February 2021 Abstract Timeswap is a fixed income lending and borrowing protocol for ERC20 tokens built on Ethereum. It is a non-custodial, immutable, and censorship resistant protocol leveraging the value of network effects. The maturity time of deposits and loans can be set at any time, giving users astounding flexibility to make money markets that fit the time preferences of most people. It is a brutally minimalist, gas efficient, and self-sufficient protocol that works without the need of price feeds, oracles, and liquidators, which minimizes attack vectors on the protocol. It is an ERC20 token agnostic protocol that provides permission-less usage across the entire ERC20 universe. It is especially useful as a money lego to build exotic Defi products that need discrete time preference liquidity in their contracts. While Timeswap can be thought of as bonds in traditional finance, it is a special Defi Primitive as its financial design makes it a unique instrument which isn’t possible in the traditional finance world. Just like how the constant product AMM model revolutionized DEXs, Timeswap aims to revolutionize decentralized lending and borrowing along with insurance and derivatives markets.

Introduction

Timeswap protocol users swap between present ERC20 tokens and future ERC20 tokens. It uses a three variable constant product automated market maker algorithm similar to Uniswap for the interest and collateral calculation. Interest amounts to be paid are known upfront at the time of initiating the transaction. A Timeswap pool has three parameters, an ERC20 as the asset being lent and borrowed, another ERC20 as the collateral, and a fixed maturity time. Users that interact with a pool will follow the fixed maturity time for their deposits and loan. Lenders interact with a Timeswap pool with assets ERC20 token A, collateral ERC20 token B, and a fixed maturity time. After maturity, they receive the principal, plus fixed interest

February 2021 Abstract Timeswap is a fixed income lending and borrowing protocol for ERC20 tokens built on Ethereum. It is a non-custodial, immutable, and censorship resistant protocol leveraging the value of network effects. The maturity time of deposits and loans can be set at any time, giving users astounding flexibility to make money markets that fit the time preferences of most people. It is a brutally minimalist, gas efficient, and self-sufficient protocol that works without the need of price feeds, oracles, and liquidators, which minimizes attack vectors on the protocol. It is an ERC20 token agnostic protocol that provides permission-less usage across the entire ERC20 universe. It is especially useful as a money lego to build exotic Defi products that need discrete time preference liquidity in their contracts. While Timeswap can be thought of as bonds in traditional finance, it is a special Defi Primitive as its financial design makes it a unique instrument which isn’t possible in the traditional finance world. Just like how the constant product AMM model revolutionized DEXs, Timeswap aims to revolutionize decentralized lending and borrowing along with insurance and derivatives markets.

Introduction

Timeswap protocol users swap between present ERC20 tokens and future ERC20 tokens. It uses a three variable constant product automated market maker algorithm similar to Uniswap for the interest and collateral calculation. Interest amounts to be paid are known upfront at the time of initiating the transaction. A Timeswap pool has three parameters, an ERC20 as the asset being lent and borrowed, another ERC20 as the collateral, and a fixed maturity time. Users that interact with a pool will follow the fixed maturity time for their deposits and loan. Lenders interact with a Timeswap pool with assets ERC20 token A, collateral ERC20 token B, and a fixed maturity time. After maturity, they receive the principal, plus fixed interest