Platform
TELx: Predictability of System Dynamics
TELx is highly predictable. Liquidity pools and other on-chain TELx systems operate in open-source code that can be verified at any time by anyone and self-execute on blockchains, which are designed to operate with 100% uptime and availability.
Overview
Transparency: AMM liquidity pools on public blockchains offer transparency, as all transactions and pool data are recorded on the blockchain. Users can monitor trading volumes, pool sizes, and price changes, enabling them to study patterns and trends to make informed predictions.Liquidity Pool Algorithms: AMMs utilize specific pricing algorithms, such as constant product market makers (x * y = k), which define how prices adjust based on the pool’s asset balances. This algorithm provides a level of predictability in understanding how prices will change in response to trades.Smart Contracts: The rules governing AMMs and liquidity pools are encoded in smart contracts, which provide a predictable and programmable framework for interactions between traders, liquidity providers, and the AMM protocol.Fees and Issuance: Users pay fees to exchange assets using liquidity pools that are pre-determined and encoded into each pool. Miners earn fees each trade through their pool and extract TEL issuance at predictable flow rates by staking their LPT’s in staking contracts, which harvest issuance in real time based on a miner’s pro-rata share of liquidity staked.