Telis functions like a traditional settlement book. We maintain pre-funded treasuries on each network and settle instantly from local liquidity, hedging exposure through perpetual positions to stay delta-neutral.
This architecture generates yield through on-chain arbitrage, float, funding rates, and spot-perp inefficiencies. These returns directly offset our operational costs, allowing us to remain highly competitive on fees. When an incoming trade naturally helps us close out a hedge position or rebalance our treasury—effectively reducing our overhead—we pay for that trade. Users benefit from reduced or zero fees, and we benefit from lower hedging costs. Everyone wins.
Here's a simplified example of how a trade moves through the system:
| Step | What Happens | Why It Matters |
|---|---|---|
| 1 · Intent Signed | User signs a swap request: fromChain: Solana (SOL) → toChain: Ethereum (ETH) |
Signature locks in-amount & max-slippage. |
| 2 · Source Vault Sells to USDC | Telis vault on Solana swaps the incoming SOL to USDC via on-chain aggregator. | This puts every trade in one clean, dollar-based inventory making it easier to hedge, easier to rebalance. |
| 3 · Perps Engine Longs Destination Token | WCM opens a long ETH-perp sized equal to the USDC value from step 2. | Offsets the inventory ETH that will leave the Ethereum vault in less than 20ms, keeps Telis dollar-neutral while still settling fast. |
| 4 · Cross-Chain Receipt Sent | A light oracle passes the signed receipt to the Etherum vault. | Guarantees only valid, funded swaps can unlock assets. |
| 5 · Destination Vault Releases ETH | ETH vault verifies the receipt and sends ETH directly to the user (or to a local swap contract for specific tokens). | User sees assets in < 1s, no waiting for block finality. |
| 6 · Background Rebalance & Hedge Close | When utilization hits a threshold, the ETH-perp is closed, Solana’s USDC is bridged to Ethereum, and used to rebuy ETH. | Vaults are rebalanced, hedge is cleared, and any PnL is funneled straight to LP rewards. |
LPs earn attractive yields on deposited assets. Users experience frictionless, get near-instant cross-chain settlement. And the protocol remains economically sustainable. Costs are offset by yield, not subsidies. The system scales efficiently without compromising security or profitability.