DeFi, an attempt to solve centralization problems with CeFi, has struggled with several issues such as fluctuations in APY, liquidity constraints, impermanent loss, “rug pulls,” and user experience issues. Due to these issues, companies are attempting to bridge the ease of use of CeFi products with elements of governance and decentralization that DeFi offers. T-Fi is one of the examples of a platform seeking to bring together the advantages of both DeFi and CeFi.
In response to the issues revolving around DeFi, T-Fi, a new concept created by BOSAGORA foundation, launched in February with demand demonstrated from various countries around the world The demand exhibited for the T-Fi platform may have stemmed from current difficulties users face while utilizing existing DeFi applications as well as the intransparency around how yields are derived. T-Fi, short for True Finance, then, originated from a desire to assuage many users’ fears around interacting with existing DeFi platforms. T-Fi, firstly, enables users to sustain predictable returns on their capital by combining blockchain technology with investment opportunities into real world assets. The transparency behind granting users with knowledge around how to earn rewards via simple node operation, how to lend BOA tokens for a fixed return, or how to participate in STO projects listed on the T-Fi platform, can contribute to greater peace of mind for users, leading to wider adoption of the T-Fi platform.
Bosagora has launched the first ever T-Fi platform with adoption. The yield generated for users, in contrast with DeFi yields, is tangibly backed by stock market returns, investment into real assets through STO’s or through block rewards distributed during node operation. The platform gave users a guarantee of a 37.8% minimum APY that users can receive by staking their BOA through node operation and a 7% APY for its fixed return product which derive from returns from asset management firm FMway.
BOSAGORA’s relationship with FMway, a stock fund asset management service utilizing corporate fundamental data algorithms, differentiates FMway from DeFi alternatives. FMway’s back-test simulations of its stock market portfolio returns for the last 20 years illustrated an average annual return rate of 39.7%. T-Fi allows any user to invest in top funds that were previously only available to high net worth individuals, democratizing investment access. This contrasts from DeFi which creates APY’s via governance tokens or the demand for funds based on speculative demand from crypto short sellers. DeFi governance tokens also run the risk of being illiquid or remaining in the hands of a couple of large whales or investors capable of manipulating the governance token price.
BOSAGORA’s T-Fi roadmap details the platform extending beyond simply acting as a portal into accessing investments in order to target both crypto native and traditional investors. The team plans on transitioning T-Fi into a full fledged crypto exchange where users can buy and sell lending voucher tokens over time, providing additional utility to T-Fi users over time, a trend that many DeFi platforms have seen - for example, Aave, a crypto borrowing and lending platform, launching an AMM. The team is planning to release CoinNet within the third quarter to develop decentralized applications on the platform.
BOSAGORA, despite its departure from DeFi, has already created cross chain implementations and ways for BOA token holders to receive increased yield through DeFi platforms as well. Bosagora has newly issued 400,000 BEP-20-based BOA tokens allowing users of Binance Smart Chain to provide liquidity to the BOA-BNB pair on PancakeSwap, the largest DEX on Binance Smart Chain in return for .17% of the trading fees. Users of the T-Fi platform will receive increased utility through T-Fi’s integration with other applications on Binance Smart Chain. Bosagora will also receive the ability to target new audiences through its Binance Smart Chain integration.
T-Fi’s focus on community governance is another nod to DeFi’s innovations and benefits. BOSAGORA’s most recent announcement around VOTERA illustrates a governance system allowing for system proposals and funding proposals submitted for funding out of the Commons Budget. Those who participate will use activity templates and a wide catalog of features to foster the utmost standards of accountability and transparency. A minimum of 40,000 or more BOA will allow users to operate a node and participate in governance through the BOSAGORA Congress network.
T-Fi also works with companies such as CertiK, a smart contract auditor, and Chainlink, the leading oracle service connecting real world data with onchain data in order to make T-Fi as decentralized and secure as DeFi while still providing the benefit of investing in traditional opportunities. Chainlink, in particular, is important in linking real world data to the blockchain, one of the tenets of T-Fi. The fact that data about real world assets and returns is recorded on the blockchain on the T-Fi platform shows an effort toward an increased level of transparency compared to CeFi platforms.
Partnerships with Open Earth Foundation, a project developing a trusted global climate account system and Gongmanse, an edtech company, illustrate the potential for the T-Fi ecosystem to grow by increasing education among crypto natives by highlighting an alternative to DeFi which could assuage concerns around the current issues in the DeFi landscape. T-Fi, then, seeks to offer users the best of both worlds and to provide a blend of features from CeFi and DeFi in order to provide increased value to both the crypto community as well as mainstream investors.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.