Telos, which is one of the most active public blockchain networks according to Blocktivity data, with over 500,000 accounts, has introduced an innovative plan in order to bring liquidity and added value to the TLOS DLT ecosystem: The Telos Uniswap Liquidity Implementation Plan (TULIP).
According to a release shared with Crowdfund Insider, the initiative is aimed at bridging the gap between the Telos and Ethereum (ETH) blockchain communities while “doubling down” on its decentralized finance (DeFi) capabilities.
Telos will be issuing an ERC-20 compliant TLOS token which will be available for presale in early January 2021 with the exact date to be confirmed on the official Telos website “48 hours before the sale commences.”
The announcement noted that this will help with securing funds for Telos in order to list on Uniswap with “a strong, low-slippage pool of TLOS (ERC-20) and ETH.” The remaining funds will aim to support liquidity on other digital asset exchanges and also to pay for listing fees on various centralized crypto exchanges.
As noted in the release:
“Telos has grown [considerably] since its mainnet launch two years ago, but liquidity of the TLOS token markets remains low, impeding the growth of the network. This is the direct result of the project’s successful grassroots launch, which raised no outside funding.”
Telos planned to find the “best” exchange deals it could afford, however, the result is “simply low liquidity on small exchanges.” Potential buyers come to Telos following its real-world use cases, however, the “friction of buying TLOS on limited exchanges has inhibited many,” the developer claims.
Douglas Horn, Telos Chief Architect, stated:
“Telos has been a hotbed of activity since launching in 2018, now welcoming 30,000 new accounts per month and countless developers to its network. We are proud to have accomplished this all as a fully decentralized ecosystem with no outside funding and no whale accounts.”
Horn added that Telos recognizes the potential that the Ethereum and DeFi investor ecosystem might have, and also realizes the need to “go where the buyers are as well as support Ethereum users who are drawn to Telos for its fast, feeless transactions and features like Telos (Ethereum Virtual Machine) EVM or Telos Decide.”
Horn also mentioned that their TULIP plan is consistent with the Telos philosophy or goal of making regular contributions to the larger blockchain or distributed ledger tech (DLT) sector.
DeFi platforms and Automated Market Makers such as Uniswap offer a good opportunity to help with overcoming liquidity issues such as those experienced by Telos, the release noted. They require “no (or very low) listing fees, yet their trading volumes can be as high as top exchanges,” the announcement confirmed.
Before listing on Uniswap, Telos intends to provide its ERC-20 TLOS token with “multiple pre-sale purchasing pools of limited numbers of tokens sold at increasing prices, with a higher initial trading price anticipated once the ETH/TLOS Uniswap pool goes live.”
This will provide an opportunity for longtime Telos supporters and Ethereum traders or investors to “get in on the ground level of Telos’ next phase of growth,” the announcement noted. It added that there’ll be “a 1-3 day period before the bridge opens for Telos users to transfer their existing TLOS to the 1:1 pegged ERC-20 TLOS.”
Telos intends to sell 50-80 million TLOS tokens from “the ‘tlosrecovery’ account (recovered from 2018 airdrop accounts that remained unused after a year), resulting in a target of $2.5-$5 million in funds raised,” the release confirmed. It also mentioned that after the TLOS token presale is finalized, most of the Ethereum proceeds will be used to “create a large permanent ETH-TLOS liquidity pool on Uniswap.” Additionally, the tokens offered by Telos will be “locked with a smart contract and multisig control to ensure long-term liquidity.”
“With sufficient liquidity, real price discovery for TLOS can finally occur, and Telos can become a major player in the booming DeFi ecosystem. We hope that through this effort, Telos continues to foster a network where all are welcome to realize blockchain technology’s enormous potential.”
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