The Teller lending protocol does not open a public alpha to NFT holders

Teller Finance, project building an insufficiently secured loan protocol for decentralized finance has announced launch of its alpha phase of the mainnet. This will allow certain users to obtain credit without being required to lodge collateral, as is the case with most other DeFi lending protocols.

Alfa Teller will be accessible only to holders of a special non-functional token called Fortune Teller NFT. The tokens will be sold on Thursday, with half of the proceeds going to the protocol’s liquidity funds and the remaining half going to development funding. At an early stage, only $ 10 million in total locks will be allowed.

The Fortune Teller NFTs will also feature works of art by “various well-known artists” commissioned by Teller. The full list will be published after the sale.

Teller Finance combines an unsecured lending protocol with the possibility of a secured loan. The undercollateralized platform is powered by traditional credit ratings used in the United States. ATM users must connect their bank accounts to a platform that calculates the loan terms based on the credit risk algorithm. Factors such as the fact that you have significant funds in your bank account and a stable monthly income will affect the maximum loan amount and the interest rate.

The credit risk assessment is published online through Teller validators, which use a subgraph to connect the cloud infrastructure to the blockchain and Teller smart contracts. Loans are disbursed through cryptocurrency or stablecoins.

Teller’s secured loans work in a similar way to platforms such as Compound, which require users to deposit collateral in excess of their loan amount. This form of lending is usually useful for creating long or short positions on cryptocurrencies using leverage.

Teller’s gradual introduction comes as more and more protocols decide strive for a “guarded start” strategy, which reduces potential losses caused by incorrect protocol functions. The alpha mode is expected to last several weeks, as the protocol allows for NFT betting and rewards.

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