Teller Finance, a mission constructing an undercollateralized lending protocol for decentralized finance, has introduced the launch of its mainnet
Teller Finance, a mission constructing an undercollateralized lending protocol for decentralized finance, has introduced the launch of its mainnet alpha stage. This may allow sure customers to acquire credit score with out requiring to put up collateral, which is the case for many different DeFi lending protocols.
The Teller alpha might be accessible solely to holders of a particular nonfungible token, known as the Fortune Teller NFT. The tokens might be offered on March 25, with half of the proceeds of the sale going to the protocol’s liquidity swimming pools, and the remaining half might be used to fund improvement. Solely $10 million in complete worth locked might be allowed throughout the early stage.
The Fortune Teller NFTs can even symbolize artworks by “numerous well-known artists” commissioned by Teller. The complete listing might be revealed post-sale.
Teller Finance combines a no-collateral lending protocol and a Secured Loans choice. The undercollateralized platform is powered by conventional credit score rating assessments utilized in the USA. Teller customers should join their financial institution accounts to the platform, which can calculate mortgage phrases primarily based on its Credit score Danger Algorithm. Components like having vital funds on the checking account and a steady month-to-month revenue will affect the utmost quantity borrowable and the rate of interest.
The credit score threat evaluation is revealed on-chain by way of Teller’s validators, which use a Subgraph to attach a cloud-based infrastructure to the blockchain and the Teller sensible contracts. The loans are disbursed by way of crypto or stablecoins.
Teller’s Secured Loans work in the same technique to platforms like Compound, requiring customers to put up collateral exceeding their mortgage quantity. This type of lending is usually helpful for constructing leveraged lengthy or quick positions on cryptocurrencies.
Teller’s gradual roll-out comes as increasingly more protocols select to pursue a “guarded launch” technique, limiting the potential losses from protocol malfunctions. The alpha mode is predicted to final for a number of weeks because the protocol allows NFT staking and rewards.