Teller Finance

Code Review - 03/14/2021

Marcus Kelly avatar
Written by Marcus Kelly
Updated over a week ago


Teller Finance is an open-source protocol that interacts with consumer data to calculate default risk and offer unsecured crypto-asset loans. Users can supply liquidity to the protocol’s lending pools and earn interest from repaid loans. Teller leverages borrowers’ credit history to calculate an annual interest rate based on market conditions vs. consumer credit risk, reducing or eliminating the need for collateral. Current DeFi protocols rely on high collateralization ratios to mitigate risk for the lending and borrowing of crypto assets. overcollateralized loans present a barrier to entry for individuals who do not currently own crypto, or have limited financial means, further narrowing the gap between DeFi and the addressable global loans market.

Teller’s distributed cloud network interacts with consumer data to calculate credit risk and offer unsecured loans. The protocol claims to already have integration with Plaid and plans to offer integration with other external data providers allowing users to access Teller’s money markets and connect with other DeFi protocols. Teller has an active Github repo with overall good quality code. Teller is however there are obvious risks bridging off-chain data to on-chain like user privacy and node operators collusion etc. and we need to assess how the protocol will be able to sustain any possible attacks when more information is available. Teller’s Token is not trading at the moment. We will need to wait for the team to make further announcements but definitely something very interesting in the DeFi space to keep an eye on.

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