Teller Finance, a project establishing a sub-collateral lending protocol for decentralized financing, has announced the launch of the Alpha phase. This will allow some users to borrow without collateral, as is the case with most of DeFi’s other lending protocols.
Teller Alpha will only be available to holders of a proprietary non-native token called Fortune Teller NFT. The tokens will be sold on Thursday, with half of the sale proceeds going to the protocol’s liquidity pools, while the remaining half will be used to fund the development. In the early stages, only $ 10 million of the total withheld value will be allowed.
The NFT Fortune Teller will also be showcasing the works of “Various Famous Artists” commissioned by Teller. The full list will be revealed after the sale.
Teller Finance combines an unsecured lending protocol with a secured loan alternative. The secured platform is determined by the traditional credit ratings used in the United States. Cashier users should link their bank accounts to a platform that calculates loan terms based on a credit risk algorithm. Factors such as having large funds in the bank account and stable monthly income will affect the maximum loan amount and interest rate.
Credit risk scores are published on the chain by Teller auditors, who use a subscript to connect the cloud infrastructure to the blockchain Teller and smart contracts. Credits are paid using cryptocurrencies or stacked coins.
Teller Secured loans work the same way platforms like Compound and require users to provide collateral in excess of the loan amount. This type of lending is greatly beneficial in establishing long or short positions in cryptocurrencies.
Teller’s progressive rollout comes as more and more protocols choose a “safe operation” strategy that reduces the potential cost of protocol errors. Alpha mode is expected to last for several weeks as the protocol provides NFT effort and rewards.