TeleportDAO enables trustless and Bitcoin-grade secure connections from Bitcoin to EVM chains and Bitcoin Layer 2 solutions through a light-client bridge. The protocol facilitates Bitcoin bridging and supports the creation of cross-chain applications for Bitcoin. 

TeleportDAO's light-client bridge facilitates the transfer of messages from Bitcoin to EVM chains and introduces two key decentralized applications (dApps).

• TeleSwap: a decentralized trading platform that enables users to seamlessly bridge and exchange BTC and BRC-20s across Ethereum, Polygon, and BNB Chain with unmatched security. 
• TeleOrdinal: the first cross-chain marketplace for Bitcoin NFTs (Ordinals) that enables decentralized bidding on Ordinals from EVM chains using stablecoins.

• Build Secure Cross-chain Applications for Bitcoin: TeleportDAO is the unique trustless light-client bridge that actively connects Bitcoin, its Layer 2 protocols, and EVM chains such as Ethereum, BNB Chain, and Polygon. It enables the building of secure and trustless cross-chain applications for Bitcoin, such as Bitcoin lending, Bitcoin-backed stablecoins, Ordinal lending, and much more.
• Trade BTC and BRC-20s with ERC-20s: TeleSwap is the ultimate liquidity protocol for Bitcoin assets, facilitating entirely trustless exchanges of native Bitcoin and BRC-20s with any ERC-20 token, setting a new benchmark for Bitcoin's liquidity and accessibility.
• Purchase Ordinals from All EVMs: TeleOrdinal unveils the inaugural trustless marketplace for Ordinals and BRC-20 tokens, providing a secure and user friendly platform for trading using stablecoins.

The TeleportDAO System Token, TST, serves crucial functions within the network, particularly influencing the operations of locker and teleporter nodes, as well as offering benefits to users.

Locker nodes, which are essential for maintaining network integrity, currently necessitate locking native tokens to function. However, plans are underway to transition this requirement towards TST tokens. As the network's activity escalates, particularly with an increase in wrapping and unwrapping transactions, locker nodes will need to lock more TST tokens as collateral. This shift is poised to elevate the utilization for TST, making it a central element in the network's operations.

Similarly, teleporter nodes, which play a pivotal role in processing cross-chain proofs for TeleSwap and TeleOrdinal, will be mandated to lock TST tokens. This requirement secures their operation while also amplifying the utilization of TST as it becomes indispensable for these critical network functionalities.

For users, engaging with TST tokens offers tangible benefits, specifically in the form of discounts. By locking TST tokens, users can enjoy reduced fees for their transactions, particularly in Bitcoin and Ordinal trading. This incentive not only enhances user experience but also fosters a deeper integration of TST within the network's ecosystem.

Key highlights:

• Locker Nodes require to lock TST: Future requirements will necessitate locker nodes to lock TST tokens, thereby increasing the token's utilization as network activities grow.
• Teleporter Nodes’ TST Requirement: Teleporter nodes will need to lock TST to operate, securing the network and further enhancing the utilization of TST.
• Discounts for TST Users:  Locking TST tokens will provide users with discounts on transaction fees, enhancing the token’s utility and user engagement within the network.

Unlike most bridges that rely on a validator-based approach, TeleportDAO employs light-client technology. The fundamental concept behind light client technology is to verify the consensus of the source chain on the target chain using smart contracts. So instead of depending on third parties for cross-chain verification, we utilize predefined smart contract rules for this purpose. Light-client technology provides three distinct advantages over validator-based architectures:

• Security: Existing bridges rely on a set of validators to verify cross-chain data. Flaws in the security of these validators, such as a potential leak of their private keys, could result in million-dollar hacks. However, in light-client solutions, verification of cross-chain data is performed by smart contracts, enhancing security.
• Capital efficiency: Validator-based solutions require locking a significant amount of capital to increase security and enable the bridge to handle a higher value of tokens. This stems from the fact that their security is dependent on the locked value. In contrast, light client bridges derive security from the underlying chain, eliminating the need for excessive capital.
• Decentralization: In validator-based bridges, data is transferred by a set of validators, and they can potentially censor the movement of a cross-chain message. On the other hand, in light client bridges, anyone can transfer data between chains, and the provided data is validated by smart contracts, ensuring a more decentralized approach. 

Figure 1 - An overview of how Relay and Relayer work together