DeFi aka Decentralized Finance is a decentralized, open, and permissionless alternate financial system providing a range of financial services like simple value transfers, lending, borrowing, staking, yield farming, and much more, through smart contracts. There is no central authority or third-party interference thus enabling peer-to-peer transactions. Data integrity and security are maintained as the DeFi realm is built over Blockchain technology.
Unlike traditional systems, the world of DeFi can be accessed through just an internet connection, digital assets, and digital wallet. The easy access and no eligibility criteria have attracted the mass adoption of the DeFi ecosystem due to this financial services like lending and borrowing have made the biggest impact on the DeFi platform thus creating an avalanche of opportunities. Time swap is one of the protocols in the DeFi realm.
Time swap, built on the Ethereum platform, is a truly permissionless fixed maturity lending and borrowing platform. It is the first fully decentralized money market protocol based on the AMM (Automated Market Maker). Automated Market Maker is smart contracts that are programmed to create a liquidity pool with cryptocurrency deposits by anyone, which makes market order books redundant. The algorithm used by the AMM for interest rate discovery and collateral ratio determination is similar to that of Uniswap. The kind of revolution that the AMM model brought in terms of Decentralized Exchanges (DEXs) similarly time swap endeavors to revamp decentralized lending and borrowing in addition to the insurance and derivatives market.
The protocol provides immense flexibility as users can customize and set the maturity time of deposits and loans according to their preferences. It functions independently of blockchain oracles, a third-party that provides smart contracts with external data sources, or liquidators thus making it self-sufficient and the protocol itself is gas efficient too. Lenders earn passive income through deposits accompanying that they also receive insurance that gives them claim over the lender’s collateral in case of default risk.
Anyone on the Ethereum platform can access and use this protocol making it an ERC-20 agnostic protocol with no permission required. Any combination of ERC-20 tokens can be used lent and borrowed on the protocol. It aids in building and creating exotic DeFi products that require time preference liquidity as per the contract’s individual needs. This makes Time Swap a go-to platform for beginners to start lending and borrowing.
Since it is based on the Ethereum Blockchain all the lending and borrowing is done in ERC-20. Three variables are involved in the process of lending and borrowing on the Time Swap protocol, ERC-20 token A as the asset that will be lent and borrowed, ERC-20 token B as collateral, and a fixed maturity period. After the maturity period of the deposit, lenders receive the principal plus fixed interest of token A but lenders cannot withdraw their collateral ERC-20 token B unless they pay the principal plus fixed interest of token A. In case of default risks i.e., the ERC-20 tokens A received are at by the lender at the end of the maturity time period the lender is compensated with the collateral ERC-20 tokens B this facilitates in lenders being in control of the yield derived from their deposit and the extent of default risk instead of an overall risk vs yield for all lenders.
Interest amounts to be paid are known beforehand on the protocol at the time of the transaction but there is no system for sending decentralized notifications on the interests becoming due on the fixed time maturity deposit as they have flexible timeframes. Due to the lack of decentralized Push notification, there are huge possibilities of missing out on due dates and losing their collateral ERC-20 tokens. Here comes EPNS with a solution.
Now how does EPNS provide a solution for TimeSwap users?
EPNS, a decentralized platform-agnostic Push notification protocol that is creating the world’s first open communication layer, aids in alerting users of DeFi with Push notifications about their transactions and activities over the DeFi protocols and applications. It sends notifications directly to the user’s digital wallet address who have subscribed to its channel enabling any smart contracts, dApps, or traditional servers to send Push notification. Due to its decentralized nature, the user’s data and sensitive information linked to the user’s digital wallet are not compromised and remain secure.
Since there is a lack of decentralized notifications protocol users miss out on important and time-sensitive information and updates. At present, users receive notifications on multiple platforms like telegram, Twitter, text messages which users could miss, when on Web 2 users receive push notifications about their Candy crush updates, unless there are Push notifications giving users real-time updates Web 3 will not reach its full potential. EPNS is helping Webs 3 reach its unrealized potential.
Time Swap’s collaboration with EPNS is a complete no-brainer. Let us explain why?
Users of Time Swaps will have an open, secure, and decentralized communication channel with the protocol. Time Swap users can subscribe to its channel on EPNS and efficiently receive notifications about their loans, deposits, and interests.
The collaboration will benefit the users by:
- Borrowers will be notified about maturity date of loan approaching as each loan has a flexible time frame.
- Collateral of borrowers will be secure and not liquidated on missing loan repayment due date.
- Lenders can receive notifications about tokens received on maturity of deposits in real-time.
- Lenders will be able to withdraw the tokens received and invest them in several opportunities available on the DeFi platform which are open only for a short period of time.
- Users will be notified of bugs in smart contracts in real-time helping users avoid unhealthy smart contracts saving them from future default risks or the risk of being hacked.
The collaboration pilot program of Time Swaps with EPNS will make Time Swaps a hassle-free, and effortless money market protocol. Without the decentralized push notification protocol, it will be a lackluster experience for the users of Time Swaps which will also incur them token losses on missing vital loan due dates, which will make the user’s relationship with the DeFi lending and borrowing platform estranged.
EPNS will assist Time Swaps to become an integral part of the DeFi ecosystem, as it will aid in facilitating real-time communication leading to a no friction experience for the users.
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