What is the utility of TEL on TELx?
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.
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 will 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.
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.
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.
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.