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Telos’ ‘T-Bond’ NFTs intention to breathe liquidity life into initiatives younger and previous

01/03/2021

Telos hopes the brand new fundraising device will give a jolt to their platform, in addition to others

On Wednesday the Telos blockchain introduced the launch of a brand new device designed to assist low-liquidity initiatives fundraise: a NFT product generally known as a “T-Bond.” 

In an interview with Cointelegraph, Douglas Horn — the creator of the Telos whitepaper and the CEO of GoodBlock, a improvement firm who assists with Telos core improvement — mentioned that token-based fundraising is a tough downside for each established and new initiatives.

“Many crypto initiatives face challenges just like our personal. Telos by no means raised any cash in a token sale, however many who have completed ICOs see their funds working low earlier than their initiatives are market prepared,” he mentioned. “These initiatives discover themselves with token reserves they can not promote with out instantly tanking their costs as liquid tokens go available on the market.”

One attainable resolution is Telos’ new product: the T-Bond. T-Bonds are bundles of fungible tokens which have been locked into non-fungible tokens (NFTs) till a sure situation is met — as an illustration, the passage of a sure period of time or the launch of a mainnet.

On account of promoting T-Bonds, initiatives can hypothetically elevate funds with out tanking their token costs. Moreover, with the appearance of yield-bearing tokens, T-Bonds have the potential to grow to be a device for buyers to hedge yield as nicely:

“For tokens which have staking rewards, T-Bond NFTs may act equally to a T-Invoice as a hedge towards altering charges,” mentioned Horn. “In order that creates an thrilling derivative-like DeFi primitive.”

Unsurprisingly, one of many first functions of T-Bonds can be serving to Telos construct liquidity for its personal TLOS token. TLOS has had a brutal 12 months whereas a lot of the remainder of the blockchain ecosystem flourished, dropping from $.05 per token to $.02.

Horn, nonetheless, says a scarcity of liquidity, not adoption, is the first barrier to cost appreciation.

“Traders continuously come to us asking concerning the undertaking […] however they haven’t made the big investments they want as a result of there’s not a lot liquidity, that means that their very own investments — even average investments within the tens of 1000’s of {dollars} — would create a 5-10X of the market value proper there.”

As an answer, Telos has drawn up a method it calls TULIP (Telos Uniswap Liquidity Implementation Plan): Telos will elevate funds via a T-Bond sale that may then be used to seed a liquidity pool on Uniswap, a plan that pulls inspiration from the profitable Uniswap launch of Katalyo, a tokenized actual property dApp on Telos.

As a brand new bull market dawns and initiatives look to money in, Horn additionally believes T-Bonds may nicely assist a variety of different initiatives with their funding woes as nicely.

“The identical manner that T-Bond NFTs assist Telos stage up by fixing our liquidity and quantity issues we imagine we might help others. I believe it may create a extremely robust marketplace for main sale fundraising adopted by secondary market hedging.”