Platform

Platform

TELx: Interactions Between Subsystems

Application layer miners and users depend on TELx to produce a liquid, diverse network of markets to facilitate exchange demand, and liquidity miners benefit when users exchange their assets and pay fees. TELx liquidity facilitates increased transfer activity on Telcoin Network by increasing the aggregate supply of goods and services available to be consumed on the system, driving fee revenue, decentralization, and TEL sustainability. TELx depends on Telcoin Network to create on-chain programs that encompass DeFi protocols and its infrastructure as well as for the security and overall operation of the system.

Summary

Nested in the EVM as a network of DeFi markets, TELx enables users to exchange their assets without reliance on third parties, at any time, using automated, self-custodial liquidity pools.

Users and miners at the application layer and across the platform rely on TELx for exchange while TELx liquidity miners benefit from fees from trades.

The TELx system depends on Telcoin Network and other blockchains where it is located, for its operation including for execution, settlement, programmability, security, data storage and record-keeping functionality.

Adoption by users on TELx drives increased demand for Telcoin Network blockspace, resulting in a positive feed-back loop between TELx volume, liquidity and Telcoin Network fee revenue, participation, decentralization, and the sustainability of TEL.

 

Interactions on TELx: Impacts on TAN and Telcoin Network

Variable, DefinitionDescription
TELx → TAN

What impacts do interactions on TELx have on TAN?		TELx → TAN
• Liquidity: Application layer miners and users depend on TELx to produce a liquid, diverse network of markets to facilitate exchange demand, and liquidity miners benefit when users exchange their assets and pay fees.

• Positive feedback loop: Increased liquidity across diverse markets over time increases the total order size available at efficient prices for users, driving increased exchange volume at the application layer of the platform. Increased exchange volume drives revenue growth from trading fees, in turn incentivizing increased liquidity.
TELx → Telcoin Network

What impacts do interactions on TAN have on Telcoin Network?		TELx → Telcoin Network
• Volume: TELx liquidity facilitates increased transfer activity by increasing the aggregate supply of goods and services available to be consumed using Telcoin Network blockspace, driving fee revenue.

• Positive feedback loop: Increased fee revenue from liquidity pool exchange consumption drives increased fees from blockspace consumption to Validators. Increased fees on Telcoin network drives sustainability of TEL issuance in the TEL Treasury through Telcoin Network destruction and regeneration.
 

Interactions on TAN, Telcoin Network: Impacts on TELx

Variable, DefinitionDescription
TAN → TELx

What impacts do interactions on TELx have on TAN?		TAN → TELx
• Volume: TAN mobile applications route user trades through TELx markets, paying fees each time they transact with a TELx liquidity pool. Liquidity miners earn fees on each trade. Increased exchange volume on TAN drives increased fees and yield for liquidity miners on TELx.

• Positive feedback loop: Increased yield incentivizes increased liquidity, resulting in a positive relationship between application layer exchange demand and TELx liquidity.
Telcoin Network → TELx

What impacts do interactions on Telcoin Network have on TELx?		Telcoin Network → TELx
TELx is a set of smart contracts nested within the EVM that depends on Telcoin Network for:

• Security: Telcoin Network serves as an execution, settlement, and data availability layer for the whole platform. The decentralization and security of all layers, which depend on the blockchain to process transfers and secure the ledger, is a function of the decentralization and security of Telcoin network.

• Programmability: TELx liquidity pools are nested within the Telcoin Network EVM as smart contracts that facilitate decentralized markets production and exchange.

• Sustained Yield: As the TEL Treasury regenerates based on Telcoin Network blockspace demand, all miners depend on Telcoin Network blockspace availability, production and demand in order to sustain issuance over time.