Miners

Miners

Liquidity Miners: Platform Activities and Benefits

Liquidity Miners provide liquidity to DeFi markets, stake their liquidity in TELx, earn fees from trades, and harvest TEL issuance from TELx based on their pro-rata share of staked liquidity.

Liquidity Miners: Platform Activities

Role: DeFi liquidity provision, producing liquid, decentralized markets for users to transact their assets.

  • Activities: Liquidity Miners provide liquidity to TELx liquidity pools and stake their liquidity provider tokens (LPTs) in TELx incentives contracts.
    • Provide Liquidity to TELx: Provide TEL and other assets to TELx assigned liquidity pools, producing liquid exchange markets for users.
    • Stake Liquidity on TELx: Deposit LPTs, which empower liquidity miners with secure, self-custodial ownership over their percentage of a TELx market and the fees it generates, in staking contracts on TELx, which determines their TEL issuance earning power and their political power in governance.

    • Liquidity Miners: Platform Benefits

    Fees: Income from exchange fees

  • Exchange fees: Liquidity Miners earn exchange fees each time users trade assets using their liquidity pool.
    • Frequency: Earn fees in real time from every trade through their pool.
    • Fee Percentage: Programmed into the pool upon creation, generally ranges between 0.01%-1.0% depending on pool asset volatility and the use case.
    • Fee Currency: The "trade with" currency is used to pay fees. If a user sells USDC for TEL, liquidity providers earn fees in USDC.
    • Basis: Fees accrued based on pro-rata share of liquidity in a pool at the time of each trade.

    • TEL Issuance: Income from TEL issuance on TELx.

  • TELx Issuance: Liquidity Miners harvest TEL from TELx based on their pro-rata share of liquidity staked on TELx over time.
    • Allocation: Liquidity Miners harvest from a flow of 200M TEL in year one at a rate of 16.66M TEL per month.
    • Basis: Pro-rata share of liquidity staked in TELx contracts on a per block basis.
    • Current TELx Markets Arrangement: In order to review the existing liquidity mining policies on TELx, head to TELx.network or:

    • Liquidity Miners: Technology used

    The private technologies liquidity miners use to interact with the system.

  • TEL Consumption Use: Liquidity Miners use TEL to exchange for other assets using TELx liquidity pools, and pay TEL gas fees on Telcoin Network to have their transactions included in blocks and secured to the blockchain.
  • TEL Production and Harvesting Use: Liquidity Miners provide TEL and other assets to TELx liquidity pools and stake their liquidity provider tokens (LPTs) in TELx incentives contracts.
  • TEL Earning Power: Their proportion of the total liquidity provided to a pool and staked in TELx contracts determines a liquidity miner’s earning power.
    • TEL Exchange fees: Liquidity Miners earn a percentage of all exchange fees through their pools based on their pro-rata share of liquidity in those pools.
    • TEL Issuance: Liquidity Miners harvest TEL issuance from TELx based on their pro-rata share of staked liquidity on TELx.
  • TEL Revenue
    • TEL Exchange Fees: Liquidity Miners earn TEL fees each time users trade TEL for another asset using their liquidity pool.
    • TEL Issuance: Liquidity Miners harvest TEL issuance from TELx staking contracts.
  • TEL Governance Use
    • Political Power: Liquidity Miners’ power within their Miner Group in Telcoin Platform governance is based on their pro-rata share of liquidity staked in TELx. This influences their proposal and voting power in Council Member selection processes and constitutional-choice decisions that affect that governance system rules.
  • EVM-Compatible Wallet: Liquidity Miners may participate in liquidity provision, staking, and governance from any EVM-compatible wallet that enables those functionalities.
  • TELx assets: Miners provide paired liquidity with TEL and other assets in order to produce the TELx DeFi marketplace.
  • Liquidity Provider Tokens (LPTs): LPTs are the assets liquidity miners receive after providing liquidity to a given pool, and serve to empower them with secure, self-custodial ownership over their percentage of the liquidity pool and the fees it earns. Liquidity miners stake their LPTs in TELx incentives contracts to harvest TEL issuance from TELx.
  • Gas Tokens: Liquidity Miners need TEL and other gas tokens in order to transact on blockchain networks where TELx is located.

    • Liquidity Miners: Infrastructure Involved

    Liquidity Miners interact with and depend on the following Telcoin Platform components to produce and consume platform services and earn benefits.

    ComponentDescription
    Network Infrastructure

    The technological systems involved in the creation, storage, maintenance, generation of TEL within TELx for liquidity miners to harvest and DeFi protocols that facilitate exchange on TELx, managed by the TELx Council using the TELxIP process.    		Production Facilities: A network of liquidity pools on DeFi protocols, used for exchange.

    Storage Facilities: TELx Council Safe, TELx Distribution Safe.

    Distribution Facilities: TELx Staking Manager, TELx Telcoin-Distributor.

    Extraction Facilities: Staking contracts, TELx.network front-end site.
    Platform Infrastructure

    The underlying blockchain infrastructure systems that TELx system depends on to function.    		Telcoin Network: Serves as programmability, execution, settlement, data storage layer for TELx. The system enables the construction of liquidity pools in smart contracts that self-execute exchange and markets production functionality in programmable code, enables users to transfer, exchange their assets through a peer to peer network, and to verify their ownership and transaction history at any time by accessing the open, immutable, distributed ledger the network generates.

    Other Blockchains: The other blockchain networks, such as Polygon and Ethereum, which host TELx DeFi markets.