Linking Real-World Assets like Stocks to DeFi can Thrust TVL Beyond $41 Billion

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The Bitcoin price, on Feb 19, rose to a new all-time high above $56k. 

Furthermore, according to trackers, the amount of funds under management by various decentralized finance (DeFi) protocols stands at over $41 billion.

Crypto Market’s Market Capitalization Exceeds $1.6 Trillion

Sharp crypto price increment and organic growth across different facets of blockchain, especially in smart contracting and in finance, highlight the level of grass-root demand. 

As of Feb 19, the market capitalization of all cryptocurrencies stood at over $1.6 trillion, a new record. Notably, with the parabolic rise of Bitcoin prices, the valuation of the first DeFi project (Bitcoin) is now over $1 trillion. It is roughly a tenth of gold’s estimated market cap of $7 trillion.

According to Anthony Scaramucci, the former White House Communications Director and the SkyBridge Capital co-founder, the Bitcoin price can reach $100k by the end of 2021. 

Beyond Bitcoin, analysts also say the Ethereum network–currently building and working on resolving the high Gas fees, is under-valued. 

Anthony Sassano says the coin can reach $10k in the medium term.

DeFi as a Liberating Tool

Parsing through the chatter and price predictions, blockchain as an emerging and practical technology is a financial emancipation tool. 

The melting of steel walls allowing those who couldn’t jump over regulatory or compliance hoops in traditional networks makes DeFi tick. 

In its basic form, the emerging sub-sector is a money Legos. Instruments and products previously under Wall Street control can be stacked using code to benefit ordinary people.

DeFi is in a state of a continuum, gradually evolving to suit user needs. According to DeFi project trackers, the earliest form of open finance revolved around trading and lending. Projects like Bancor and MakerDAO were among the first. 

As per a BTC PEERS report in October 2020, the MakerDAO lending protocol created $27 million in annualized earnings for token holders. 

However, the complexity of DeFi projects has been increasing over time. 

There are now over five broad categories of DeFi projects from derivatives trading, lending, and those deploying real-world assets to the blockchain. 

Despite benefits, the high Gas fee in Ethereum is forcing developers back to the table. 

Accordingly, creators are chalking up high performance and scalable as alternatives for the first smart contracting platform.

Bosagora Launches T-Fi

The Bosagora network is a Decentralized Autonomous Organization (DAO)-controlled blockchain. It aims to make the world a better place by using cryptocurrency (BOA) and contributing to the UN’s Sustainable Development Goals (SDG) in serving humanity. 

On Feb 17, 2021, they announced a new DeFi platform that operates on its network called T-Fi, an acronym for True Finance. They described T-Fi as a nextgen business model expanding on DeFi concepts. It focuses on finance by merging blockchain and the traditional economy.

T-Fi: Connecting DeFi to Real-World Assets

As part of their financial inclusion push, T-Fi will integrate Bosagora’s BOA tokens while also onboarding traditional finance services and linking assets like stocks and real estate for yield maximization. 

Notably, T-Fi fixes one of the main limitations in typical DeFi projects. Although built on the auspices of global reach and widespread access, their primary obstacle is the lack of access to traditional finance’s lifeblood—assets like stocks and real estate. 

Also, T-Fi will deviate from the complexities of revenue-generating mechanisms and bug fails that malicious groups can exploit. 

Users can participate in T-Fi by receiving BOA from node operation. Staking at least 40k BOA tokens and operating nodes on the Bosagora blockchain yields over 37 percent in the first year– returns higher than Cosmos (ATOM) and Tezos (XTZ) staking. 

Besides, because of Bosagora’s partnership with FMway, it is possible for users to unlock, lend, and earn fixed returns from staked BOA tokens. 

Users who can’t lend or stake participate by contributing in Security Token Offerings (STOs). By contributing using BOA tokens, they receive dividends and profits from shares of their investment in crowdfunding projects.

Chainlink Integration

Bosagora has also integrated with Chainlink—a blockchain-agnostic decentralized oracle provider, for secure and reliable pricing calculation of staking returns. 

By the end of 2021, they will complete the Bosagora Trust Contract. 

After that, they will connect to Oracle, completing T-Fi. Bosagora staking pool will use Chainlink oracles to issue fiat loans backed by BOA tokens, which will be invested in FMway.

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