On Midweek the Telos blockchain announced the launch of a new tool designed to help depression-liquidity projects fundraise: a NFT product known every bit a "T-Bail."

In an interview with Cointelegraph, Douglas Horn — the author of the Telos whitepaper and the CEO of GoodBlock, a development company who assists with Telos core development — said that token-based fundraising is a tricky problem for both established and new projects.

"Many crypto projects face challenges similar to our ain. Telos never raised any coin in a token sale, merely many that have done ICOs run into their finances running low earlier their projects are market ready," he said. "These projects find themselves with token reserves they tin't sell without immediately tanking their prices as liquid tokens go on the marketplace."

One possible solution is Telos' new production: the T-Bond. T-Bonds are bundles of fungible tokens that have been locked into non-fungible tokens (NFTs) until a certain condition is met — for instance, the passage of a certain amount of fourth dimension or the launch of a mainnet.

As a issue of selling T-Bonds, projects can hypothetically enhance funds without tanking their token prices. Additionally, with the advent of yield-begetting tokens, T-Bonds accept the potential to become a tool for investors to hedge yield too:

"For tokens that have staking rewards, T-Bail NFTs could act similarly to a T-Bill as a hedge against irresolute rates," said Horn. "So that creates an exciting derivative-similar DeFi primitive."

Unsurprisingly, one of the first applications of T-Bonds will be helping Telos build liquidity for its own TLOS token. TLOS has had a brutal twelvemonth while much of the residuum of the blockchain ecosystem flourished, dropping from $.05 per token to $.02.

Horn, even so, says a lack of liquidity, not adoption, is the master barrier to price appreciation.

"Investors constantly come to the states asking about the project [...] only they accept not fabricated the large investments they would like considering there's not much liquidity, significant that their ain investments — even moderate investments in the tens of thousands of dollars — would create a 5-10X of the market price right there."

Every bit a solution, Telos has fatigued up a strategy it calls TULIP (Telos Uniswap Liquidity Implementation Plan): Telos will heighten funds through a T-Bond sale that will then be used to seed a liquidity puddle on Uniswap, a programme that draws inspiration from the successful Uniswap launch of Katalyo, a tokenized real estate dApp on Telos.

As a new bull market dawns and projects look to cash in, Horn also believes T-Bonds might well help a wide range of other projects with their funding woes as well.

"The same way that T-Bond NFTs help Telos level upwardly by solving our liquidity and volume bug nosotros believe nosotros can aid others. I remember it could create a really strong market for master sale fundraising followed by secondary market hedging."