🟩Fee & speed

What are TeleSwap's fees?

To bridge assets from Bitcoin to EVMs or from EVMs to Bitcoin, users pay three fees:

• Network fee: This fee is charged by both the source and destination networks for executing transactions. The amount of this fee depends on the congestion of the source chain and destination chain but not on the bridge amount. It consists of the Bitcoin transaction fee and the EVM transaction fee. For bridging from Bitcoin to EVM, users send their requests on Bitcoin, where they need to pay the transaction fee. This request should also be submitted on the EVM chain to be executed, requiring covering the EVM transaction fee. The same applies to bridging from EVM to Bitcoin, where users send their requests on EVM, and the request is processed on Bitcoin.

• Locker fee: 0.15% of the bridge amount is allocated to the Locker node that processes the request. This fee compensates Lockers for their service, which primarily involves managing Bitcoin assets and processing bridge requests. Lockers can offer their service by locking collateral, and this fee compensates them for their locked assets. As more users demand bridging services, Lockers must provide additional collateral. The percentage fee serves as ample incentive for them.

• Protocol fee: 0.05% of the bridge amount is allocated to the TeleSwap treasury. The collected fee is earmarked for the future development of TeleSwap, with decisions regarding its distribution and use made by TST (Teleport System Token) holders.

For trading between Bitcoin assets and ERC-20s, there is an additional DEX fee.

• DEX fee: This fee is charged by AMM DEX for swapping Bitcoin assets to ERC-20s or vice versa. The percentage fee depends on the DEX integrated with TeleSwap. For example, TeleSwap uses QuickSwap on Polygon and PancakeSwap on BNB chain, both of which charge 0.25% of the swap amount as a fee to compensate liquidity providers.

How fast does TeleSwap process requests?

To bridge assets from Bitcoin to EVMs or from EVMs to Bitcoin, TeleSwap processes requests after their confirmation on the source chain. This is called confirmation delay.

• Confirmation delay: This is the time it takes for a transaction to be confirmed on the source chain. In the case of Bitcoin to EVMs, it takes 3 Bitcoin confirmations, which is around 30 minutes. For EVMs to Bitcoin, it depends on the EVM confirmation delay, which is usually around 2 minutes. TeleSwap waits for confirmation delay as a security measure; processing requests before their confirmation poses a risk of transaction exclusion from the source chains. This could lead to minting unbacked wrapped Bitcoin assets or unintentionally sending Bitcoin assets to users for free.