Protocol Economics#
TetraFi targets institutional stablecoin settlement - $1M–$10M orders at under 3 bps all-in cost with settlement in under 10 minutes.
Fee Structure#
| Component | Rate | Recipient |
|---|---|---|
| TetraFi protocol fee | 0.15–0.20 bps | TetraFi (platform) |
| Solver execution fee | ~0.80–2.85 bps | Winning solver |
| All-in cost | under 3 bps | - |
TetraFi charges a published protocol fee and solvers receive fee share under the applicable fee schedule. The model is designed around the fact that solvers bear capital and execution risk.
Illustrative structure only. Published fee schedules define the live corridor terms.
- Solver incentives
- Protocol service fee
- Network and settlement costs
$5M @ 2.5 bps = ~$0 all-in (0.025% of notional). TetraFi ~$0 (0.15 bps) · Solver ~$0 (2.35 bps). Scales linearly - $10M → ~$2,500.
Solver Economics#
Solvers profit from the spread between their sourcing cost and the quote they submit. The competitive auction ensures fair pricing.
| Factor | Impact on Solver Profit |
|---|---|
| Capital efficiency | ResourceLock lets solvers fill before user deposits - lower capital requirements |
| Inventory vs. JIT | Inventory solvers earn tighter spreads but carry balance sheet risk. JIT solvers source on-demand |
| Corridor volume | High-volume corridors attract more solvers, compressing spreads |
| Fill speed | Faster fills earn priority in speed-optimized auctions |
| Reliability | Consistent fill rates build reputation, increasing flow allocation |
Comparison with Traditional OTC#
Settlement Approach Comparison
| Feature | TetraFi | Traditional OTC Desk | DEX Aggregator |
|---|---|---|---|
Cost3 features | |||
Spread (bps) | under 3 | 5–15 | 1–5 + slippage |
Transparent pricing | |||
No hidden fees | |||
Speed2 features | |||
Settlement time | under 10 min | T+1 to T+3 | Seconds (same-chain) |
Cross-chain | Manual | ||
Compliance4 features | |||
On-chain compliance | |||
Audit trail (WORM) | Varies | ||
Travel Rule | Manual | ||
MiCA-ready | Varies | ||
Architecture3 features | |||
Non-custodial | |||
Atomic DvP | |||
Competitive auction | |||
Traditional Fees
- 5–15 bps spread
- Hidden desk markup
- Opaque pricing
- Manual negotiation
TetraFi Fees
- Under 3 bps all-in
- Transparent auction
- Competitive solver pricing
- Automated execution
Traditional Fees
- 5–15 bps spread
- Hidden desk markup
- Opaque pricing
- Manual negotiation
Target Market#
| Parameter | Value |
|---|---|
| Order size | $1M–$10M (institutional scale) |
| Asset class | Stablecoins (USDC, USDT, EURC) |
| Settlement | Cross-chain DvP (ERC-7683) |
| Participants | Asset managers, corporate treasuries, family offices, market makers |
Availability varies by corridor. USDC: widest coverage. USDT / EURC: per-corridor solver support. See Discovery for the live matrix.