The foundation behind Telos, an EVM-enabled smart contract platform, has given its blessing to an incentive program worth 54 million TLOS designed to expand the Telos ecosystem. The project is kicking off its multi-stage strategy to infuse new funds into the nascent DeFi ecosystem. The end goal is to have the next wave of Web3 applications built on Telos. This requires a thriving, comprehensive DeFi ecosystem that can entice skilled developers.
The three phases of Telos’ revolution
Implementation will take place in three phases. In the first stage, which is foundational in nature, the team implements the technical solutions essential for expansion. The TEDP3 proposal will accomplish this by freeing up funding from other proposals and setting the basis for the incentive scheme.
TLOS liquid staking software and Gnosis Safe rollout are part of the pre-planning. By using the staking software, TLOS holders can connect their tokens to the tEVM ecosystem. This allows the usage of tokens in DeFi while still collecting staking returns. In this case, the liquid sTLOS tokens will make it possible. On the other hand, teams will handle their business in a more secure manner with Gnosis Safe, a multisig wallet. For this new phase, Telos Foundation has brought on a devoted Head of DeFi, someone who has already grown a protocol to over $500 million in TVL.
The second stage involves activating the liquidity incentives if and when TEDP is approved and preparations are complete. Providers of liquidity on decentralized exchanges (DEXs), yield farmers, users of yield aggregators, and others will all be eligible for TLOS bonuses. Token bridges from other chains will help bring in new users, and the ecosystem’s liquidity must be high enough for them to stay.
The third phase focuses on gaining momentum, which is essential for the liquidity incentives to pay off. In this next stage, the ecosystem will leverage the newly available funds to develop further products for the DeFi stack. In this space, there will be the launching of additional Telos-native projects. That will involve expanding the ecosystem to include use cases like stablecoins, launchpads, order book decentralized exchanges, and more.