The CryptoLab Blog

This is a great video that goes over what Wonderland is all about.

0:00 Hey, everyone. Welcome back to another wonderful day of Earning Passive Income. If you're new to this channel, we ...

0:00
Hey, everyone. Welcome back to another wonderful day of Earning Passive Income. If you're new to this channel, we want to maximize the use of our crypto to generate passive income. So, today, we're going to do a deep dive into time, Wonderland, if you're currently subscribed to my channel. Then you know that I am super bullish on time. I've been in it for about five weeks now.
0:20
And when I first bought into time, I, you know, I saw the huge APY. I saw that.
0:27
I could actually generate good passive income with not that much of an initial investment, and my first thought was, this is way too good to be true. So, I just put a little bit of money in, to see how it worked crypto moves really quickly. So, honestly with time Wonderland, I didn't do that much research upfront. I just put some money in to see if it actually grew. When I saw my money growing, I put in some more and then as the price of time fell, I put an even more and right now my current investment in time is around $20,000. And then I started thinking, how much research have I actually done on this protocol?
1:01
When I have $20,000 in there, and I know a lot of you might be really nervous about putting money in, or maybe you put money in, just because you saw a high API, and you don't exactly know how that all works. So, today, I want to do a deep dive into Time Wonderland to talk about where did it come from? How is it supposed to work? Where does this crazy APY come from? How is the money actually being used? What are the biggest risks? If you are invested into time Wonderland, and what are the different options you have within the protocol? To make money. So, let's jump right into it.
1:34
one thing I really love about time wonderland is that it is, on the surface, very simple.
1:41
You connect to the avalanche network.
1:44
You enter the application and you're presented, you know, with this initial dashboard shows you the price of time, the APY, the backing per time. And I will explain all of these as the video goes along.
1:58
You can easily stake your time, goes into memo, or you can wrap your memo. There are different ways that you can mint time coins.
2:07
It has a Calculator where you can kind of look at, oh, you know, if I have 100 Memo and the price of time is 2500, how much money will I have after a year? Of course, you'll have, you know, $213 million, So this all seems crazy, right?
2:25
My first thought was why is everyone not doing this? Everyone should be putting money into this. And getting 64000% APY, I've discovered three main reasons why people are not invested in time.
2:40
one, they do not know about it at all.
2:43
two, they do know about it, and they don't know how to actually invest and stake their coins. And three, they think it's too risky. They think it's a Ponzi scheme or they're just too nervous about it. There are other reasons. But those are the three main ones that I've seen just in my discussions, with friends and family, and co-workers, and other people on YouTube. So I want to help address a lot of these concerns. A lot of the questions so let's start off by just looking at where did time Wonderland come from? Well, the founder of time is Daniella ..., and he helps run time Wonderland popsicle finance, abracadabra money, and recently took on an advisor role at Sushi Swap, and if we look back at his Twitter from September second, when time launched September second of 2021, he says a little bit of background on the own fork that we just launched an avalanche tonight. How and why it will be a cool experiment.
3:33
So, he is a huge fan of Olympus Dow. Olympus Dow was the first Dow ever created on the Ethereum Network, and he basically talks about how he's a huge fan of the projects reserve. Currencies are extremely complex. And so, he wants to make kind of an experimental fork with Wonderland to not only replicate what Olympus did, but actually try to further it change it and see how it can be. Evolved. So, even at the outset, he had a really strong vision for what time Wonderland could be and how he would continue to evolve. It. Kind of push the bounds. Of a doubt, if you actually go back to time Wonderland, you can go to the documents page. And if you go to the FAQ, I mean, it will walk you through exactly everything that Wonderland is trying to do, and kind of how they define themselves, Wonderland was the very first Reserve currency on the avalanche network.
4:28
And they are currently the largest out an existence across all net works. So part of why these were created is because we have stable coins, like USD T USD, see, die, and things like that, And they are tied to the US dollar. So while they are digital, they still suffer from the same downside as the US dollar, like when inflation skyrockets and when the dollar starts to lose its value. So do these stable coins? Time is different, because time is not a stable coin. It's an algorithmic reserve, currency backed by other decentralized assets, so essentially, if we go back to this dashboard, we see this Treasury balance. So this Treasury balance is invested into dozens of other assets across the crypto world, And This balance ensures that the backing of time will, at minimum, right now, be $1486 per coin. You can see that it's currently trading at a much higher price than that.
5:30
Because people see the value in it. But because of this Treasury balance and all the investments that it has, the coin will never fall below this price, And if it does, the algorithm, the protocol will buy the coins back to get it back up above this base price. And all the coins that it buys, it will burn. So how does the protocol actually work? Well, there are basically two main mechanisms that you can do within the protocol. And that is minting and staking. And this is partially based on the prisoner's dilemma and game theory. So if we look at the prisoner's dilemma, you can see when two people are involved in this problem.
6:07
If they both confess, they both get five years If one remains silent and another one confesses that person goes free, but the other person gets 20 years.
6:17
However, if they both remain silent, they each get one year, and that is the best outcome for all people involved.
6:25
So, if we look at Time Wonderland and their game theory, we see that there are, there's Staking, and there's minting, bonding, and selling. So if both people involved are staking, there is more staked into the protocol. They are earning their rebase rewards, and everyone is benefiting.
6:43
However, people still benefit If one person is taking in one person is bonding, or if two people are bonding, Where it gets bad is if people are selling, and if everyone is selling, that is the worst-case scenario for the protocol. OK, so first, let's look at staking.
6:59
So, if you are staking time, you simply put your time into the protocol and you are getting reward yields every eight hours. And the estimated roi after five days right now is 9.2%, and overall, if this all stays consistent, it will be 64000% APY for the year. However, these APY rates are determined by an algorithm, the algorithm of the currency determines if the currency is growing or shrinking, but we will get to all that.
7:31
So, if you are staking time you put your time in here. You get 0.59% every eight hours and you never have to think about it again.
7:40
For example, if I'm looking at my current portfolio in-time Wonderland, I started off with point to time. I ended up buying more and buying more and buying more.
7:52
I believe my, the total I purchased is about for time, and currently I have 5.7 time. So I've gained almost 1.7 total just from me leaving it in there. And that at its, at times, current price, that is around $5500 because the price has gone down.
8:12
My total profit right now is only about 1700, But if the price goes back up, then that's an insane profit. But this is how staking works. You literally put it in there and every day it is growing and it is receiving compound interest every eight hours. So, it says it right here, if both people steak, it's the best thing for both of us and the protocol. OK, so we talked about Staking, Let's talk about bonding and minting says Staking takes time off the market and puts it into the protocol while bonding or minting provides liquidity and men for the Treasury. So, if you go to the minting dashboard on the website, you see that.
8:48
I will actually currently the price is 30 to 98, but if we meant we can receive a timed token at 3069 and 58%. So you see that it's a pretty big discount. You can see that you can also use, just MIM to minted. And you'll get a smaller Roy. And whenever you do Mint, your time is locked up for five days. And you progressively receive your time point. Over the course of those five days. Why this is really good for the protocol is because you are minting new time. So essentially you are giving $3000 to the treasury and they are giving you a brand-new asset that has never existed before, so it costs them nothing. So this is 100% profit for the Treasury. And then that profit is used to invest in other assets, as well as give rewards back to the stickers. So if you are mainly staking on the protocol, you don't care as much about the price.
9:45
Because the longer you hold it, the more time you have and the less that the price matters. In fact, if you look at the FAQ, it says, why does the price of time become irrelevant in the long term? And it's because, if you are staking time, there is an exponential curve of the amount of coin that you have. So even if the price drops the fact that you have so many more time coins, it doesn't matter, because you're going to gain value.
10:10
And if we look, let's say you buy time at $400 per coin.
10:15
And in that one year, timespan, the value of time falls to $2 per coin.
10:22
But if you are making daily compound interest of 2%, then you would have about 1877 time, which would be around $2754. So you are still making a huge profit even though the price has fallen. If you are minting time, that's where you care way more about the actual price because that determines the ROI that you are going to get. When you meant, OK, so let's take a look at the dashboard and just make sure that you understand what all of these different things mean. So, time, price is the current price of time. The market cap is how much all time combined is worth.
10:58
The T V L or the total value locked is the amount of time that a stake in the protocol.
11:04
The APY is the current annual percentage yield that you'll receive if you are staking.
11:09
The current time index, this can be a little bit confusing.
11:12
This is the amount that your time will have grown if you started staking on day one of the protocol. So, if you started staking time on the day it was released.
11:24
You would now have eight zero point three one time per one-time state. So essentially, eight hundred and thirty 1% return.
11:32
The Treasury balance is the amount that is in the current treasury that is being invested, and the backing per time is just the amount of time coins divided by the treasury. So when you divide that out, this means that every time coin is backed by at least almost $100. And then the runway is how many days at the current rate that profit can continue to be distributed to all of the memo stickers. So essentially, if the APY goes down, then the runway potentially gets longer. And I actually don't think I mentioned this before. So when you do steak time, you actually receive memories called Memo.
12:10
So that is the coin that is actually being staked.
12:13
And one memo equals one time always. So when you un stake your memo from the protocol you will receive time back at the exact price. I do want to pause here for a second, If this is helpful at all. So far, please don't forget to like and subscribe so that more people can find this video and find this channel. So a huge question that always comes up with time, or really a lot of these Dow's is how is this APY so high? How can that possibly be real? How can this API be sustained for 411 days? Well, one thing you have to consider is that the Treasury, of nearly $900 million is being invested across dozens of other crypto assets that also have huge returns.
12:58
For example, if we look at this tweet from Wonderland money, today, a UST yield farming position was opened with the Treasury, deploying $48 million of UST into mimms spells, UST, cauldron.
13:11
This loops receiving a 110% API, with very minimum risk. That translates to $144,000 USD each day. So this is just one of the high yield assets that the Treasury has invested in. In fact, in their Discord they actually link to the wallet address of the time Wonderland Treasury.
13:32
So, you can see that there's one point one billion dollars in here right now. I'm not gonna go through each of these individually. There are actually some other great videos that I can link in the description, walking through the current Treasury, but you can see that they have time and MIM and CV X and spell. And they're indifferent, liquidity, pools, and in different yield farms. They also have a decent amount of debt, which is why one point one billion is not the Treasury amount on the dashboard. It's actually 190 million. So that's one reason why the API is so high. And it's determined by the algorithm of the protocol.
14:05
The other thing you have to keep in mind is that if you put one thousand dollars into time Wonderland, you are not making your APY on that thousand dollars. You are making your APY on the coin itself.
14:20
If you are not following route to financial independence, you need to do that immediately, one of the absolute best Twitter accounts out there, but he talks about how the APY is only telling you how much time balance will increase based on the minting schedule.
14:36
It is not how much money get. So if you buy one-time today, you might have 712 time tokens in one year. But there will probably also be many more time tokens in, circulation, therefore the price will have fallen. So don't think that if you put in $1 thousand dollars that, you're gonna have $700,000 at the end of the year. Again, this is also where the Calculator tool on the time Wonderland App might be helpful. It's highly speculative and it is complete guesswork, but you can get an idea of different scenarios that could play out in the Wonderland protocol. So, for example, if you have 10 memo, you purchase it.
15:14
Let's say you purchase it at $5000 per coin, let's say the APY, yeah, it's the current API of 64,000, and the future price of Time falls to $2000.
15:27
You put in $50,000, and even though the price has fallen after 52 days, you've already broken, even after a year. I mean, you have $129 million, which would actually be insane.
15:41
So, let's say, if we're looking at this more realistically, that the APY drops to a 10th of what it was. So, let's say, 6400, and the coin also drops down to a 10th of what it was.
15:54
Even in that scenario, you would still have $315,000. That's why I say it But in the long term of staking, the price is not as ....
16:05
So another thing you always hear people talk about time Wonderland or a lot of these Dow's is, well, this is just a Ponzi scheme. So let's look at the biggest red flags for a Ponzi scheme.
16:14
High investment returns with little or no risk.
16:17
I personally think that time Wonderland is pretty risky. I will talk about those risks later in the video, but let's keep going through this list. overlie consistent returns.
16:28
Yes and no. I mean, because consistently the API is higher than a savings account, much higher than a savings account, but it does continue to ebb and flow. The price has dropped a lot. The APY has dropped considerable amounts.
16:41
So I wouldn't say it's completely consistent unregistered investment's. Yes, that's true.
16:48
Unlicensed sellers. I mean, I guess this is also true. Probably not in the same way that they're defining it necessarily because crypto is just kind of a ...
16:58
current thing but I understand what they're saying. Secretive or complex strategies, I would say, no. They're very open about everything they're doing. Recently they started doing voting on big decisions for the governance of the Dow. So time token holders can actually vote on the decisions that they make.
17:14
And in terms of complex strategies, I mean, it's, it's laid out right here. You can go and look at everything, how the APY is calculated.
17:24
You can look at what they're invested in. And they're very open about all of that. That's the whole point of a dao.
17:30
Issues with paperwork I don't think is necessarily relevant and difficult to receiving payments, that is just not true. If I, if I wanted to, I could take my money out every eight hours. So, I would say there is no difficulty in receiving payments. In fact, this might be a topic for another video, but if you go on snow trace and go to the memories token, you can actually go to holders and see who have the largest portions of memories. So, if we look at here, the Wonderland Protocol has the most obviously. But then this adress has 10,587 memo.
18:09
This one is almost 5600, So there are people who are holding a lot of memo.
18:14
If we look at this account, yes, OK, so this person, at least for awhile, was selling 10 memories every single day. At the current value, that's about $32,000 a day. Now if you look at the last page of their transactions, we see that they bought in at the very beginning and they were super bullish on it.
18:35
So is it difficult to receive payments? I would say not. So if it's not necessarily an entire ponzi scheme, you know, I don't think the whole thing is just going to vanish $900 million is just going to disappear.
18:47
But what are some of the biggest risks with investing in time, Wonderland?
18:51
Well, one risk, I think, is something that we just looked at with these huge whales coming in, accumulating a lot of time because they're able to invest, you know, $40 million and then selling all at once. This could potentially cause the price to crash. In fact, if we go to deck screener and pull up the price of time and zoom out, we can see that this kind of happened to an extent.
19:14
So the price was nearing $10000 only about two months ago, and now the prices crashed all the way down to about 3300. 1 of the reasons that this crash happened was because, on abracadabra, you can actually stake your Memo coins, or your W memo, and then borrow against them.
19:34
So when you borrow against your W memo, and I can explain this in another video, But just kind of quickly, when you put your W memo on here, borrow against it, you are creating a leveraged loan. So right now I have a small leveraged loan, but I'm only leveraged about 17%.
19:52
Some people leverage a lot, because you can actually do this cycle up to 10 times.
20:00
So I could borrow mihm from my W memo, buy more time, stake it, and then create more W memo, and do that loop again. However, that can be really dangerous, because if you do that loop a bunch of times and the price of time starts to fall, your collateral value will also fall, which puts you at risk for liquidation. If your position gets liquidated, it will automatically cash out all of your collateral at a lower price to cover your loan. Causing the price of time to go down, which will then cause more liquidations. The founder, Daniella actually addressed this at the price, was going down on December ninth and kept going down because people were over leveraged. So, you have to keep in mind the liquidity price and the health factor, which it tells you right here, kind of what the liquidation price would be. This avoids giving people free entries, and free money, as liquidity is very deep.
20:56
So that is one big risk of time is that whales can come in by up a bunch, generate a bunch of return, and then sell it all at once causing the price to crash. Another risk with dow's is just it being a complete rug pool and just it vanishing.
21:11
That technically is a risk I just don't think that's going to happen because Daniela is known founder. He's very vocal, he's very passionate about this community. The community is incredibly large. There's $900 million in the Treasury. And again, I just don't think that that's going to just vanish. However, if we do look at the FAQ page, Wonderland is not currently audited.
21:36
They said that they might audit at a later stage, but, you know, it is not certified by any auditing organization at this time. So, that also is technically a risk. I think another risk with the fact that it is not currently audited is that it could get hacked. I don't know how it would be hacked. I am not technically minded like that. But I know that hackers are inventing new ways to hack things in crypto all the time. So that technically could happen on the Wonderland protocol. But I think Daniela, and the dev team are obviously trying to guard against that and are very cognizant of that.
22:12
And then I think the last biggest risk is basically becoming your own worst enemy. So with a lot of these high yield projects, it's very easy to get caught into confirmation bias. You look on Twitter, you find the founder. You find the project. You find other people that support it. You like all those tweets. And then Twitter just starts showing you all the other people who agree with you. And then you can get super excited about something and put in all your money. And then it turns out to be fake all that to say just make sure that you are doing your own research. You're looking at the risks objective, Lee. And you're also finding people who maybe don't agree with the project and really see what they have to say. So, what does the future of time look like, because it's only been out for a few months. And, like I said, in the very beginning, I am very bullish on it. So, if we look at some of the recent thing that Danielle has tweeted about talking about how 20 21 was crazy, but, in 20 22, he really wants to get out of his Financial Comfort Zone, he wants to potentially add collectibles. He's looking at just the community as a whole.
23:11
And he wants to layer software development on top of the time Wonderland Protocol. And he's mentioned this in other interviews, How? He really wants there to be a strong gaming element.
23:21
He said he believes that time could be the currency in certain video games. He mentioned on Twitter how he wants to get more into the ... ecosystem, especially how we can improve it, and then the fact that he's involved in so many different projects, and he wants to create a whole ecosystem of how all of those different projects work together.
23:40
Again, you can also take a look at the Treasury and see exactly what sort of protocols and coins that the Treasury is investing in.
23:47
I'm also very bullish on Daniella as a whole. We can see that when it was announced, that he was getting involved in sushi swap to help them innovate. The coin jumped 10%. So I basically see him as kind of like the Elon Musk or the Steve Jobs of the ...
24:02
space right now, Another aspect I look at, is the community daniele himself has 242,000 followers. The Founder of Olympus has about 56,000.
24:13
Wonderland. Has 123,000 followers. And I believe Olympus Dalhousie about 140,000 right. Now I'm using that as a comparison because it is the second largest and was the first, the Discords for both of them are about the same. And the telegram for Wonderland right now is 36,000 while Olympus has about 11.
24:34
So what are the options that you have right now? Well, you can buy some time Coyne, stake it on the protocol.
24:40
You could mint some coin providing liquidity to the protocol. You could even wrap your memo and leverage that into a loan to buy more time, or some some other coin and a different protocol. That's a topic for another video.
24:52
But I think that the worst thing you can do is nothing, if you're nervous, just put a little bit of money. And make sure you are still doing your own research. Never invest more than you can afford to lose. But, I know for myself, I just thought it was crazy that I was watching this happen and not doing anything about it. Well, that is all I have for you today. I tried to cover as much as I possibly could, but I didn't want this to be two hours long, So if you still have more questions, please leave them in the comments, and maybe I will address them in another video. I just hope you have a better understanding of how this actually works, why it exists, and the types of benefits that you can gain from it, Especially on the passive income side, if you stuck around for this long. Thank you so much. I want you to leave a comment of your favorite video game of all time. I just think we really funny, if people are watching this video, and they're like, Wait, why are all the comments video games? All right, I am wishing you the best on your passive income journey.

This is NOT financial advice

Reference Materials

Daniele’s Twitter: https://twitter.com/danielesesta
Wonderland’s Twitter: https://twitter.com/Wonderland_fi
Route 2 FI Twitter: https://twitter.com/Route2FI
Time Wonderland: https://app.wonderland.money
Wonderland Docs: https://docs.wonderland.money
Wonderland Treasury: https://zapper.fi/bundle/0x….
The truth behind 87,000% APY DeFi: https://youtu.be/ii_c_ZfcU-w
Good explanation on the treasury: https://youtu.be/-GmFWX_5XIA
Other good guide: https://www.blocmates.com/wonderland-time-mim-memo
Great Twitter thread on $TIME: https://twitter.com/Route2FI/…

Good interview with Daniele: https://youtu.be/xlgMqsCEJfc
Another good guide: https://medium.com/@datnoid/passive-high-yield
Reddit Article: https://www.reddit.com/wonderland_time_too_good_to_be_true?

Interesting Video from a small investor: https://www.youtube.com/watch?v=u3LNRwn2AfM

Avalanche Wallet (Ledger friendly) – https://wallet.avax.network/
How to Bridge Token into Avalanche – https://medium.com/stakingbits/how-to-bridge-tokens…
Staking Tutorial – https://youtu.be/ev9yLW2IHfI

I might do my own staking tutorial if I have extra time. I have a slightly different way of doing things. 

Please leave a comment(s) below if you can help the community with your knowledge in the DeFi space.  

Leave a comment

Other Posts You Might Enjoy

Celsius

Research https://www.crunchbase.com/organization/celsius-network Celsius Wallet and CYBER SECURITY – How to keep your Celsius Wallet SAFE from HACKERS!

Read More »

Time Wonderland

This is a great video that goes over what Wonderland is all about. This is NOT financial advice Reference Materials Daniele’s Twitter: https://twitter.com/danielesestaWonderland’s Twitter: https://twitter.com/Wonderland_fi

Read More »