Conversion Method

Tellie utilizes the Uniswap protocol to convert MATIC to USDC at the point of sale. Tellie has no control over the conversion rate as it is variable and calculated based on the protocol’s approach of using an Automated Market Maker (AMM). They key aspect to note here is that conversation rates are variable and calculated based off of a function used in the Uniswap’s protocol. Baked into the calculation of every conversion is a small fee that is deducted from the resulting amount.

Uniswap’s definition of an AMM

At a very high level, an AMM replaces the buy and sell orders in an order book market with a liquidity pool of two assets, both valued relative to each other. As one asset is traded for the other, the relative prices of the two assets shift, and a new market rate for both is determined.

What is Uniswap?

Uniswap is the company that developed the Uniswap protocol. Currently, it is the leading decentralized exchange (DEX) by trading volume and is commonly used to allow anyone to swap ERC20 tokens.

For more information on the protocol, have a look at the Uniswap Docs. Live conversation rates between MATIC and USDC can be found here.