Telos, a world blockchain platform based mostly within the UK, introduced on Wednesday the launch of T-Bond Non-Fungible Tokens (NFTs), which is described as a “new fusion” of decentralized finance (DeFi) and NFTs as a instrument for unlocking liquidity.
“T-Bonds are an innovation in DeFi that permit tokens to be locked into transferable NFTs which might be then unlocked when the maturity date or different maturity circumstances are met. These T-Bond NFTs could be bought or traded on secondary markets for funding or as a yield hedge for tokens providing staking rewards, very like U.S. Treasury Bonds or ’T-Payments.’”
Whereas sharing particulars about T-Bond, Douglas Horn, Chief Architect of the Telos blockchain, said:
“T-Bond NFTs provide a brand new and highly effective choice for any challenge in search of funding based mostly on future technical achievement. Again within the ICO increase and persevering with nonetheless, far too many tasks have raised funds solely to see their token plummet in worth and neighborhood assist dwindle. T-Bond NFTs create an ecosystem the place tasks can elevate funds by traders, who in flip have the liberty to promote their NFTs on the secondary market with out impacting the token worth. This facilitates a vastly extra sustainable mannequin by harnessing the brand new synergy between DeFi and NFTs.”
Telos additional revealed that T-Bonds have a lifecycle with three intervals: Creation, Maintain/Commerce, and Maturity. DAOs or crypto tasks of any variety can concern T-Bonds. T-Bond NFTs are bought by their issuer to an preliminary purchaser for an additional foreign money at a reduction to compensate the issuer for the illiquid nature of the underlying tokens.
“T-Bond NFTs should not technically a bond, as a result of in contrast to a bond, which is a debt instrument, a T-Bond transfers possession of the underlying tokens each time the NFT is bought, so there may be by no means a debt created. Like bonds, the valuation of a T-Bond NFT is the perform of its face worth associated to its anticipated time to succeed in maturity relative to various types of yield.”
The primary use of T-Bond NFTs might be by Telos itself because it makes use of present TLOS reserves to create a big ETH/TLOS liquidity pool on Uniswap as a part of the newly launched TULIP plan. The sale might be organized inside two weeks.