A South Korean public blockchain platform, Bosagora, unveiled the blueprint of ‘T-Fi’ on February 17 with it’s launch slated to be on February 22. Investors will be able to participate in T-Fi lending through T-Fi Labs starting on the 22nd.
'T-Fi’, short for True Finance, is a DeFi financial model which bridges blockchain technology with the traditional economy. It’s a business model that facilitates the use of BOA tokens, Bosagora’s native token, with traditional financial assets such as stocks and real estate to enable stable lucrative returns for the investors and users involved.
T-Fi proposes to remove DeFi’s flaws
Even though Decentralised Finance (DeFi) platforms and applications have been game-changing innovations within digital finance, they surely have their limitations. The main limitation being that most of the DeFi platforms and applications currently operate within the Ethereum Ecosystem and thus are far from being universal. Most other DeFi lending models operate using ERC-20 tokens with revenue models which are complicated and difficult to access for retail investors. These factors, combined with high gas fees issues in the Ethereum blockchain, have entailed that fewer retail investors have been involved in DeFi protocols than whales.
While most DeFi lending protocols focus on lending protocols themselves and transactions of ERC tokens, it makes them vulnerable to blind spots in the profit mechanism and bugs in smart contracts as Consensys themselves warn against in their ‘Ethereum Smart Contract Security Best Practices’ Guide. Instead, T-Fi can make investments in various real economic assets like stocks and real estate, this is bound to leave lesser scope for manipulations thus luring universal participation even from market participants who might be averse to crypto assets in their portfolio.
T-Fi’s economic ecosystem explained
The T-Fi economic ecosystem aims to enable participants to generate profits in three main ways. First through rewards for block generation by operating nodes of BOA. Second through fixed interest income generated by lending of staked BOA assets. Third through income dividends for taking part in security token offering (STO) projects that are exclusively partnered with Bosagora.