Telos Boost dApp liquidity program

A Telos Fuel Program – Liquidity fuels growth

At Telos, the future of Web3 has never looked so bright, which is why the network is taking bold steps to accelerate the development of dApps and projects built on its platform. Telos recently announced its groundbreaking Fuel initiative, which aims to improve network composability by welcoming a range of DeFi protocols and project onboarding.

A key component of this initiative is Telos Boost, a bootstrapping liquidity grant program that has been allocated 3.2M TLOS. The program aims to encourage developers to create dApps or migrate to the Telos network and provide support for those currently residing on Telos.

Developers can submit their applications under the following link: https://fuel.telos.net/

However, we recommend reading this article to ensure you fully understand the eligibility criteria and applicable terms.

So what qualifies a project for the Telos Boost grant? Telos looks for applications and teams that demonstrate a clear vision, firm belief, appropriate traction and solid tokenomics. Selected applicants will receive up to $100,000 in liquidity support for their token in TLOS, first-hand introductions to exchanges, investors and partners, and full support from the Telos Foundation’s team of Web3 experts.

For a project to be eligible for Telos Boost, it must abide by and agree to the terms of the mutual agreement. In addition, each project must meet the minimum criteria listed below to qualify for the program:

Eligibility Criteria

1. The project should have a working product or a clear roadmap/timetable for its launch.
2. The project should have accurate tokenomics, documentation, and a well-defined rationale to explain token assignments.
3. All members of the project team must be doxed – no exceptions.
4. The project has at least 5,000 or more followers on major social media platforms.
5. The project team must have a clear strategy for collection and benefits.
6. The project team agrees to take an active part in the introduction of stock exchange listings and to make a contribution.
7. The project team agrees to share quarterly updates.

Projects that meet the above requirements can submit their applications to the Telos Boost team for consideration. By submitting all required information in as much detail as possible, applicants can ensure a speedy verification process.

The power of liquidity pools for emerging projects

The liquidity pools created from the Telos Boost initiative will enable the first crucial steps for a project’s community to participate in the DeFi composability of their token. Liquidity allows community members to trade a project’s token in a decentralized manner. In addition, users can also participate in providing liquidity while earning fees and agricultural incentives. It is also strongly recommended that all users and liquidity providers understand the risks associated with liquidity pools, namely volatile losses.

A temporary loss occurs when a token’s price shift causes your share of the liquidity pool to be worth less than your original deposit. It is temporary as the loss can be recovered when the token pair reverts to its original exchange rate.

Here are three ways volatile losses can occur in liquidity pools:

• When the price of a token increases dramatically,
• When the price of a token in a pair falls dramatically
• When the price of one token increases while the other token decreases.

The following tool will help you calculate the temporary loss:
https://whiteboardcrypto.com/impermanent-loss-calculator/

When a project is selected, the liquidity deal flow works as follows to ensure a balanced risk on both sides:

1. The project team agrees that its token price will not decrease by 50% or more within a week after the Liquidity Pool (LP) implementation. This ensures that the interests of the project team and their respective communities are aligned. It also ensures that the project team does not sell their tokens during this time.
2. If the token price drops by 50 percent within the first week, the project team will be notified immediately and prompted to take appropriate action quickly. For example, suppose it is discovered that the project team is engaging in bad business practices and needs to respond to repeated requests for information. In this case, the LP pool will be removed immediately and a public announcement will be made to prevent further losses.
3. The program will provide up to $100,000 in TLOS liquidity; the final number will be determined and agreed with the project team.
4. The allocated liquidity is tied up in the pool for a minimum of 6 months and a maximum of 12 months. The exact period is determined and agreed with the project team.
5. The project team provides the corresponding amount of its tokens to the liquidity team of the program. For example, if a project receives a $50,000 liquidity commitment from the program, the project team will provide $50,000 worth of native tokens to match in the liquidity pool.
6. The Boost Liquidity team adds the corresponding amount in TLOS and creates/adds it to the Liquidity Pool (LP) (e.g.: TLOS/BANANA).
7. The Boost Liquidity team will hold the LP tokens of the created pool for the term of the agreement.
8. When the agreed blocking period ends, either a new agreement is made or the LP tokens are withdrawn from the liquidity pool. The assets received in return are later distributed through the scenarios listed below in the next section.

EXIT SCENARIOS:

Risk analysis:

• The project team assumes the temporary risk of loss that its token loses value.
• Risk is encouraged if the project token outperforms TLOS. Profits are split evenly (50-50 split) and the liquidity team keeps the same amount of TLOS or TLOS value.
• If the project becomes inactive or the founders cannot be reached, there is a risk of a liquidity boost or the loss of TLOS funds.
• To avoid this result, regular synchronization every three months is recommended. These meetings allow teams to share updates, listing and growth strategy, roadmap, etc.
• Projects with tokens that are at increased risk of temporary loss will be notified within a week of the quarterly meeting and the LP will be removed and refunded.

Are you ready to get started and build a more equitable, decentralized and equitable future for DeFi users? To apply for a Telos Boost Scholarship and join us, click on the following link: https://fuel.telos.net/

About Telos

The Telos EVM is the most powerful and scalable Ethereum smart contract platform built for Web 3.0. Telos features a robust, ESG-compliant, third-generation evolutionary blockchain governance system, including smart contracts, advanced voting capabilities, and flexible and user-friendly fee models. In addition, Telos supports the blockchain ecosystem by serving as an incubator and accelerator for decentralized applications through development grants. Build with us.‍

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