Protocol for no-collateral loans Teller makes public alpha available to NFT owner.

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Participants of an NFT token sale would be able to use the lending protocol early on.

Teller Finance, a decentralised finance project developing an undercollateralized lending protocol, has announced the launch of its mainnet alpha tier. Certain users would be able to receive credit without having to post collateral, as is the case for most other DeFi lending protocols.

The Fortune Teller NFT, a special nonfungible token, will be required to enter the Teller alpha. The tokens will be sold on Thursday, with half of the proceeds going to the protocol’s liquidity pools and the other half going to growth. During the early stage, only $10 million in gross value locked would be permitted.

The Fortune Teller NFTs will also include artworks commissioned by Teller by “various well-known artists.” The complete list will be released after the auction.

Teller Finance incorporates a no-collateral lending protocol with the alternative of a guaranteed loan. The standard credit score tests used in the United States fuel the undercollateralized platform. Users of Teller must link their bank accounts to the app, which will determine loan terms based on its credit risk algorithm. The overall amount borrowable and the interest rate are influenced by factors such as providing significant funds in a savings account and a consistent monthly income.

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Teller’s validators, who use a subgraph to link a cloud-based infrastructure to the blockchain and the Teller smart contracts, publish the credit risk appraisal on-chain. The loans are disbursed in the form of crypto or stablecoins.

Teller’s secured loans operate similarly to sites like Compound except that users must post collateral in excess of their loan size. This type of lending is mainly useful for creating leveraged long or short positions in cryptocurrencies.

Teller’s phased roll-out coincides with an increasing number of protocols opting for a “guarded deployment” approach, which limits the possible losses from protocol failures. The protocol’s alpha phase is expected to last several weeks as it allows NFT staking and incentives.


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