Wonderland consists of the protocol-managed treasury, protocol-owned liquidity, minting, and high staking rewards. There are two strategies that users can take to participate in the Wonderland market: staking and minting (bonding). Minting is the process in blockchain to validate information, create a new block, and record this information into the blockchain.
Users stake their TIME tokens in return for more TIME tokens and to earn rebase rewards. Rebase rewards are the process through which your staked TIME balance increases automatically. These rebase rewards can vary based on the number of TIME staked in the protocol and the reward rate set by monetary policy.
Additionally, when you stake, TIME is locked, and you will receive an equal amount of MEMOries (staked TIME). MEMOries are transferable and can be composable with other DeFi protocols. On the contrary, when you unstake, you burn memories and receive an equal amount of TIME tokens.
Staking allows users to earn TIME through auto-compounding. New TIME tokens are minted from the treasury, most distributed to the stakers. If the increase in token balance overcomes the potential drop in price, stakers can attain a profit. Thus, the gain of stakers will come through auto-compounding balances.
On the other hand, minters provide LP tokens or MIM tokens in exchange for discounted TIME tokens. The main benefit of minters comes through price consistency. While users mint the TIME token, they sell the tokens to buy a bond from the protocol. A bond provides a future trade facility to the user on the protocol on a specific date.
The minter is given a return in the form of a TIME token. Thus the minter’s profit will depend on the price of TIME at the time the minted TIME matures. Minting is a cross between a fixed income product, a futures contract, and an option. Wonderland accumulates liquidity by allowing users to purchase bonds through minting. This liquidity is known as POL (proof of liquidity).