- Teller Finance is set to integrate Chainlink data feeds and offer undercollateralized crypto loans.
- Lending pool liquidity providers earn interest on the loans.
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DeFi lending project Teller Finance has announced its upcoming integration with Chainlink. The oracle provider will provide Teller with three cryptocurrency price feeds via its Price Reference Data oracle networks.
Teller to Offer Unsecured Crypto Loans
Teller 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’ real-world credit history to calculate an annual interest rate (APR) that is based on market conditions vs. consumer credit risk, reducing or eliminating the need for collateral.
To assist on the crypto side, Teller will leverage data from Chainlink’s DAI/ETH, USDC/ETH, and LINK/USD feeds, among others.
The market-leading oracle provider will allow Teller to capture real-time price information on the protocol’s assets under management, ensuring that all APR calculations for unsecured loans reflect real market conditions.
Chainlink’s oracles capture this information off-chain from numerous high-quality data aggregators and make it available on-chain for any smart contract-enabled blockchain.
Lower Collateral Requirements The Next-Step in DeFi
Teller Finance was designed to develop decentralized loan products, without collateralized debt, reducing consumer risk and costs. Teller can interoperate with traditional finance data, offering users the tools to develop a new suite of trustless financial instruments.
Ivan Perez, Co-Founder at Teller, said:
“Teller calculates consumer credit risk as a measure of personal financial data, e.g. debt to income ratio. The latter translates into an APR that is not only based on money market interest rate, but also…