Teller Finance for decentralized lending to launch in October

Teller Finance , a blockchain project for decentralized unsecured lending, will be launching in  October along with a governance token ($TLR), liquidity program and Compount integration. At launch of its public alpha, Teller will enable public mining of the $TLR token via contributions to its liquidity pool. Teller Finance’s lending application will have an immediate Compound interface and will enable users to earn additional $TLR and $COMP (Compound’s native token) by participating as lenders. Additionally, the Compound integration will allow Teller’s liquidity providers to earn Compound’s c-token interest rate on the unlent funds, stacking an additional return on the protocol’s overall APY and liquidity mining rewards.

“The DeFi industry has grown roughly 675% in the last 12 months to more than $10 billion in value, with most of its capital locked in debt markets,” said Ivan Perez, Teller Finance COO. “The latter is just a mere fraction of the more than $215 trillion global debt market. What we’re doing is lowering the barrier to entry to a currently undifferentiated market. Consumers can use their credit history and eliminate the need to collateralize debt. Beyond lending, the ability to price out risk will accelerate DeFi’s unprecedented growth. We plan to create a new class of financial instruments that combine traditional credit assessment with decentralized networks.”

Ahead of its launch, Teller Finance has sourced over $8 million worth of $DAI and $USDC in liquidity for loans via institutional partnerships, and through the DeFi Alliance's newly launched Liquidity Launchpad Program. Teller’s liquidity mining program, capped at 10 participants and or $10 million in total liquidity provided, is limited to an institutional rewards pool commensurate to 1% of the total supply of its forthcoming governance token. Additionally, Teller has imposed a 3-month lockup on all capital contributed to the program, restricting all earned tokens to a vesting schedule equal to the length of the lock up. Teller has allocated an additional 29 million $TLR for public distribution over 12 months, constituting 29% of the network.

At the start, Teller Labs, consisting of founding team members, will dictate major governance decisions and regulate the protocol. However, the company will shift to a community-based proposal system once Teller’s network achieves sufficient adoption and distribution of TLR, the network’s governance token. Despite this, public alpha participants will have early access to the protocol’s smart contract governance.