Throughout the last few years, we have seen massive amounts of digital assets enter the market. Most of them make promises during their listing. Meanwhile, a few of them live off to traders’ expectations. Asides from Bitcoin, most digital assets can only boast of a few gains all through the year. One token that is performing well in the market is the TIME token. Some months ago, Wonderland was in the headlines after it made massive bull surges to touch past $2,000 in value. Presently, the asset sells at $6,842, seeing a rise of 4.27% in the last 24 hours. This is one single reason why most traders are looking to add the asset to their portfolio. In this article, we will be looking at Wonderland and why you should add it to your portfolio.
What Is Wonderland?
Wonderland is a protocol that was designed on the Avalanche network. It is the first-ever decentralized protocol on the network. Its native token, TIME, is backed by a pool of other tokens in its treasury. That gives the TIME token intrinsic value, which means its price cannot fall. Wonderland provides users with economic and game theory dynamics. This is achievable through the staking and minting of the token.
The developers say their main aim is to build a currency system that several policies would control. By so doing, the behavior of the TIME token will be consistent and stable. In this regard, users can use the TIME token for either exchange or store funds. The bottom line is that the developers want the system to be used to create wealth.
How Does Wonderland Work?
Wonderland has its treasury that the developers of the protocol manage. Asides from that, it also has liquidity and minting that they also manage. All these, coupled with its massive rewards from staking, are some of the mechanisms used to control its supply expansion. The developers make use of minting to generate profits to be used in the protocol. After this, the treasury mints TIME tokens from the profits and rewards stakers. The LP bond helps the developers keep the protocol safe through accumulating liquidity.
How To Benefit From Wonderland
One benefit of Wonderland for stakers is the supply growth. After the protocol mints tokens from the treasury, they are shared among stakers. This means that stakers can generate rewards according to how many tokens they have staked. With this model, one thing that is of concern is the price exposure. This means that if the number of tokens in their balance is more than the drop in the asset price, they can make massive profits.
On the other hand, Miners get their benefits from the stability in the price of the TIME token. After minters commit their capitals beforehand, the rewards they will earn are fixed. This means that their rewards will depend on the TIME token’s price from when it matured to minted. With this, miners will be able to earn rewards provided the price of the token increase or remain the same from when it was mined.
Why Should I Buy The Time Token?
One of the most rewarding move any trader can make is buying and staking the TIME token. With that, you own a part of the market cap supply, which is always close to a constant. This is because when you stake and the circulating supply increases, the TIME balance your stake increases. So this means that if you can purchase and stake TIME when its market cap is very low, you are open to profits when it shoots up.
When users stake their TIME tokens, they exchange them for MEMOries. The MEMOries are transferable among other DeFi protocols. If a trader chooses to unstake his TIME tokens, he will burn the MEMOries and receive the same amount of TIME tokens. However, all unstaked TIME tokens will stop generating rewards.
Conclusion
Even though TIME, like other assets in the DeFi market, is very volatile, it is rewarding. This is going by the staking rewards explained above. Not only is staking through the protocol straightforward, but traders are also open to rewards. Also, traders should stake their TIME tokens for a long time. This is because if the price of TIME drops after a trader buys, he can cover up for that through the increase in his balance.