Use Your BTC to Get a Fixed-Rate Loan via Teller

If you're holding Bitcoin and want access to liquidity without selling your BTC, Teller’s fixed-rate, no-margin-call protocol—now supporting WBTC—is a compelling option. Here’s what you need to know and how to get started:

What is WBTC and Why Convert?

WBTC (Wrapped Bitcoin) is a token pegged 1:1 with BTC that lives on Ethereum. Wrapping your BTC unlocks powerful DeFi options—like lending, borrowing, and yield farming—while keeping exposure to Bitcoin’s value.

Why Choose Teller?

Teller is a decentralized platform offering fixed-rate, time-based loans with no margin calls—a major advantage over variable-rate protocols where you can be liquidated if collateral drops.

From Teller's recent Reddit AMA:

“Teller loans are fixed term and fixed rate…100% protection from margin calls = no price‑based liquidations.”

“With Teller, a borrower can ride out price swings before repaying or pay only the interest due at that time and extend the duration.”

Step-by-Step: From BTC to Borrowing

1. Wrap your BTC
   Use a trusted wrapping service like CoinList. Withdraw WBTC from a centralized exchange or swap directly any asset into WBTC on any EVM (Check for the best rates.)
2. Connect to Teller
   Visit app.teller.org, connect your wallet, and ensure WBTC appears as collateral.
3. Browse WBTC Loan Pools
   Choose terms around collateral ratio (LTV), loan duration (e.g., 7–30 days), and interest rate/APY. Pools are isolated per collateral–lending pair.
4. Borrow Against WBTC
   Borrowers can use WBTC as collateral to borrow USDC or any other stables or tokens.
5. Repay or Rollover to Extend the Loan
   •When the borrower repays on time, they get the WBTC back in
     that transaction.
   •Loans can be extended into longer durations via Loan Rollover.

Pros & Caution

How It Compares

Unlike Aave or Compound (variable rates, margin calls), Teller delivers stability and predictability. From Teller's AMA:

“Borrowers are often willing to pay higher than average interest rates… which in turn creates a strong incentive for lenders.”

Starter Checklist

1. Use any EVM wallet.
2. Wrap BTC to WBTC via your chosen wrapper/bridge.
3. Fund wallet with WBTC (and a bit of ETH for gas).
4. Head to Teller App, browse WBTC pools and select one of the pricipal you want
  to receive.
5. Deposit WBTC as collateral and borrow the selected principal in previous step.
6. Monitor the loan, repay on time or extend the loan via rollover.

Final Thoughts

For BTC holders seeking DeFi exposure while preserving their Bitcoin position, Teller provides a fixed-rate, liquidation-free borrowing option. The recent addition of WBTC support means you can choose your terms, lock in returns, and avoid sudden liquidations.

If you're comfortable with the risks and smart-contract basics, this approach lets your Bitcoin work for you, generating yield and enabling liquidity at the same time.

Want to dive deeper?
Explore:
🔗 Teller WBTC Borrow rates
🔗 WBTC wrapping guides

Disclaimer: Not financial advice. Always research, understand smart contract and default risks before lending or borrowing in DeFi.