Teller DeFi Credit Score Lender to Include Yield Farming

Zoran Spirkovski

Sep. 17, 2020

Teller Finance, an algorithmic credit risk protocol for decentralized unsecured lending, is set to launch in October.

Yield Farming in DeFi Is Fun, but Don't Forget About Uncle Sam

Key Takeaways

Teller announced it will launch in October with yield farming features.
Liquidity providers will be able to earn TLR and COMP.
Teller Finance wants to set a new standard for decentralized loans by eliminating the need for collateral.

Teller Finance plans to launch a decentralized non-custodial undercollateralized lending platform with yield farming features. The platform will enable liquidity providers to earn TLR and COMP when they participate as lenders through interest rates.

Capital investments will be locked for three months and result in rewards vested over the same period of time. Institutional investors are given a $10 million capacity and can only earn 1% of the total TLR supply. Teller already sourced $8 million worth of liquidity in DAI and USDC from institutional investors and DeFi Alliance.

Regarding TLR, 29 million tokens (29%) have been allocated for public distribution over the first 12 months of operations. Initially, all decisions will be made by the Teller Labs founding team; however, once the platform reaches maturity and wider distribution of the governance token, Teller will shift to a community-based proposal system.

Robert Leshner, the founder and CEO of Compound said:

“The Teller Protocol is resolving an essential problem for DeFi. Namely, lowering the barrier to entry for new DeFi users by pricing out risk, and reducing the industry’s need for collateralized debt positions,” said Robert Leshner, founder and CEO of Compound.

At first glance, it seems difficult to assume that the overall crypto community will be able to accept the possibility of unsecured loans. However, Teller users have full KYC compliance and contact detail sharing agreements. In the event of a loan default, the user’s details are shared with debt collection agencies and they are subject to a collection mark on their credit report.

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