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DeFi project Teller Finance announces Compound integration and launch of TLR token

DeFi project Teller Finance announces Compound integration and launch of TLR token

Photo by Tim Mossholder on Unsplash

Teller Finance, a DeFi project for decentralized unsecured lending, today announced the launch of its governance token (TLR), a liquidity program, and an integration with lending protocol Compound, as per a release shared with CryptoSlate.

Mining TLR on Compound

At launch, Teller will allow users to mine the TLR token via contributing to its liquidity pool. The firmโ€™s lending application will have an immediate Compound interface and will enable users to earn an additional TLR and COMP (Compoundโ€™s native token) by participating as lenders, the report said.

It added that the Compound integration will allow Tellerโ€™s liquidity providers to earn Compoundโ€™s c-token interest rate on the unlent funds, allow users to earn an additional return on the protocolโ€™s overall APY and liquidity mining rewards.

Ivan Perez, the COO of Teller Finance, said that the DeFi industry had grown roughly 675% in the last 12 months to more than $10 billion in value, with most of its capital locked in debt markets.

Perez added:

โ€œBeyond lending, the ability to price out risk will accelerate DeFiโ€™s unprecedented growth. We plan to create a new class of financial instruments that combine traditional credit assessment with decentralized networks.โ€ย 

Teller said it had sourced over $8 million worth of $DAI and $USDC in liquidity for loans via various institutional partnerships and through the DeFi Alliance’s newly launched Liquidity Launchpad Program.

The participation for that was capped at 10 participants, or $10 million in total liquidity provided, and was limited to an institutional rewards pool equal to 1% of the total supply of its forthcoming governance token.

Additionally, Teller has also 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, the release said.

Community governance to arrive soon

For now, 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 the network achieves โ€œsufficient adoption and distribution of TLR, the networkโ€™s governance token.โ€

Unlike a standard ERC-20 governance token, TLRโ€™s initial core functionality is to allow for ongoing, decentralized governance of the protocolโ€™s credit risk features. At launch, TLR owners will be able to submit, confirm, or reject pull requests to upgrade the protocolโ€™s credit risk features.

Meanwhile, Compound founder Robert Leshner commented on the launch:

โ€œThe Teller Protocol is resolving an essential problem for DeFi. Namely, lowering the barrier to entry for new DeFi users by pricing out risk, and reducing the industryโ€™s need for collateralized debt positions.โ€

DeFi fanatics have got another project to look out for.

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Posted In: DeFi

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