TCI derivative evolution concept and more

  2. Main concerns

Now that we have published our first smart TCI derivative (sNSBT_TCI), it is a good time to explain our concept of how the organic market could shape up in the future.


  • TCI stands for Tokenized Compound Interest
  • BA stands for Base Asset
  • TCI increases in price relative to BA
  • TCI Supply = TCI Demand
  • The price of TCI in a smart contract is always guaranteed by the supply of BA in the vault
  • Tokenized Compound will benefit from DeFi products and vice versa
  • The Heraclitus swap platform will help regulate the market price of TCI

TCI stands for Tokenized Compound Interest. This means that the value of the compound interest is included in the value of the TCI token. This brings a number of advantages over traditional compound interest.

Yes, you understand that right! The compound interest is incorporated into the value of the tradable token, regularly increasing its value. This is secured in a smart contract and verifiable on the blockchain. TCI tokens can be freely used in any DeFi product in the Waves ecosystem. If the community decides to vote for TCI to be added to protocols like SwopFi, ViresFinance, WX Pools, and PuzzleSwap, then that creates more opportunities to generate even higher revenues. The only limitation is the level of community adoption.

Main concerns

👉 What happens to the TCI price when it hits the open market?

👉 How will we make sure that the price from the open market will hold up against the price from the smart contract?

👉 What guarantee do I have that TCI will maintain the value derived from smart contracts while still being tradable in the market?

These and other variations of these questions are by far the most common concerns of our early investors.

The answer is in the supply of the Base Asset (BA) backed by TCI smart contracts. It is important to remember that each TCI token in circulation is issued based on the value of the BA brought into the vault. Based on this value, the price of each TCI derivative is automatically calculated. This is called the “TCI Smart Contract Price.”

So how can TCI tokens maintain their price from smart contracts in the free market?

The free market shapes itself organically. No one can guarantee you anything. Our idea to help balance the price is already in our Roadmap.

Now, let’s explain it in simple terms:

TCI derivative growth process


Early in the life of any TCI token, there must be a period of building Circulating Supply. The time to build this supply depends on demand. As you already know, the supply of TCI tokens will never exceed the demand. TCIs cannot be issued in any other way than by minting via dApp. Supply = Demand. During this period, we are also introducing our market maker bots to help first-time traders conduct their transactions on WavesExchange.


While supply satisfies demand and determines the size of TCI, the next stage is infancy. TCI is now forming its own character. What recognition will it gain in the Waves ecosystem? The best-case scenario during this period is to verify the token in WX Governance and create the first pool of liquidity.

Wild toddler

Now that the early free market is forming, TCI is becoming a toddler. This is the growth period. At this stage, the market price can fluctuate wildly as the market is just forming and hopefully becoming more liquid. Volume and liquidity are key factors during this period.

The life of a teenager

We have already formed TCI as a liquid asset and the market is continually shaping its price. TCI is in its teens and it’s a beautiful time too! Perhaps at this point, we have LPs on SwopFi, WX Pools, and/or PuzzleSwap. It’s time to become a man. It’s time to ask the cute girl next door to be our date. ViresFinance, you are so sweet.

DAO proporsal: add TCI to ViresFinance.

Early adulthood

TCI is settling down, finding his place in this town. Yes, this is the time when we party. We celebrate our youth. “See that mountain? It’s mine! I will move it! I will shape my destiny! I will live forever!”

Loving parents are present

“Hey TCI, don’t be so naive, you need an important lesson right now. We are here. When you are down — we will help you. We’ll get you back on your feet”. When you’re too high, with your head in the clouds — we’ll bring you back down to earth.”

Loving mom and dad: the Smart Contract of TCI and collateral (BA Supply) in the Vault.

How can “TCI Parents” help?

Finally, we come to a conclusion. A swap platform from TCI Smart Contracts is under development. This platform will help shape and regulate the market price of all TCI tokens by regulating the supply of TCI tokens in circulation.

Something for traders and arbitrageurs, two practical examples:

  1. The market price of sNSBT_TCI is lower than the smart contract price. The trader buys cheap TCI in the market. He then swaps his TCI token for a higher price from the smart contract on the Heraclitus Platform. The investor has made a profitable trade.
  2. The market price of sNSBT_TCI is higher than the smart contract price. The trader sells an expensive sNSBT_TCI for sNSBT on the open market. He then exchanges for sNSBT_TCI at a lower price from the smart contract on the Heraclitus Platform. The investor has made a profitable trade.

The last thing to know at this point is that swaps with collateral from smart contract vaults will only be possible for investors holding the protocol token. We plan to offer this token in our upcoming IDO. The protocol token will have several key features that will be explained soon. One of them is STAKE, in which the token will generate income from fees in the Heraclitus Platform.

The TCI lifecycle does not end where we left it. There is more!

We’ll save it for later 😉

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We’re glad to have you with us!