 Imagine this scenario. You walk into your bank to open up a brand new savings account. The bank teller smiles and says, sure, the current APY is 68,000%. Would this ever actually happen in a bank? What? Are you drunk? Would this happen in crypto? Maybe, but probably not. But that is the current APY that Time Wonderland is currently offering its users. The trick about APYs that it's just its selling point. The system's algorithm is set up to go down over time as we have seen with the one and only OG of the rebasing dals, Olympus. You can see that it started with over 200,000% and slowly has just continued to get lowered and lowered and lowered. So now everyone who's missed out on the high APYs that Olympus was giving out is aping into Time Wonderland. So what we're going to do in today's video is uncover the truth about how Time Wonderland works, whether or not it's a Ponzi scheme. How does it make money and is it actually sustainable? And of course, if it's worth investing in or not, let's dive right in. So the question that you probably have is what is Wonderland? So Time Wonderland was launched back in September of 2021 by a mostly anonymous team. Now I say mostly because we do know who one of the founders of the project is. That is Daniele Cesta. And we will come back and talk a little bit more about who he is and what he's done. So Time 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 such as MIM or Time Avax LP tokens in the Wonderland Treasury. This gives it an intrinsic value that it cannot fall below. Time is indefinitely backed one-to-one with MIM although the price of time does trade at a premium and we will explain a little bit more about how that works very soon. Premium is completely up to the open market and boils down to supply and demand. So Wonderland is actually a copy of another DeFi project, Olympus Dow, whose aim was to create a decentralized reserve currency for the world. Since everything built on blockchains are open source and transparent it's pretty easy for anyone to pick up a project's code, copy it and create a new protocol while modifying some parts of the code. This is exactly how Wonderland was birthed from Olympus Dow. So to understand Wonderland let's do a little backtrack and explore the logic behind its parent project Olympus Dow. So Olympus Dow was created in response to the problem of lack of a true sustainable store of value in the cryptocurrency world. The ever fluctuating market has made it difficult and almost impossible to obtain any form of value stability in the crypto world. In an attempt to curb this stablecoins were invented which were pegged to currency such as the US dollar. So for instance the stablecoin USDC is always equal to 1 US dollar and it would remain so even in the event of market volatility. However there still remain the threat of inflation of the currency to which the crypto was pegged. So if the US dollar was inflated like it always is you would actually be losing your purchasing power by holding these stablecoins. This is where Olympus Dow's currency ohm was to come to the rescue. Backed by a treasury of other decentralized assets ohms value would be better retained. A simple logic to understand this better would be selling someone a gold bar in exchange for a token. You can always return this token and retrieve your gold bars so the value of the token is always retained. So the key innovation behind Olympus Dow which has drawn the attention of and birthed multiple other protocols including of course Time Wonderland is the idea of protocol owned liquidity. Instead of the traditional DeFi method where a project offers rewards when people provide them with assets Olympus Dow introduces what's called bonding. This is where they actually sell their own coins for assets to people at a discount and stores it in its treasury. At a high level this is an improvement because when traditional DeFi projects lower their rewards people would move their assets and liquidity away into other projects. Of course the result of this would be the prices crashing of those DeFi projects. So now with this logic we can now better understand the brain map behind Time Wonderland. Wonderland appears to be an improved version of the Olympus Dow project with the similar features but of course a little variability. As a fork on the Avalanche blockchain barriers to entry for Wonderland is a lot lower compared to Olympus Dow which is on the theorem blockchain and has more costly gas fees just to participate. Also according to the founder of Wonderland Deniali Sesta the plan is to build up the treasury with assets to centralize it by setting up a Dow and then become a VC fund that invests in gaming and NFTs. And with that in mind today is the day that they actually did their first VC deal. You can see on his Twitter which he is very active on. He posted today about the first Wonderland seed investment which is BetSwapGG. So Deniali has a strong reputation in the DeFi space from building two other prestigious projects Abbacadabra and Popsicle Finance. He also just recently took an advisory role over at SushiSwap. So I feel like it is pretty safe to tag his Time Wonderland project as a credible venture. Alright so some questions you probably still have is how does Time Wonderland returns work? How is it sustainable right? So for basics the APY you earn comes from staking time the official Wonderland token. Staking simply means to lock your time tokens on Wonderland to earn rebase rewards. So the reward is accumulated automatically and shared in time tokens. So the current reward rate is around 1.8% per day from a compounded 0.597% three times a day every eight hours. So you can see the ROI on a five day period is about 9.33% as of this moment. Those are insane numbers I know. So of course to be able to pay this out the protocol has to sell enough bonds to cover this. Bond sales is one of the avenues of revenue for time. What time does is it incentivizes the purchase of bonds by giving users a discount on the price of time. The user then receives their quoted amount of time over a five day period. The treasury then receives the funds used to mint the time. The Dow also receives an equal amount of time as profit. Then of course an equal amount of this time is placed into the distribution contract that allows stakers to benefit from the new time being minted. Currently there are about four or five different assets that can be used to bond time. Time Avax LP wrapped Avax Time MIM LP MIM and Ethereum. Since bonding is basically buying time at a lower price the discounted price is the return of investment. Generally bonding makes no sense unless the ROI is greater than buying time at the market price for staking. Currently the ROI for staking time as you guys saw is around 9.3% over a five day period. While if you currently are looking to mint at a discount you can see that the best offer right now is a 3.82% over the same five day period. So right now it makes more sense to just buy at market price and stake it because you're going to end up making more money. Keep in mind that these numbers are all constantly changing. All the assets from bonding are channeled toward the building of the Wonderland Treasury. So other than bonding the other ways that time Wonderland makes revenue is through providing liquidity and of course yield farming. So to break down the way that bonding works a little bit more in depth Wonderland sells time at a discount for assets. Every time costs Wonderland $1 to mint. Remember that is its intrinsic value that's backed by decentralized assets. So because Wonderland is minting for $1 and selling at a premium the protocol makes a significant profit from the spread. So once you buy a bond or mint time time is given to the bond purchaser over a five day period this is done on purpose to reduce sell pressure. The bond's prices are determined by the market demand. So if there's more demand then prices are higher that means that the discounts are less. If there's less demand that means that the prices are lower meaning that the discounts are higher on the bond purchases. So to break it down even further let's do an example. If time is selling for $3,100 then Wonderland could set the bond price at a discount for $3,000. So if the user buys the bond for $30,000 or he bought 10 time instead of buying at the market price which would cost him $31,000. So Wonderland mints 10 time for the user 10 time for doubt expenses which means like partnerships audits any other business expenses. So in this deal Wonderland would make $30,000 minus the $10 that it cost him to mint the 10 minus the $10 that they use for expenses that gives them a total profit of $29,980. This money is now added to its treasury and used to pay out stakers it's used to yield farm and for all the other ventures that time Wonderland goes on. So the second way that they make money is through protocol owned liquidity. Wonderland owns basically 99% of its own liquidity. Liquidity simply means the ease in which an asset can be bought or sold. The old way for protocols to do it was to pay for liquidity with incentives. Now instead of doing that Wonderland took the idea from Olympus Dow to actually generate revenue by being the only liquidity provider. So whether you buy or sell Wonderland is going to make money off your trade. And the last one that we're going to talk about is treasury assets. So anything that's not being used as backing for the time tokens can be used for yield farming. This of course it put in some low yield safe passive income investments to just generate some small profits. Now of course time is now also entering its to its next part of its roadmap which is becoming a VC for startups getting into NFTs and gaming. So price is irrelevant in the long term. Although price predictions for time may be tricky prices are not expected to fall below $1,324 which is the current backing of one time. The backing is derived from the treasury balance which consists of a basket of assets like the gold bar illustration that I used earlier. So the main idea here is that your time balance will grow exponentially over time thanks to the power of compounding. So as an example let's say that you buy time for $400 now and the market decides that in one year time the intrinsic value of time is $2. So that's basically like a 99% drop right? Well assuming that a daily compound interest rate of 2% your balance would have grown from one time to about 1,377 time by the end of the year which is not worth $2,754. That is a cool $2,354 profit. So by now you should understand that you are paying a premium for time now so that in exchange you get a long term benefit. Thus you should have a long term horizon to allow your time balance to grow exponentially and make this a worthwhile investment. Alright so now this is my favorite part. Let's talk about game theory. Just like its parent project Olympus Dow, Wonderland uses the game theory to create an incentive system that rewards certain behaviors and discourages other behaviors. You might have heard or seen Olympus Dow's 3 comma 3 while time uses top hat comma top hat. So if we take a look at this picture right here this is a basic example of game theory. So what this simply means is that if we all stake we will have the most beneficial outcome doing anything else is not the most optimal strategy. So that's why top hat comma top hat is the greenest and of course selling is the brownest because nobody likes people who sell. So what exactly is game theory? Game theory basically means the set of outcomes that can occur given a set of options for two players. So this is similar to the prisoner's dilemma. The prisoner's dilemma is a great thought experiment that states that for the best possible outcome in a group individuals must cooperate together. So in this thought experiment you can see here that if they both confess they get five years which is good for no one. If one confesses and the other doesn't then one gets free the other one gets 20 years. If the other confesses and the other one doesn't the same thing flipped over but if they both choose to not confess they only get one year each which is the best possible outcome for them together. So the same theory applies to time and Olympus. The best outcome is if everyone stake while the worst outcome is if everyone sells. The incentives are aligned to favor staking against selling so everyone receives an optimal benefit if everyone chooses to stake rather than sell. With this everyone receives the best possible result. The returns are actually so good that any price depreciation will be completely offset over time. That's why if you're thinking to invest into Time Wonderland or Olympus Dow make sure that your whole time is more of a long term investment because if not then it defeats the purpose of the rewards as if the price depreciates you're not going to get the rewards to offset it. So to me Time Wonderland seems to be a sustainable investment from the looks of things as long as they continue to innovate and build on their success. Danielli and the rest of the team has shown that they will continue to innovate with new partnerships bringing in more projects that provide value to the entire ecosystem like Sushi Swap and new projects that will be launched very soon. As long as they do this and continue to build up their treasury they should be able to sustain the high annual percentage yield which of course is automatically lowered as the project meets certain thresholds similar to its parent project Olympus Dow which started with insane rates back in February of 2021 but has now cut down to about 4,000% APY. The current APY for Time Wonderland currently sits around 66, 67,000% and I am personally invested in this project and I will be showing you guys exactly how it ends up turning out for me. So in conclusion is Time Wonderland a Ponzi scheme? Well I guess it depends on who you ask although the offers look somewhat too good to be true that's kind of the beauty of investing in crypto. So for starters don't invest more than you're willing to lose. It seems legitimate and possibly sustainable but at the end of the day it's an experiment. Nobody knows how this will end and that's a general principle when embarking on an investment in cryptocurrencies or really any other investment at all. Time Wonderland is still an early project and as such needs some time to flourish. Final thing that I like to note is that unlike Olympus Dow Time Wonderland has not yet been audited so make sure to keep your risk low if you do intend on trying it out. Thank you guys so much for watching this video if you enjoyed it please make sure to subscribe to the channel if you're not subscribed yet turn on those notifications so you guys do not miss any of these videos and of course guys smash that like button let's get this video up there in the likes. Next I'll be putting up a tutorial on Time Wonderland how to use it and what my results look like so far. If you have any questions about anything that we covered in this video today drop it in the comments I'll be more than happy to respond. All right guys thank you so much I will see you on the next one as always peace and love.