Hourglass｜Liquidity Protocol Specialized for Time-Bound Semi-Fungible Tokens

Time-bound token (TBT)

Hourglass is a liquidity protocol specializing in time-bound semi-fungible tokens (TBTs), aiming to bring new value to the DeFi market. The early days of DeFi were dominated by fungible tokens, with applications like Uniswap, Aave, and MakerDao driving its success. On the other hand, non-fungible tokens (NFTs) have grown primarily around the trading of collectibles and artwork. However, Hourglass focuses on "time-bound" tokens, which are different from both.

Hourglass's main strength lies in its ability to allow users to "time boost" their assets, issuing TBTs that yield the underlying asset and returns after a specific period. These tokens are typically used in time-bound liquidity provision and lending markets. In particular, leveraging time-bound liquidity in decentralized exchanges (DEXs), lending markets, stablecoins, asset management institutions, real-world asset (RWA) providers, liquid staking protocols, and insurance protocols can improve UX, enhance long-term security, and better align assets and liabilities.

How Hourglass Works

In Hourglass Boost, Combined Tokens (CTs) are issued based on deposited tokens (UTs). CTs represent reward-multiplied UTs deposited in a time-limited pool. CTs can be exchanged 1:1 for UTs at maturity. While staked, CT holders can receive rewards associated with their CTs. If a CT is transferred before maturity, the rewards up to the transfer point are given to the transferor, and subsequent rewards are given to the transferee.

CTs are divisible and can be decomposed into Principal Tokens (PTs) and Point Yield Tokens (PYTs). Similarly, 1 PT and 1 PYT can be combined to resynthesize 1 CT.

• Principal Token (PT): Can be exchanged 1:1 for UT at maturity. PT holders are not entitled to receive rewards associated with the CT.
• Point Yield Token (PYT): Entitles the holder to receive all rewards associated with the CT. PYT holders receive rewards up to the point of transfer, even if transferred before maturity.

Features of Hourglass

• Hourglass Boost: Users receive TBTs by "time boosting" their assets, and the protocol can incentivize long-term users through these tokens. This acts as a preventative measure against bank runs, similar to those seen in traditional financial systems.
• Hourglass RFQ: This is an intent-based platform that provides liquidity for time-bound and semi-fungible tokens, directly connecting protocols and market makers, enabling efficient price discovery and liquidity provision.

Furthermore, unlike traditional DeFi applications that rely on liquidity pools, Hourglass can provide liquidity flexibly and efficiently by using an RFQ system. This mechanism allows users to trade tokens with various durations centrally, significantly improving capital efficiency.

Official documentation is here

Hourglass raised $4.2 million in a seed round from investors including Coinbase Ventures and TRIBE CAPITAL.

Currently, the Hourglass project has not released detailed information about the airdrop, but a reward program related to time-bound tokens and liquidity provision is planned. Pay attention to future official announcements regarding token allocation and reward systems. Participating in the Hourglass ecosystem increases the likelihood of receiving returns and incentives.

Points Preseason

Hourglass Points Preseason is an incentive campaign for users on the platform. It is important to note that preseason points are different from airdrop points, and this mechanism increases rewards in future point seasons. Potential future rewards for users include:

• Increased rewards in future point seasons eligible for airdrops
• Subsidized platform fees
• Early access to boosted products
• Early community collectibles (both physical and digital)

Summary of Steps

1. Connect your wallet on the official website
2. Press Earn Now
3. Buy Point Yield Tokens (PYTs) to maximize points per dollar
4. Maximize LRT rewards by time boosting
5. Refer friends

Detailed Steps with Images

1. Connect your wallet on the official website

2. Press Earn Now

3. Buy Point Yield Tokens (PYTs) to maximize points per dollar

4. Maximize LRT rewards by time boosting

5. Refer friends