Timeless is a yield tokenization protocol on Ethereum and Layer 2s like Optimism and Arbitrum where the yield tokens never expire.
Timeless splits user deposits into two types of yield tokens: Perpetual Yield Token (PYT), whose holders receive the yield generated by the user deposits, and Negative Yield Token (NYT), whose market price moves in the opposite direction as PYT.
Timeless enables the following use cases:
- Yield boosting: Boost the yield you earn from any supported farm by 1x-2x
- Yield hedging: Decrease the volatility of the yield you earn
- Yield speculation: Speculate on whether yield rates are going up or down
Timeless is built on the Ethereum Virtual Machine (EVM) and deployed to EVM-compatible blockchains.
Timeless is permissionless, meaning you do not need permission from anyone to use any part of Timeless.
Timeless is immutable, meaning its business logic can never be arbitrarily modified even by the team.
Timeless is composable, meaning it uses common standards (ERC20, ERC4626) and thus can fit into other protocols like Lego pieces.
Timeless is a yield market protocol. You can provide assets to Timeless (e.g. 100 USDC) and mint PYT and NYT (e.g. 100 PYT and 100 NYT). The assets will be deposited into a farm, and the yield earned can be claimed by the PYT holders. By holding either only PYT or only NYT, you can build either a long position or short position on yield rates.
When you use the yield boosting feature, you're essentially buying xPYT on the market. Since xPYT trade at a discount to the underlying asset, you'd be earning a higher yield rate than if you directly deposited your money into the farm. For instance, if you buy 1 xPYT for 0.75 USDC, you would earn the yield produced by 1 USDC, so you'd be earning yield with a 1 / 0.75 = 1.33x multiplier. Holding PYT instead of xPYT works in the same way.
Bunni was initially released in October 2022 as a public utility that represents Uniswap v3 liquidity positions as fungible ERC-20 tokens instead of NFTs. It enables more complex incentivization schemes to be built for Uniswap v3 liquidity since ERC-20 tokens are easier to work with.
Since then, we have transformed Bunni into a full-fledged liquidity engine sitting on top of Uniswap v3. We have made improvements upon the vetokenomics used by protocols like Curve and Balancer that:
- Encourage protocol longevity by disincentivizing farming-and-dumping & aligning the interests of farmers and LIT holders
- Provide the protocol with a large treasury of cash, in order to fund protocol growth & decrease LIT price volatility
- Maintain a high level of liquidity for LIT
To learn more about the tokenomics, please read FOO: Fungible Ownership Optimization.
Bunni liquidity incentives will be launched on January 18, 2023.
The community will be able to obtain LIT from our Liquidity Bootstrapping Pool (LBP), which will begin at 12pm January 9, 2023 (Pacific Time) and will be active for a 7 day duration. The LBP will be accessible at lbp.timelessfi.com.
According to Timeless LIT token launch source (Jan 4 2023), LIT sits at the heart of our liquidity engine, Bunni, which aims to maximize liquidity on Uniswap v3. By launching LIT, we hope to enable other projects to incentivize their token liquidity with capital efficiency orders of maginitudes higher than current levels. We also plan to use LIT ourselves to bootstrap liquidity for the Timeless yield markets.
Token distribution
The total supply is 1 billion LIT.
- Community: 72%
- 45% distributed as gauge rewards on a 4 year halving schedule
- 11% held in the community treasury
- Used for grants, bug bounties, audits, et cetera
- 10% sold through LBP
- Starts at 200m valuation ($0.2)
- Starts with 96/4 weights, ends with 30/70 weights
- Part of the resulting cash will be used to bootstrap liquidity
- The remaining cash will go to the community treasury
- The unsold LIT will go to the community treasury
- 5% distributed to veMPH holders over 4 years via a staking pool
- 88mph team members will not participate in the staking pool
- 1% airdropped
- 25% to early Timeless & Bunni users
- Timeless team members will not be included
- 75% to active Uniswap v3 LPs
- 25% to early Timeless & Bunni users
- Team: 25%
- 25% vested over 4 years
- Investor: 3%
- 3% sold in the seed round
- Proceeds given to team treasury
- 6 months cliff, then 1 year vesting
- 3% sold in the seed round
The airdrop & veMPH staking pool will be launched on January 25, 2023.
