Discover Teller Protocol, a groundbreaking DeFi platform that enables users to lend, borrow, and build an on-chain credit history on a non-custodial lending book with customizable loan terms and extensive collateral options.
Table of Contents
- Introducing Teller: A New Era in DeFi Lending
- Why Choose Teller?
- How Teller Compares to Traditional DeFi Money Markets
- Earning Yield with Teller
- Borrowing Made Easy
- Understanding Loan Default on Teller
- On-chain Credit Score Providers
- Assessing Risks with Teller Protocol
Introducing Teller: A New Era in DeFi Lending
Teller is a non-custodial lending book that enables users to:
- Lend at above-market rates with a fixed duration
- Borrow against any ERC20 (token) or ERC721 / ERC1155 (NFT)
- Build a history of on-chain credit through loan repayments and defaults
Teller is live on Ethereum and Polygon, making it accessible to a wide range of users.
Why Choose Teller?
Teller addresses the limitations of traditional DeFi money markets by:
- Supporting any crypto asset as collateral
- Eliminating auto liquidation risk for borrowers & introducing time-based liquidations
- Providing on-chain credit insights for liquidity providers
This unique DeFi lending and borrowing approach makes Teller a game-changer in the space.
How Teller Compares to Traditional DeFi Money Markets
Teller offers advantages over traditional DeFi money markets, such as:
- Value: Use any crypto asset as collateral instead of a limited selection of assets
- Risk: Manage collateral price volatility risk for LPs instead of oracle manipulation risk
- Underwriting: Evaluate collateral price volatility and on-chain credit/identity instead of relying on liquidation certainty
- Default recourse: Seize collateral and negatively impact on-chain credit instead of price liquidation
Earning Yield with Teller
Liquidity providers can earn passive income by:
- Directly lending to individual loan requests
- Supplying liquidity to open "offers" with pre-set conditions
- Liquidity providers can earn passive income by automatically supplying liquidity to borrowers who meet the pre-defined criteria set by the lender. This streamlines the lending process and ensures a secure and efficient way to generate yield.
Borrowing Made Easy
Borrowers can leverage any crypto asset as collateral by:
- Requesting a custom loan
- Borrowing from open liquidity "offers" with pre-set conditions
Understanding Loan Default on Teller
A loan is considered in default when a borrower fails to pay a scheduled repayment after the due date and grace period. Default consequences include:
- Collateral seizure
- Negative impact on the borrower's on-chain credit score
On-chain Credit Score Providers
Teller loan data is integrated into several on-chain credit protocols, which also monitor users' lending and borrowing behaviour.
These protocols include:
Assessing Risks with Teller Protocol
Teller is not without risks:
- Liquidity risk for lenders: The primary risk for liquidity providers is loan repayment. Providers must account for the probability of loan repayment (and/or collateral price stability) based on the loan collateral (both type and amount) and the borrower's on-chain credit and identity.
- Borrowing risk: The primary risk for borrowers is default recourse. On default, collateral assets can be seized by a liquidator, regardless of asset type and amount. In addition, the wallet's on-chain credit score can be negatively impacted, which is public throughout the DeFi ecosystem.
📃 Teller V2 Docs – https://teller.gitbook.io/teller-lite/
🔒Github – https://github.com/teller-protocol
👾 Discord – https://discord.com/invite/teller
🐦 Twitter – https://twitter.com/useteller
🖥️ Teller App – https://alpha.lite.app.teller.org/