TELxCHANGE Overview
TELxCHANGE is a user-owned, decentralized utility token exchange that leverages AMMs to enable users to capture trading fees for providing self-custodial liquidity to smart contract-based token reserves. The following transaction flows demonstrate how various TELxCHANGE orders route execution, settlement, and delivery through TELx. Telcoin does not transmit funds on behalf of TELxCHANGE customers, orders are routed through smart contracts at the sole discretion of the user and digital assets are completely self-custodial.
The function of TELx as a component of the Telcoin Platform is to produce a liquid network of decentralized financial markets for Telcoin users and miners to exchange and otherwise transact their assets (lending, borrowing, etc). It is also designed to enable users to participate in the supply side of products they use in their daily lives, both in terms of harvesting the flow of benefits generated by those products (fees) and to participate in managing the system. In this way, the vision for TELx is to produce both highly performant and user-owned financial products.
Notes:
1. Users of the Telcoin Application will intuitively swap supported digital assets as seamlessly as possible. The following is meant to show how the product works “under the hood” after the user confirms the TELxCHANGE transaction.
2. Each transaction includes a nominal transaction fee paid to Telcoin by users.
3. The Telcoin Platform strives to strike a balance between ensuring best execution for users, growing the list of assets tradable TELx assets, and maximizing the use of TELx pools. As such, a large majority of trades route directly through TELx pools, but this routing is not forced.
Figure 1: USA customer buys TEL with bank balance
Figure 1 Transaction Flows
Miners
A. Deposit liquidity reserves in AMMs, receive LPT, and begin earning swap fees.
B. Stake LPT in TELx staking contract
C. Claim TELx liquidity mining incentives after vesting period
Users
1. USD buys USDc using bank or payment service
Fee: On-ramp Fee
2. USDC swaps for TEL at best rate aggregated across TEL/USDC TELx pools.
Fee: Paid to liquidity pool
Figure 2: USA customer buys WETH from bank balance
Figure 2 Transaction Flows
Miners
A. Deposit liquidity reserves in AMMs, receive LPT, and begin earning swap fees.
B. Stake LPT in TELx staking contract
C. Claim TELx liquidity mining incentives after vesting period
Users
1. USD cashes into USDC using bank or card payment service
Fee: On-ramp Fee
2. USDC swaps for TEL at best aggregated rate from TEL/USDc pools.
Fee: Swap Fee paid to liquidity pool
3. TEL swaps for WETH at best aggregated rate across TEL/WETH TELx pools
Fee: Swap Fee paid to liquidity pool
4. Application user receives WETH
Fee: None
Figure 3: Canadian customer buys WETH from bank balance
Figure 3 Transaction Flows
Miners
A. Deposit liquidity reserves in AMMs, receive LPT, and begin earning swap fees.
B. Stake LPT in TELx staking contract
C. Claim TELx liquidity mining incentives after vesting period
Users
1. CAD cashes into CADc using bank or card payment service
Fee: On-ramp Fee
2. CADc buys USDC from USDc/CADc DFX pool
Fee: Swap Fee paid to liquidity pool
3. USDc swaps for TEL at best aggregated rate across TEL/USDC TELx pools
Fee: Swap Fee paid to liquidity pool
4. TEL swaps for WETH at best aggregated rate across TEL/USDC TELx pools
Fee: Swap Fee paid to liquidity pool
5. Application user receives WETH
Fee: None
