Wonderland $TIME : The Future of Passive Income

In this article, we will be showcasing one of the recently released staking protocols and Olympus DAO fork - Wonderland.Money. As we have previously looked at the future of DeFi and in particular DeFi 2.0, Wonderland appears to be heading in the same direction.

A lot of protocols attract millions of funds into liquidity only to lose out to new projects which emerge with improved promises and better return on investment. At present, most if not all projects are facing a dilemma. The dilemma translates into how can users and liquidity can be brought in a sustainable way as opposed to attracting mercenary capital. To make things even worse, the liquidity mining programs are limited to a certain amount of tokens.

As such, to help solve this dilemma, new types of DeFi protocols are emerging intending to change the typical mining programs to be more sustainable. To better understand the new protocols, the following paragraphs will review them starting with Wonderland.

However, before we proceed, if you want to learn more about decentralized finance, DeFi 2.0 or, more about web3, then please visit our Blog where we have previously tackled these topics. Also, if you wish to start your DeFi project or to receive blockchain consulting, then definitely contact our team of elite developers.

What is Wonderland $TIME?

In short, Wonderland is the first decentralized reserve currency protocol available on the Avalanche Network based on the $TIME token. Each $TIME token is backed by a basket of assets (e.g., MIM, TIME-AVAX LP Tokens, etc.) in the Wonderland treasury, giving it an intrinsic value that it cannot fall below. Wonderland also introduces economic and game-theoretic dynamics into the market through staking and minting.

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Moreover, and discussed already, Wonderland is one of the most popular Olympus DAO forks. This is the first decentralized reserve currency protocol based on the Avalanche Network. Each unit of TIME is backed by different reserve assets such as Magic Internet Money and liquidity tokens. This model and mechanisms are identical to $OHM, ensuring that TIME has an intrinsic value it cannot fall below.

Wonderland aspires to build a policy-controlled currency system on the AVAX ecosystem. The TIME token is essentially the ecosystem's tradeable unit and medium-of-exchange currency. Also, the token's short-term goal is to maximally increase growth and user adoption. As opposed to striving to reach a pegged value similar to an algorithmic stablecoin such as $BUSD, TIME is set to reach a stable value over time being backed by a basket of goods that do not include any fiat currency.

Wonderland Supply in Circulation

As a potential investor or just out of curiosity users might ask themselves what is the exact supply of Wonderland TIME tokens? Well, in fact, the total supply of $TIME has no current market cap. Since TIME is aspiring to reach a stable valuation in the long term the team behind the project has decided that this is the best solution and has not set a market cap. Currently, each unit of TIME is backed by roughly $2,300.00 of reserve assets in the treasury. The treasury balance at the time of writing this article of Wonderland is roughly $824,672,696, while the project was released to the wider public as of September 2021. The TVL (total value locked) of Wonderland is the largest of any Olympus DAO fork and is currently at over 1.5 billion USD.

Wonderland $TIME's Origin

Wonderland $TIME is originally developed by an anonymous team. However, it is closely related to the Abracadabra.money platform which is a lending platform using interest-bearing tokens to create $MIM (Magic Internet Money), an algorithmic stablecoin. Abracadabra was founded by Daniele Sesta, who is an Italian web3 developer who also developed and founded Popsicle Finance. Daniele is highly respected by his peers in the web3 community and has a large Twitter following of above 250k followers.

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Even though Wonderland does not have any official partnerships or relationships with Olympus DAO, the two protocols co-exist being both rivals and complementing each other along the way. Contrastingly, Wonderland has taken away lots of Olympus' stakers by offering better yields and potential returns. At the same time, $OHM stakers can also borrow against their collateral on Abracadabra.money.

What is Wonderland's Purpose?

The project's goal is to build a policy-controlled currency system resting natively on the Avalanche Network while considering the behavior of the TIME token. When looking at the long-term potential of Wonderland, the team behind the project believes that the system they developed can be used to optimize for stability and consistency. As discussed already, the aim is that the $TIME token can function as a global unit-of-account and medium-of-exchange currency.

How Wonderland is Different Compared to Existing Protocols

Although Olympus DAO started the creation of multiple forks that wanted to benefit from its mechanism to acquire protocol-controlled liquidity, Wonderland sticks out as one of the first. Therefore, being one of the pioneers of its kind it is one of the most successful forks of the original protocol.

The standard mechanism utilized by Wonderland is very similar if not identical to that of Olympus. Each unit of TIME is backed by a treasury consisting of $MIM and various liquidity tokens. If TIME were to fall below its backed value, the treasury would buy back and burn TIME to push the price back above its floor. However, there is no upside limit to the price of TIME. For example, the ATH (All-Time High) value of TIME was above 9,000 USD, however, as of recently it is fluctuating and has dropped below 3,000 USD at the time of writing this article.

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Additionally, users can choose between two different investment strategies related to Wonderland: bonding and staking. Bonding translates to minting new TIME tokens and buying them from the treasury for a discounted price. After waiting for a period of 5 days, bonders can choose to either stake their newly-acquired TIME or to sell it on a secondary market or decentralized exchange (DEX). Bonding is an active investment strategy since new TIME is vested linearly over the 15 epochs, with each epoch consisting of eight hours. Bonders can decide after each epoch whether to stake or sell, depending on the price action.

In other words, users can manipulate their TIME depending on the current price. Therefore, they can always choose to withdraw or exit whenever it suits them best. This is different compared to other existing protocols where funds remain locked up or staked for a longer period of time.

Last but not least, staking is a passive investment strategy that allows users to acquire TIME via auto-compounding. Each staked unit of TIME automatically increases every epoch (or every eight hours) based on the current APY. That way, stakers benefit from the expansion of TIME supply and keep their share of TIME constant relative to the total supply. Since the APY offered on staked TIME is close to 70,000%, stakers benefit from maximizing the time they stay staked and expanding their share of the entire supply. As a result, the price of TIME is only of secondary importance, as the massive APY can outperform a falling price. At present, users who stake their TIME can earn potential returns - ROI (Return-On-Investment) equaling up to 9.5% for a 5 day period. With such numbers, Wonderland outperforms Olympus DAO's APY and potential ROI.

Olympus DAO example

We have mentioned Olympus quite a lot in this article and if you are still not familiar with what Olympus DAO is, then please have a look at our previous article about it. Otherwise, here's a short definition of the protocol:

Olympus is a decentralized reserve currency protocol that is running on the OHM token. OHMs token are backed by multiple digital assets stored in the Olympus treasury This, in turn, creates a ground price for OHM that the actual price shouldn’t fall below. T participate in Olympus, users can either stake their existing OHM tokens and get new OHM from the rebase rewards, trade different assets in exchange for discounted OHM or earn OHM from airdrops for completing OHM transactions. Trading assets in exchange for discounted OHM is one of the main concepts that allows the protocol to own its own liquidity.

Why is the price of TIME so volatile?

It is very important to understand how early in development the Wonderland protocol is. A large amount of discussion has centered around the current price and expected a stable value moving forward. The reality is that these characteristics are not yet determined. The network is currently tuned for expansion of TIME supply, which when paired with the staking, minting, and yield mechanics of Wonderland, result in a fair amount of volatility.

TIME could trade at a very high price because the market is ready to pay a hefty premium to capture a percentage of the current market capitalization. However, the price of TIME could also drop to a large degree if the market sentiment turns bearish which is the recent trend based on recent news surrounding Bitcoin and the crypto world as a whole. Users should expect significant price volatility during the growth phase of the protocol, so it is important, similar to any other project to do prior research on whether this project is suitable or not.

Is the Price of TIME important?

User-owned TIME balance will grow exponentially over time thanks to the power of compounding. For example, a small investment in TIME token for $400 now and the market decides that in 1 year time, the intrinsic value of TIME will be $2. Assuming a daily compound interest rate of 2%, the user's balance would grow up to about roughly 1377 TIME by the end of the year, which is worth around $2754. This is generally $2354 in profit! At this stage, users should understand that they are paying a premium for TIME now in exchange for a long-term benefit and potential returns. Consequently, users should have a long time strategy and patience to allow their TIME balance to grow exponentially and make this a worthwhile investment. Therefore, the price of TIME is not as important as its APY.

Summary

We hope you have enjoyed reading this article about Wonderland and the $TIME token. We have covered the most essential information such as what is TIME, its supply in circulation and market cap, its origin, purpose, and ultimately how it stands out compared to existing protocols. Our team believes such projects and similar protocols can shape the future of DeFi and ultimately make the transition to DeFi 2.0.

So if you would like to learn more about DeFi and build your own DeFi project or receive blockchain consulting, then please feel free to contact our team of elite developers who can help you achieve great results and become the pioneer of our future. Also, if you would like to learn more about the services our company offers, then definitely check out the Services page.

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