Delphi Daily

Teller is a credit risk protocol that uses bank/CeFi data to enable undercollateralized loans on DeFi money markets. The core products here are Teller’s credit risk assessment algorithm – which inputs a user’s existing credit history and financial data to decide the terms of their loan – and the protocol’s proprietary liquidity pools.

Unsecured lending is perhaps the least penetrated vertical in all of DeFi. Aave and Compound, the top DeFi debt markets, facilitate trustless loans. Loans on these platforms have to be over-collateralized by borrowers, reducing capital efficiency in exchange for mitigating insolvency risk.

With Teller, users can enjoy the composability of DeFi and the efficiency of TradFi. A user can port their financial history from their bank and use it to obtain a loan on Ethereum. This process would entail doxxing oneself but enables low-collateral or collateral-free loans.

Teller will manage its own liquidity pools, which are called “Autonomous Teller Markets.” Teller uses a distributed cloud so people can submit their credit and financial data for evaluation. The data is fed into Teller’s Credit Risk Algorithm (CRA) and it outputs terms the protocol is willing to lend at. If 2/3rds of validators approve of a loan greenlit by the CRA, it is disbursed to the applicant.

Loans on Teller can be partially collateralized or unsecured depending on a particular user’s credit history. Initially, the credit risk algori

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