Teller raises $ 1 million in seed capital to build a new credit system for DeFi

The decentralized credit company teller raised $ 1 million in a seed financing round led by Framework Ventures Create the first algorithmic credit risk protocol for decentralized finance (DeFi).

The solution works with older credit rating systems such as Equifax, to the Provision of aggregated data for the DeFi credit markets. Parafi Capital and Maven11 Capital also participated in the investment round.

“We need solutions that enable seamless transitions between traditional finance and DeFi,” said Framework Ventures co-founder. Michael Anderson. “”Credit scores are the mainstay of the credit worldInteroperability with current systems means that we can run out of centralized credit scores instead of suddenly and riskily switching to unreliable loans. “

Reduce the entry barrier by reducing the risk

Teller raises $ 1 million in seed capital to build a new credit system for DeFi
Teller raises $ 1 million in seed capital to build a new credit system for DeFi

The protocol teller has as purpose Reduce the risk of credit for cryptocurrency holders and ultimate Lower the entry barrier for regular consumers. Interaction with existing financial databases, The solution works with the Ethereum (ETH) blockchain Developers can use a credit risk algorithm (CRA) to reduce the collateral required for a loan.

Teller’s founder and CEO, Ryan Berkunsaid:

“The real success of DeFi requires entry into the mainstream of interest. We have to stop building in a vacuum. In an environment without trust, unsecured loans are difficult to design but necessary for the development of DeFi. The solutions currently proposed.” Shared Lines of credit “only water down the risk rather than creating real user responsibility.”

The current DeFi products are based on supersaturation rates of up to 300% in order to reduce the associated risks.

DeFi is growing and growing

With the rise of popular DeFi products such as Compound, MakerDAO and Aave The sector grew exponentially with more than $ 2.5 billion in blocked assets. Earlier this week, Framework Ventures invested in another DeFi startup, Aave, for $ 3 million with Three Arrows Capital. The company has also supported other defi projects, including Synthetix, Chainlink and Kava.

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