What is this about?

Timeswap, a project introduced by Ameeth, is the first Oracleless lending & borrowing protocol in DeFi that allows the creation of money markets for any ERC-20 / ERC-4626 token pair in a secure manner¹. The project requested a grant of 200,000 ARB, which will be matched with $400,000 in TIME tokens, with a minimum of 1% of the total TIME token supply to be distributed on the Arbitrum network during phase 1 of pre-mine, from October 2023 to January 2024¹. The grant will be allocated as follows: 40% to ARB markets, 30% to ETH markets, and 30% to other markets¹.

How is the community reacting?

The community has largely reacted positively to the Timeswap proposal. Users such as Medusa, Traderjoe, EynSoph, George_WG, Sonic_level, and Apoorv9 expressed their support for the proposal, highlighting its innovative approach to money markets, its potential to improve capital efficiency and utility for various tokens, and its alignment with the growth and security goals of the Arbitrum ecosystem^3,4,5,6,7,9. However, SEEDGov questioned the requested amount for the grant, suggesting that it should be in line with the recommendations for the STIP, which is below 200k⁸.

Why this is positive?

The Timeswap project is seen as a positive development due to its innovative approach to DeFi money markets. It is the first Oracleless lending & borrowing protocol in DeFi that allows the creation of money markets for any ERC-20 / ERC-4626 token pair in a secure manner. This will unlock capital, boost capital efficiency, and bring additional utility to tokens. By incentivising deep liquidity in Timeswap pools, users are secure from oracle manipulation attacks and it enables large transactions, leading to greater overall capital efficiency¹.

Why this is negative?

The only negative aspect raised was by SEEDGov, who questioned the requested amount for the grant, suggesting that it should be in line with the recommendations for the STIP, which is below 200k⁸. However, Ameeth responded to this concern by stating that they are open to amending the request and provided context around the numbers, including their peak TVL on the Arbitrum network and the volumes they achieved in lending & borrowing without any token incentives¹¹.