Down down down the rabbit hole we go, where it stops, no one knows…Come close, little Alice, and let me tell you how you can buy some time in life.
This article describes one of my new favorite projects, Wonderland.money, and how to buy into this decentralized reserve currency.
- Wonderland is a fork of Ohm on Avalanche and blessed by the Olympus DAO
- It’s created by one of the most reputable teams in DeFi
- TIME is a decentralized currency system meant to move us off centralized fiat like the US dollar or Euro
- Investing in TIME now can mean BIG gains short-term and long-term
- TIME is backed by crypto assets and trades at a premium because people want into the protocol
TIME is only purchased on Avalanche
Before I get too deep in the weeds, let’s make sure you’re ready to even use the Wonderland.Money app.
- You’ll need a wallet like MetaMask.
- The wallet will need to connect to the Avalanche network. A really easy way to add Avalanche is to connect your wallet to Trader Joe and then switch networks.
- You’ll need some funds on Avalanche to buy Time with: several Central Exchanges offer direct deposits to Avalanche (Binance, Kucoin, Okcoin to name a few). You can also buy directly on Pangolin’s site. Or you can bridge from many networks to Avalanche using Anyswap. You’ll need Avax on the Avalanche network to make transactions and can also use that to purchase TIME.
- After the above, you can connect to Trader Joe to buy TIME directly off the market with your assets, or Mint TIME using the guide below.
What is Wonderland Money?
Wonderland is the first (and so far only) decentralized reserve currency protocol on Avalanche. It’s a fork of the Olympus DAO’s Ohm protocol and blessed by their team. Lotsa Ohmies are part of the Wonderland crew and vice-versa. Wonderland Money has team overlap with Abracadabra Money (makers of the decentralized stablecoin MIM) and Popsicle Finance. That team is headed up by Daniele Sestagalli.
What’s a decentralized reserve currency?
Decentralized: TIME is meant to be a currency system that cannot be controlled by any government or single entity. To do so it exists on the AVAX network in smart contracts. (Eventually, Wonderland would like to move these contracts to be controlled by the Wonderland DAO but for now, they are under the control of the team).
Reserve: TIME is backed by a treasury of other crypocollaterals (currently the LPs for TIME-MIM, TIME-AVAX, MIM, and AVAX). This treasury balance gives TIME an intrinsic value that it cannot fall below (there’s always money in the banana stand).
Currency: TIME can be used as a currency because it has an inherent value behind it (a proportion of the treasury balance). The eventual goal of Wonderland is to find a price flatness for TIME so that it can be used for trade, and replace the use of fiat currency like USD, EUR, etc. This will allow TIME to be used as a global unit of account in economic settings and the medium-of-exchange for various markets.
How does Wonderland Money work?
You can think about TIME as your proportion of the Wonderland treasury. You can buy into the balance by purchasing TIME off the market, or by providing assets to the treasury (minting). After you buy or mint TIME you’ll want to make sure you stake it so it gets rebased over time.
Rebasing: think of this as the protocol constantly making sure that you own the right proportion of the treasury balancer. TIME stakers have their stake rebased every 8 hours and receive rewards of more TIME for doing so. These rewards are the proceeds from minting TIME and vary based on the number of TIME staked and the reward rate set by Wonderland.
You will accrue value as you leave your TIME staked, at the reward rate APY. Currently, that APY is an amazing 42.621% to encourage the use of the protocol and will change over time based on the monetary policy. TIME is all about long-term staking: the price of time isn’t as important as the APY. As long as the APY returns are good a dip in price can still mean wealth accrual.
Why should you buy TIME?
The value of TIME = (Proportion of Treasury Balance) + (The Markets Predicted Value of TIME in the future).
Eventually, the price for TIME on the market will settle and be a relatively stable value as the market decides on what TIME is worth.
Until then, investing in TIME can be a vehicle for growing wealth: during the early phase of Wonderland Money, the system will incentivize investors heavily and reward adopters who hold onto their TIME via a very high APY: right now it’s around 42,620%.
The possible upside
The upside on buying/minting TIME is massive. Short-term you can often make up to double-digit returns on investments for minting TIME. Long-term stakers of TIME can end up making massive gains over year as Wonderland is adopted and the treasury grows. Between 9/29/2021 and 10/04/2021 the treasury balance of Wonderland grew by 44.82%.
Even in some of the worst-case scenarios where the price of TIME falls buy 50% or more, and the APY falls to 10,000%, you should make back your initial investment of TIME or more. Don’t believe me?
You can check out the staking calculator here to see the numbers. Try entering a couple of different scenarios and you’ll see what I mean!
How to buy Time
Buying TIME off the market
You can buy TIME over at Trader Joe right off the market. You’ll pay the market price and be able to stake it immediately.
See the TIME token address here.
To buy any token off of Trader Joe you’ll need an asset to trade, your wallet connected to Trader Joe, and to approve any spending on your token. You can then make the trade as you’d like.
After purchasing TIME make sure to stake it! I’ll detail more on that and how to do so after talking about minting.
The official docs for minting TIME on Wonderland are here.
Wonderland Money also allows you to mint TIME at a discount compared to buying off the market. You can mint TIME by providing the Wonderland treasury AVAX or MIM. You can also mint by providing liquidity pool tokens for TIME-MIM or TIME-AVAX.
Minting: sell your assets to buy a bond of TIME from the protocol. This bond then vests and gives you TIME to claim over a 5-day period. With a 5-day term, after 2 days into the term 40% of the rewards for TIME can be claimed and staked.
ROI for Minting
In the above screenshot I’ve highlighted the ROI section. It’s important when minting to consider the ROI.
- ROI on minting higher than ROI (5-day rate) staking: MINT time for the best ROI.
- ROI (5-day rate) staking is higher than any of the minting options: buy TIME off the market and stake it for best ROI.
How to Mint Time
You can mint TIME in two different ways: minting using AVAX or MIM, or using LPs with TIME in them.
Mint using your wAVAX or MIM:
If you want to mint TIME using wAVAX or MIM you’ll need some in your wallet. Then connect your wallet to the app here.
Click on the asset you’d like to sell to the treasury for TIME. You can see there the price you are buying at, the ROI for each, and how much has been purchased previously.
You’ll need to 1. approve the spending of your asset in your wallet, 2. enter how much you’d like to purchase, 3. press mint and confirm the action in your wallet.
Note: Once you’ve minted TIME it will vest over a 5-day period throughout which you can redeem and stake the rewards to start earning the rebase reward APY on those. Make sure to do this at the end of the vesting period, or ideally, before each 8-hour rebase (see the staking page for hours/minutes until the next rebase).
Unstaked TIME that you claim or buy off the market does not receive ANY rebase rewards. Make sure to stake it for all the rewards.
Mint using your Trader Joe LPs of TIME-AVAX or TIME-MIM:
Not only can you mint with AVAX or MIM but the treasury will also purchase your liquidity pool tokens of TIME-AVAX and TIME-MIM from you. You will need to purchase some TIME and the right asset and then pool them at Trader Joe. (You can also use the zap function at Trader Joe to add them.)
After you have both TIME and AVAX or TIME and MIM in the right proportion you can find the pool you want at https://www.traderjoexyz.com/#/pool by searching for TIME.
You can then open the pool and add your TIME and the right asset.
Once you’ve pooled the assets at Trader Joe you will receive JLP tokens in your wallet which the Wonderland app can use for minting. You’ll need to approve the spending of your LP on the minting page, then enter the amount you want to mint using and approve the transaction.
Just like minting with MIM or AVAX you will need to redeem and stake the TIME to receive rebasing rewards.
How to stake Time for Memo(ries)
The official docs for staking on Wonderland are here.
You can stake TIME you have in your wallet at the page here. Make sure to connect your wallet to the site and that you have TIME in your wallet from either buying it or claiming it from your mint.
You’ll see on the staking page a couple of things:
- The balance of TIME in your wallet
- Your staked balance inMEMO
- How much MEMO you’ll receive in the next epoch
- Your reward yield percentage for the next epoch
- The ROI for staking over 5 days
What are MEMO(ries)?
When you stake TIME at Wonderland you are given MEMO in a 1:1 proportion. This MEMO is a record of your stake. Make sure to not send it off to another wallet unless you are absolutely sure. You’ll need that to unstake your TIME in the future.
You can see the MEMO token address here.
Each 8-hour period (an epoch) you leave TIME staked you’ll receive rewards of more TIME that are automatically staked for you. This is the accrual strategy for Wonderland. When you buy/mint TIME and leave it staked you continually gain rewards of more TIME. With current rates, you’ll earn about 1.72% more TIME each day you leave it staked. The APY for TIME is currently around 42,620% and can be some pretty huge gains for stakers.
Frequently Asked Questions
Is TIME just an Ohm rip off?
Absolutely not. The Wonderland team has forked Ohm, but are making it into a unique product from the Olympus DAO’s Ohm protocol. The team is adding RPG and NFT elements, and incorporating TIME into the wider ecosystem for Abracadabra and Popsicle Finance.
How is that APY sustainable?
The APY for Wonderland is based off a strict monetary policy meant to ensure the sustainability of the protocol and will adjust over time. Right now the team has a runway over a year for the APY to to back TIME. As more users mint that runway will maintain or increase.
Can I use my TIME as collateral?
Absolutely! Head over to https://abracadabra.money/ to start borrowing MIM against your TIME as wrapped MEMO!
Why should I keep staking?
When you stake TIME you’re joining a much larger community of people that believe in a project. You’re giving a big F U to traditional finance and saying there is something bigger out there then a centralized monetary system. The people get to decide what something is worth!
Oh, and you’re also making a great choice for your future self: when you stake you bring the availability of TIME down and ensure the price of TIME stays high and stable. Buying and staking TIME leads to gains for you and all!
How does the treasury make money?
- When TIME is minted the assets are added to the treasury
- Fees from trades made using the treasury owned LPs
What are the risks of investing in Wonderland?
First off, always do your own research and only invest what you can lose.
That said, Wonderland has some unique risks: if everyone decides to sell their stake causing a bank run the price of TIME could diminish dramatically and may lead to loss of funds if you withdraw and panic sell. Don’t do that. All that said, this is a major black swan event and would only occur if EVERYONE sold and that ain’t gonna happen.
As with any DeFi protocol there is the possibility of an exploit but since this is an OHM fork that is very unlikely. The team involved is incredibly unlikely to rug since they have multiple other successful projects in DeFi.
What can I do to contribute to Wonderland?