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How does it work?

Teleportation is a collateral-based mechanism that enables instant cross-chain settlements in a fully secure manner. In this mechanism, users are credited based on the value of their locked collateral. Users can move or exchange assets instantly across chains, up to the amount of their credit.


To illustrate Teleportation, let's use an example of a cross-chain transfer. Suppose Alice has some BTC that she wants to move to Polygon. Without Teleportation, Alice would have to wait an hour to receive her teleBTC. However, she needs her wrapped asset urgently. Fortunately, Alice has some idle USDT on Polygon. To get her teleBTC instantly, Alice can follow the steps below:
  1. 1.
    Deposits her USDT in the USDT collateral pool, which will provide her with the necessary credit to move BTC instantly.
  2. 2.
    Borrows teleBTC from the teleBTC instant pool, and her collateral will be transferred to the TeleSwap smart contract.
  3. 3.
    Sends a repayment request on Bitcoin, which automatically wraps her BTC into teleBTC and sends it to the teleBTC instant pool to repay the loan. The TeleSwap smart contract then sends back Alice's collateral.


Users can deposit several assets, including stablecoins, as collateral to get instant loans. Once they receive a loan, they have a limited time to repay it. If they fail to repay the loan within the predetermined time, the protocol will slash their collateral. The collateral serves as a guarantee that the loan will get paid back. The collateral that is slashed from the user's account is exchanged for borrowed teleBTC and sent to the instant pool.


The Teleportation mechanism has several key parameters, including:
  • Collateral ratio: It is the ratio between the value of the locked collateral and the maximum loan value that can be borrowed against it. For example, if the collateral ratio is 2, and a user locks $100 worth of collateral, they can borrow up to $50 worth of assets instantly. The collateral ratio varies based on the volatility of the underlying collateral.
  • Payback deadline: After getting the instant loan, the user has a limited time to repay it. This repayment period is set to be long enough so that the user's payback transaction can get confirmed on Bitcoin within this period with a high probability.
  • Slasher fee: If the user fails to repay the instant loan before the payback deadline, a slasher calls the smart contract to slash the user's collateral. The user's collateral will be exchanged for borrowed teleBTC to repay the instant loan. Also, part of the collateral will be sent to the slasher as a reward.