TELx Market Participants & Incentives
TELx is powered by a decentralized network of participants who supply liquidity, subscribe positions, secure infrastructure, and govern the protocol through TELxIP (TELx Improvement Protocol) proposals. These participants form the broader Telcoin Ecosystem, each contributing to the depth, stability, and evolution of TELx and its markets. The ecosystem is designed so that productive activity is rewarded transparently and verifiably.
Participants
Liquidity Providers (LPs) – LPs are individuals or organizations that supply assets to TELx pools using Uniswap v4 architecture. They provide the actual liquidity that enables swaps across chains. LPs earn swap fees generated by trading activity and can choose to subscribe their positions to earn additional TEL rewards. LPs are the backbone of TELx, without them, markets cannot function.
Liquidity Miners (LMs) – Liquidity Miners are LPs who take the additional step of subscribing their positions on TELx. Only subscribed positions earn Merkl-managed TEL rewards. LMs perform essential “work” for the protocol by keeping their liquidity active and in-range, and they are compensated with transparent, proof-based incentives.
LP = provides liquidity. LM = provides liquidity and subscribes to earn TEL rewards.
TELx Council – The TELx Council is a local governance organization that oversees pool deployments, reward configurations, and the implementation of TELxIPs. They act as stewards of the protocol, ensuring that TELx evolves responsibly, transparently, and in alignment with community priorities.
Telcoin Association – The Telcoin Association is a non-profit organization whose mission is to represent the interests of GSMA Mobile Networks and other stakeholders in maintaining and developing the Telcoin Platform.
The Association manages treasury operations, protocol development, and compliance oversight for the broader Telcoin ecosystem. They support TELx’s long-term sustainability and ensure that infrastructure and governance remain aligned with regulatory and operational standards.
Uniswap – TELx pools are built on Uniswap v4, making Uniswap a critical participant in the ecosystem. Its AMM architecture provides the standardized, efficient, and composable liquidity framework that TELx uses across Polygon, Base, and Ethereum. Uniswap’s infrastructure ensures consistent pool behavior, deep liquidity, and reliable execution.
Merkl - The decentralized reward engine that calculates and distributes TELx incentives, built by Angle Labs. It reads subscribed positions on-chain, computes rewards off-chain using verifiable proofs, and publishes Merkle roots on-chain for transparent claiming. Merkl ensures that TEL rewards are fair, accurate, and fully auditable.
Incentives
Swap Fees
LPs earn swap fees generated by trading activity within each pool. Fees accumulate continuously and reflect real market usage. Deeper liquidity and tighter ranges typically result in more fee capture.
Merkl-Managed Rewards
Subscribed positions earn TEL rewards distributed through Merkl’s proof-based system. Rewards accrue only while positions are in-range and subscribed, ensuring incentives go to liquidity that actively supports market depth and stability.
Platform-Level Utility for TEL
TEL serves as the protocol and governance token for TELx. As the ecosystem grows, TEL holders gain increasing utility through governance (TELxIP voting), reward participation, and future protocol-level functions that strengthen the Telcoin ecosystem.