How we stay delta-neutral and process instant trades

Telis holds a USDC float on WCM.

Every time Telis lends liquidity to process a cross-chain swap, and open a matching perp, same USDC value, for destination token. That perp locks in the price, protecting LPs from any market move while the trade settles.

Imagine this to better understand.

Scenario

Vault inventory: 500 SOL on Solana

User obligations (open swaps): 10 SOL

Initial SOL price: $200 → IOU worth $2000

SOL rallies to: $210 → IOU now $2100

Step-by-Step

1. USDC bridge from surplus vault

   An Ethereum vault currently has excess USDC liquidity.

   Bridge amount: $2 000 USDC → Solana vault.

2. PnL harvest

   Close the WCM long, realising +$100.

3. SOL buy-back on Solana

   $2 000 bridged USDC + $100 hedge PnL = $2 100.

   Vault market-buys 10 SOL at the new $210 price.

4. Vault balanced

   Inventory: 500 SOL

   IOU to depositors: 0 SOL

   Hedge fully closed; vault is delta-neutral again.

Why this matters

• Dollar-neutral at all times. As soon as a user swaps, we lock the USD value with a matching WCM perp.
• Capital-efficient rebalance. Only the net deficit across chains travels cross-chain; hedge PnL covers the price drift.
• Bundle Transactions and settle only differences. This allows us to Bundle multiple transactions before the need to rebalance, significantly reducing time and cost whilst ensuring depositor’s funds remain intact

At all times, the system owns the exact token count it owes depositors; price moves only shift value between the on-chain contract and the WCM float.

LP Yield Sources