Introducing: Long Tail Lending Pools from Teller
What is Teller?
Teller is a decentralized, P2P lending protocol, built on Ethereum. The protocol launched in 2021 and has processed over $50m in P2P loan volume. Teller loans are overcollateralized, providing native utility to long-tail assets.
What is a Long Tail Asset?
In regards to DeFi lending, long-tail asssets represent any ERC20 token outside of $ETH, $WETH, and major stablecoins. These tokens serve onchain communities, with unique utility aligned to each ecosystem.
Long Tail Lending Pools from Teller
Teller now enables anyone to earn long-tail yield on $USDC, $WETH, or any other Ethereum asset.
Long-tail lending pools generate passive yield on any collateral asset. Lending pools are deployed with pre-set loan terms: collateralization ratio, apr range, max loan durations, etc.
Where Does the Yield Come From?
The yield is generated from interest paid by borrowers. Holders of $USDC, $WETH, or any ERC20 token can passively supply funds to the pool and earn.
Each long-tail pool is isolated to a specific lending token (for example $USDC) and specific collateral token (for example $SPX).
On the borrow side, long-tail lending pools offer short term, time-based loans. Borrowers agree to a predetermined loan repayment date.
If a loan enters default, the collateral tokens are transferred to a 24 hour dutch auction, where collateral is purchased to pay off the loan.
Explore the Pools
From your desktop or mobile device, navigate to Teller and select the Earn tab.
Here you will see a list of long-tail lending pools, filtered by lending token: $USDC, $WETH, etc. In addition, pools can be sorted by Liquidity, Debt, or Yield.
Each lending pool has a specific page, with additional metrics, charts, and ability to supply or withdraw. Browse pool metrics, historical details, and active loans.👇
Primary Lending Pool Terms
Below are some terms to familiarize yourself with before supplying liquidity:
- Collateralization Ratio (for example, $5 worth of collateral for every $1 worth of a loan)
- APR Range (min to max interest rate charged per loan)
- Loan Duration (max days an individual loan can be borrowed from the pool)
- Debt Threshold (max liquidity that can be borrowed from the pool)
- LTV Oracle Route (Uniswap V3 route to determine LTV on loan initiation)
... and more (check inside each pool page, under Additional pool metrics)
How Can I Supply Liquidity?
Supply. Yield. Withdraw.
Step 1: Connect your wallet to app.teller.org and navigate to Earn
Step 2: Select a specific pool. Under Supply, enter the amount of the collateral tokens that you want to supply to the pool
Step 3: Execute the onchain Supply transaction
After executing the onchain Supply transaction, lending tokens are transferred from your wallet to the pool.
Yield will accumulate on each loan repayment. That's it. 😎
Withdrawing funds is a similar process. Enter the amount that you would like to withdraw and then execute the onchain Withdraw transaction.
Please note: The amount that can be withdrawn at any time is based on the pool's debt threshold and outstanding debt. You can view these under the Additional pool metrics section on the pool's page.
How Can I Borrow?
Borrow. Put to work. Extend or Repay.
Step 1: Connect your wallet to app.teller.org and navigate to Earn
Step 2: Select a specific pool. Under Borrow, enter the amount of the collateral tokens that you want to use for the loan
Step 3: Execute the onchain Deposit & Borrow transaction
When the Deposit & Borrow transaction is executed, the collateral tokens are transferred into an onchain escrow contract, while the loan amount is transferred to the borrower's wallet.
Active loans can be Extended via a flash loan, as long as there is liquidity in the pool to support a new loan.
Loan repayment transfers the loan amount and the interest due to the pool. At the same time, the principle collateral is transferred back to the borrower's wallet.
Ready to start earning long-tail yield on your stables?
Official Teller links below:
- Teller App 🌲: app.teller.org
- Teller Docs 📓: docs.teller.org/teller-lite/lending-pools
- Teller Discord 👾: discord.gg/teller
- Teller X 🐦 : x.com/useteller
