Temporal

Trade Protected Perps. Launching soon ⛺️

[Rohan @rohan_badade_]

speculative: just as banks use ‘asset liability mismatch’ / ‘cash flow management’ to create leverage (‘fractional reserve’); trading ‘vertical spreads’ (‘perp price ranges / bands’ on @TemporalFinance) would allow perp traders to systematically take on more leverage

[Temporal @TemporalFinance]

Temporal ships primitives that allow the entire risk surface to be traded efficiently

[Varun @0xNowhereMan]

🎯

- Traders want to express views beyond direction. Path, speed, curvature, vol, everything must be tradable

- Can’t import TradFi systems as is on-chain. This is critical for option-like instruments. An order-book setup shards every strike, every expiry into its own micro-market. Liquidity dies before it gets a chance

Temporal ships primitives that allow the entire risk surface to be traded efficiently

[Varun @0xNowhereMan]

Perps aren’t “hold forever”. Path, vol & funding crush expected time to liq. (see heatmaps at the end of ren's article)

Most levered views die before the thesis plays out

Temporal turns perps into tradable bands of your choosing. This converts uncontrolled funding into a well defined budget – extending the life of your trade

[Temporal @TemporalFinance]

@DriftProtocol Want to win? Only through Solana DeFi

[Temporal @TemporalFinance]

Our industry is built by unconventional people 🫡

Its why DeFi has such a high density of innovation

[Rohan @rohan_badade_]

👋 dropped out after high school —> self-learnt finance basics —> worked unpaid couple years at a small investment bank —> cold emailed 300 CEOs —> got into Guggenheim Investments at 20 —> @siddarthpatil got me into DeFi —> founded @TemporalFinance with my bro @0xNonAbelian —> backed by @OVioHQ

[Temporal @TemporalFinance]

Simplify

Even TradFi wants that needs that. Temporal will be delivering just that.

[Varun @0xNowhereMan]

its funny, interest rate derivatives today feel v complicated

but they are actually simplifications of incredibly complex instruments used way back: parallel loans and currency swaps.

simplification is the secular trend in finance. it went parallel loans -> currency swaps -> IRDs

@TemporalFinance 's innovation respects the trend and further simplifies IRDs.

allowing even TradFi to do more than they currently can

[Temporal @TemporalFinance]

🏗️

[Varun @0xNowhereMan]

@weremeow 🏗️ cause it’s heads down build mode at @TemporalFinance

[Rohan @rohan_badade_]

@Panoptic_xyz we know it takes a while to build new primitives, but they’re worth the wait 🔥

[Rohan @rohan_badade_]

OTC Derivatives will be the next wave of RWA / tokenisation

@TemporalFinance makes them fungible, liquid, and effortlessly tradable on-chain

[Rohan @rohan_badade_]

Evolution From Discrete To Continuous Markets 🧵

1/ TradFi Markets Are 'Discrete' 👾

Exchanges have separate markets for:

- Futures contracts with various expiries

- Options contracts with various combinations of expiry & strike price

[Temporal @TemporalFinance]

Back to innovating

https://t.co/46qCVwYKwK

[Mercury @TraderMercury]

we’re only just getting started.

[Temporal @TemporalFinance]

@0xNonAbelian You know founder mode is on when all you think of is how to go hard not go home

[Rohan @rohan_badade_]

@_marekSan_ @TemporalFinance is bringing OTC interest-rate derivatives on-chain - institutional DeFi’s missing link

[Temporal @TemporalFinance]

What Perpetual Liquidity Pools, a Temporal innovation, can do. TL;DR -

Advantages for LPs:

- Higher fees
- Dramatically simpler UX 😌

Advantages for Traders:

- Deeper pools (= ⬇️ slippage)
- Duration flexibility (no expensive otc deals reqd.)

[Varun @0xNowhereMan]

e.g. of perpetual liquidity pools (PLP) in yield trading: a PLP serves as a counterparty to trades in PT / YT of a given asset, with any duration.

So 1 sUSDe pool serves PT / YT trades of all durations (57d, 90d,...)

This way, an LP doesn’t spread their liquidity across a multiple pools of the same asset, risking lower fees & the pain of rolling over.

The trader gets a deeper pool to trade against & duration flexibility.

[Temporal @TemporalFinance]

@SuperteamAE gm 🫡

[Temporal @TemporalFinance]

LPs on the average liquidity pool

vs.

LPs on Temporal’s perpetual liquidity pool

#outofstealthsoon

[Temporal @TemporalFinance]

Strapped in and ready to make this a reality

[Rohan @rohan_badade_]

@TemporalFinance @0xNonAbelian we’re locked in 💪

[Temporal @TemporalFinance]

@0xKika @Worm_Alt gworm! hope week go brrr

[Temporal @TemporalFinance]

There is so much to share, this is just the start!

Being a part of the @wormhole Outlier Base Camp ⛺️ helped the Temporal team create a strong foundation.

A special shout out to @jonjonflo_ , @zkElliot, @0xluude, @Scott_0x, and @eunika_sot for their unparalleled support

[Temporal @TemporalFinance]

Yield & Derivative contracts, in both TradFi and DeFi markets, are BROKEN

Every maturity is siloed into its own pool / book / market. E.g.: a 30d and a 60d futures contract for the SAME asset will trade on separate order books / pools.

[Temporal @TemporalFinance]

This thread covers the basics of Temporal. An overview of it.

Going forward, we’ll keep sharing more about the architecture, features, the modularized front-end for dApps to utilize (p.s its as simple as Uniswap), etc.