TEL Utility: How do market participants use TEL across the Telcoin Platform stack?
As a full-stack, decentralized financial platform with a unique set of market participants at each layer, active users utilize TEL to provide supply side services to the networks that power the platform and benefit end users, who in turn use TEL to access those services.
TEL on the Telcoin Application
Description: In V3, Telcoin Application users use TEL as a medium of exchange to access products and services.
Medium of Exchange : As the native reserve asset, with liquidity against every other asset available on the platform, TEL is the most cost-effective asset to transact with across Telcoin's products. Additionally, end users can send TEL to any Ethereum address or mobile phone number in the world, and will be able to spend their TEL using our crypto debit card.
Financial Inclusion: Every end user is eligible to earn a percentage of issuance when they participate in a variety of ways on the Telcoin Platform
TEL on TELx
Description: TEL is the underlying asset of the Telcoin Platform. Telcoin users provide self-custodial TEL liquidity reserves against other platform-native assets on supported TELx Markets, earning Telcoin issuance and transaction fees that flow through the Telcoin Application. TELx-native DeFi communities can seamlessly onboard into the Telcoin ecosystem by swapping their assets for TEL and vice versa.
Reserve Asset: In the first phase of TELx, users provide self-custodial liquidity reserves to AMMs, earning fees from swaps, and then stake their LP Token to earn issuance over time. In the future, Telcoin may introduce additional reserve asset functions, such as a form of collateral to decentralized debt markets, insurance markets, and more.
Medium of Exchange: TEL has quantifiable utility as a medium of exchange as a result of its usage as the TELx reserve asset. On AMMs, the cost to swap through a liquidity pool is mathematically quantifiable and, intuitively, the more reserves in a given pool, the less any one trade costs. Therefore, the success of TEL as a reserve asset on TELx has a causal, direct, and quantifiable relationship with its utility as a medium of exchange for users, and is designed to be the most liquid, cost effective asset to transact with on the platform.
SMS Currency: In the same way users of the SMS Network conduct send and swap transactions through liquidity pools using stablecoins, they can also conduct SMS transactions using TEL that settle in the local stablecoin of the recipient, or any other asset on the platform.
Bridge Currency: As the only digital asset with both TELxCHANGE and SMS Network liquidity, TEL serves as the bridge currency between applications on the platform. All transactions between stablecoins on the SMS network and the native cryptocurrencies of TELxCHANGE are, by default, routed through TEL pools.
User Ownership: TEL is a liquidity reserve in every Telcoin product and a required reserve in every TELxCHANGE market, ensuring that a portion of the value captured by platform economic activity flows to active TEL users. This empowers active TEL users to earn economic incentives at the protocol level for providing services that benefit other users, and to capture fees from products they use in their daily lives.
TEL on Rivendell
Description: Rivendell Validators secure the network and market participants use TEL to pay the costs of consumed computational resources for using the system (gas costs).
Network Validation: MNOs agree to perform honest computation and maintain 100 percent network uptime, in exchange for TEL issuance and transaction fees.
Medium of Exchange: The TEL Token will be used as the unit of exchange to quantify and pay the costs of the consumed computational resources (gas costs) on the Rivendell Network.