Since launching Telcoin V3, the TEL token and TELx decentralized liquidity engine have seen a huge surge in adoption. With the intuitive mobile Telcoin Application, the project is laying the foundations to ameliorate the slow and expensive legacy remittance industry. To achieve this, Telcoin operates a multi-layer application stack with full user-ownership. Moreover, the native TEL token is vital to the operations and security of the platform. Plus, TEL token holders receive numerous opportunities to support the network and make a passive income.
In this article, we are going to dive deep into the Telcoin crypto ecosystem, discussing the variety of services available. Also, we’ll explore the many functions of the multi-utility TEL token. Plus, we’ll look at how to participate in the Telcoin crypto network.
Telcoin is an application running on the Ethereum blockchain. For a deep dive on Ethereum, be sure to check out our Ethereum 101 course at Moralis Academy! Or, for a complete breakdown of blockchain technology, see our Blockchain & Bitcoin 101 course. No matter your age or current level of expertise, Moralis Academy has the right course for you! Join a welcoming community of over 30,000 students at Moralis Academy today!
What is Telcoin?
The Telcoin platform is a blockchain application enabling complete decentralization and full-stack user-ownership. As the first remittance network of its kind, Telcoin consists of an ecosystem of global users collaboratively operating the decentralized finance (DeFi) platform. This is true from the application layer to the settlements layer. Users within the Telcoin crypto ecosystem consist of Mobile Money Service Providers (MMSPs), Global System for Mobile Communications (GSMA) member Mobile Network Operators (MNOs), and active Telcoin platform users. Moreover, holders of the native TEL token receive governance rights of the platform. As such, users of the platform who govern the services they rely on can help Telcoin achieve its financial and community goals. Plus, TEL token holders can earn a passive income with their crypto while supporting the Telcoin network.
Telcoin exists to reimagine the shady and unreliable traditional remittance services. It does this by offering everyone with access to smartphones the opportunity to download the Telcoin Application and partake in a fully decentralized payments network. Also, Telcoin presents users with the opportunity to support and govern the application and earn rewards in return. The recent Telcoin V3 update introduces new adjustments to the decentralized liquidity network, TELx, and the Send Money Smarter (SMS) Network. We’ll discuss each of these aspects further in the article.
Telcoin makes it explicitly clear that the project itself does not provide a custodial service. Users are in full control of their assets at all times.
Operating on the Ethereum blockchain, the native TEL token uses the ERC-20 token standard. This makes the TEL token compliant with the majority of decentralized finance (DeFi) applications, wallets, and exchanges. The multi-utility TEL token is critical to the smooth-running and security of the Telcoin crypto ecosystem. As the underlying asset of the platform, the TEL token is the core medium of exchange and reserve asset. Moreover, the TEL token ensures decentralization and user-ownership throughout each layer of the Telcoin crypto project stack. This includes the application layer, marketplace layer, and settlements layer.
Each layer presents multiple utilities for the TEL token, with both “productive and consumptive” tokenomic roles. In short, this means that every Telcoin product has TEL token liquidity reserves. Plus, the asset is needed to interact with the TELxchange markets. As such, profits from the platform’s economic activity will flow over to TEL token holders as rewards.
As the TELx reserve asset, the TEL token presents quantifiable utility as the most cost-effective medium of exchange on the platform. Moreover, users of the SMS Network can use the TEL token as an alternative type of currency to stablecoins. Recipients of transactions sent with the TEL token will receive settlements in their local chosen stablecoin. Furthermore, the TEL token acts as a bridge currency between the SMS Network and TELxchange, as it is the only digital asset with liquidity for both. By default, all transactions on the Telcoin platform will route through TEL token pools.
That said, the Telcoin team publicly states the TEL token does not equate to or represent any shareholding, right, participation, profits, dividends, or promise of fees of “Telcoin Pte Ltd, its subsidiaries, affiliates, or any other company, enterprise, or undertaking”.
TEL Liquidity Mining
Telcoin’s ultimate goal is for every end-user on Telcoin to provide TEL token liquidity. By reinvesting in the platform through liquidity provision or other TEL token services, users can essentially pay themselves to use the platform. Also, Telcoin’s tokenomic infrastructure means the fees that are usually swallowed up by third-party intermediaries, investors, brokers, or banks, are redistributed to the TEL token holders supporting the platform.
Users who wish to support the platform as liquidity providers can do so across several popular decentralized exchanges (DEXs). Initially available on Uniswap then Balancer as a pilot liquidity mining incentives project, there is now a selection of liquidity pools available on the Polygon Network (MATIC). Coinciding with the release of Telcoin v3, users can provide TEL-ETH, TEL-QUICK, and TEL-MATIC liquidity pairs on the leading Polygon DEX, QuickSwap.
The DeFi 101 at Moralis Academy industry expert-led video tuition on how to interact with Uniswap and similar protocols. With step-by-step guides, we show students how to install the number one Web3 wallet, MetaMask. Plus, we show students how to use the crypto wallet across many other popular Ethereum DeFi protocols! Start your DeFi journey with Moralis Academy today!
When users provide liquidity on supporting automated market makers (AMMs), they receive liquidity provider tokens (LP Tokens). LP tokens represent the proportion of their liquidity provision within the overall pool. Users can take their LP tokens as Proof of Liquidity and stake them to become TELx miners. This means, alongside earning transaction fees from the participating AMM, TEL token holders can mine further TEL tokens. Also, miners can withdraw their accrued TEL tokens by removing their LP tokens at any time on a conditional completion of a vesting schedule.
As a fully permissionless open-source protocol, anyone can provide liquidity for the Telcoin project. TEL token liquidity providers (LP) can stake their LP tokens through the TELx portal, supporting the SMS Network or TELxchange smart contracts. First, simply state how many LP tokens you’d like to contribute. Then, click “stake” and confirm the transaction to become a TELx miner! To recap, users can earn TEL tokens through mining and platform fees from Telcoin users. Plus, users can accrue fees from providing liquidity with participating automated market makers (AMM), offering a triple-yield passive income.
The most recent update to the platform, Telcoin V3, is a full-stack infrastructure with complete user ownership. With decentralization and security as key values, Telcoin operates a multi-layer architecture. Each layer is complementary but has its own set of individual responsibilities. Below we cover the platform infrastructure: Telcoin Application, TELx, and Rivendell. Plus, we look at the new elements emerging with Telcoin V3, TELxchange, and SMS Network.
At the top of the Telcoin V3 stack is the user-end application layer, presenting a simple-to-navigate graphical user interface (GUI). Initially launching on Ethereum, the Telcoin Application is now running on the Ethereum layer 2 scaling solution, Polygon Network. This brings several advantages, including faster transaction speeds and lower costs. Moreover, as Polygon operates on top of Ethereum, the Telcoin Application retains the security of the largest smart contract-enabled blockchain.
The Telcoin Application is available to download on the Apple App Store and Google Play Store. The Telcoin app exists primarily to serve as an easy, faster, and cheaper alternative to traditional payments and remittance services. For people living in struggling economies or who don’t have access to banking services, the Telcoin app is fast becoming a popular solution.
Underneath the application layer is the marketplace layer, or the decentralized liquidity network called TELx. TELx markets are the decentralized liquidity pools that collaboratively power the cross-border transfer services. Plus, with the launch of Telcoin V3, it now also hosts liquidity for the digital asset exchange, TELxchange. The TELx liquidity engine enables complete decentralization of Telcoin services allowing the Telcoin application to provide self-custodial decentralized finance (DeFi) services to end-users.
The long-term goal is for all Telcoin Application transactions to exclusively route through TELx market pools in cooperation with supporting decentralized exchanges (DEXs) and automated market makers (AMMs). With the launch of Telcoin V3, the project launched nine new liquidity provision pool incentives across two DEXs on the Polygon Network. All TEL tokens paid as fees on the Telcoin Application are distributed across the TELx supporters staking their TEL tokens. As such, when TELx supporters interact with the Telcoin Application to go about their daily lives, they essentially pay themselves when participating in the payments network.
Telcoin manages to orchestrate an intricate bi-directional middle-layer infrastructure that achieves true user ownership, abstaining from financial intermediaries and institutions. Instead, Telcoin uses smart contracts, with the TELx liquidy engine at the heart, rewarding participants a fair share (proportionate to their Proof of Liquidity contribution) of platform fees.
TELxchange is the utility token exchange platform with the native TEL token as the base asset and core medium of exchange. Facilitating a non-custodial service, the TELxchange enables seamless trading of the TEL token with a “compliant list of utility tokens with strong consumer demand”. This includes the likes of AAVE, WBTC, WETH, and WMATIC as initial assets.
TEL token holders can become TELxchange liquidity providers (LPs) through the TELx portal smart contracts. As such, users who are LPs of TELxchange who interact with the digital asset exchange will earn TEL token rewards when processing transactions on the exchange. This is another way Telcoin allows you to “Pay Yourself”, whereas normally fees would reroute to a centralized entity.
The Send Money Smarter (SMS) Network is the remittance payments service available through the Telcoin Application. Users can make borderless payments at much cheaper rates than using traditional alternatives. Plus, payments arrive instantly - days quicker than competing global payment transfer services. Furthermore, SMS Network is also under complete user-ownership routing payments via the TELx liquidity engine. However, the TEL token liquidity tokens are paired with a variety of different stablecoins. As such, if users of the SMS Network are also providing liquidity with Telx, they will essentially be paying themselves when confirming and sending transactions on the network, similar to the TELxchange model.
The Send Money Smarter (SMS) Network hosts liquidity pools for TEL token-stablecoin pairs. This includes USDC, the Canadian Digital Dollar stablecoin (CADc), the STATIS EURO stablecoin (EURS), and the Singapore Dollar stablecoin (xSGD).
The bottom layer of the Telcoin stack is the settlement layer, interoperating with Rivendell. As an Ethereum sidechain using the Polygon SDK (software development kit), Rivendell primarily provides blockchain-based self-custodial mobile financial services through its native application. Further, Rivendell enables decentralized finance (DeFi) applications to operate solely with Mobile Network Operators (MNOs) as the exclusive validator set. This allows mobile networks to offer financial blockchain solutions to their subscribers with minimal overheads. Moreover, “GSMA Full Member MNOs have the exclusive right to run transaction nodes and earn network fees”.
As Rivendell is open-source and scalable, it can offer flexible solutions for applications from standalone to full-stack applications. The project aims to become the go-to “distributed ledger for the telecom industry”. Plus, with frictionless interoperability, Rivendell offers complete customization of applications to cater to the demands of the service.
Rivendell is responsible for the settlements of the Telcoin stack. As a Global System for Mobile Communications (GSMA) mobile network Associate Member, Telcoin powers the Rivendell sidechain. In turn, the Rivendell Node Operators receive TEL token issuance rewards as incentivization for the security and growth of the network.
Exploring Telcoin & TEL Token Summary
Telcoin is redesigning the global remittances infrastructure using decentralization and an application with true full-stack user ownership. For the first time ever, users of a payments network can have voting rights over the platform. Plus, users gain ownership and have a say in the operation of the network. Further, these opportunities are presented to users through an intuitive, user-friendly application, the Telcoin mobile app.
Also, Telcoin V3 offers users of the Telcoin crypto project an opportunity to earn a passive income through supporting the network by providing liquidity and staking their tokens. Moreover, liquidity providers (LPs) who use the Telcoin digital asset exchange, TELxchange, or payments service SMS Network will receive a percentage of the platform fees. As an open-source permissionless project, Telcoin aims to present a platform for true financial inclusion, rewarding network participants the fees that would traditionally be awarded to shareholders. Further, Telcoin offers anyone the chance to become a TELx miner.
See our Bitcoin Monetary Revolution course to discover more about how blockchain technology could help solve world poverty and the history of money! Here at Moralis Academy, we educate students about the origin of blockchain and how cutting-edge technologies can offer solutions to the flaws in the traditional banking industry. Fall down the blockchain rabbit hole with a wide range of courses at Moralis Academy today! Also, don’t forget to follow us on Twitter @MoralisAcademy! We’d love to know your thoughts about Telcoin and the TEL token!