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Telos unveils T-Bonds, a fusion of DeFi and NFTs for unlocking liquidity

By Pavithra R

December 31, 2020

  • America
  • Telos

Douglas Horn, Chief Architect of the Telos blockchain

Telos, a high-capacity network and an active blockchain platform has announced the launch of T-Bond NFTs, a fusion of Decentralized Finance (DeFi) and Non-Fungible Tokens (NFTs) as a tool for unlocking liquidity.

T-Bonds are DeFi innovations that allow tokens to be locked into transferable NFTs which are then unlocked when the maturity date or other maturity conditions are met. T-Bond NFTs can be traded or sold on secondary markets for investment or as a yield hedge for tokens offering staking rewards, like U.S. Treasury Bonds or “T-Bills.” 

T-Bond NFTs are missioned to solve various challenges projects face when fundraising in the cryptocurrency ecosystem by allowing cryptocurrency projects to sell tokens that are locked in an NFT until the T-Bond’s maturity conditions are met. If a buyer wishes access to liquidity before the maturity condition is met, they can sell their NFT on any supported secondary market. A T-Bond NFT can change hands as per need until its lifespan is reached, at which time the current owner can unlock its liquidity. 

“T-Bond NFTs offer a new and powerful option for any project seeking funding based on future technical achievement. Back in the ICO boom and continuing still, far too many projects have raised funds only to see their token plummet in value and community support dwindle. T-Bond NFTs create an ecosystem where projects can raise funds through investors, who in turn have the freedom to sell their NFTs on the secondary market without impacting the token price. This facilitates a vastly more sustainable model by harnessing the new synergy between DeFi and NFTs,” said Douglas Horn, Chief Architect of the Telos blockchain. 

T-Bond NFTs are not technically a bond because it transfers ownership of the underlying tokens whenever the NFT is sold, so no debts are created. The first use of T-Bond NFTs will be by Telos itself as it uses existing TLOS reserves to create a large ETH/TLOS liquidity pool on Uniswap as part of the newly released TULIP plan.

Telos is a networked ecosystem enabling visionary leaders and communities to work together to build a new global economy. It is a third-generation blockchain platform for building fast, scalable distributed applications with feeless transactions.

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