July 24, 2024
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Teller Raises $1 Million For Build First-Ever Algorithm Protocol For DeFi

Teller has redefined payment methods over the years. It is a cost payment protocol which was built by leveraging decentralization through its scalable consensus mechanism.

Teller is now again finding ways to develop its platform, to attract more visitors. In a recent, the decentralized lending startup has raised a whooping amount of $1 million to build the first algorithmic credit risk protocol for decentralized finance (DeFi). The funding was led by Framework Ventures.

It is understood that the development will combine with premier credit scoring systems like Equifax. It will be used to give average data to DeFi lending markets. Among others, Parafi Capital and Maven11 Capital also invested their bit in the first round which raised funds.

“We need solutions that offer seamless transitions between traditional finance and DeFi,” Framework Ventures co-founder, Michael Anderson said. “Credit scores are the mainstay of the lending world, and interoperability with existing systems will allow us to iteratively phase out centralized credit scoring rather than make a sudden and risky transition to trustless lending.”

Over the years, Teller has focused to reduce lending risks. “True success for DeFi requires entering mainstream appeal; we need to stop building in a vacuum. In a trustless environment, unsecured loans are tough to architect but necessary for the evolution of DeFi. Current proposed solutions of ‘shared credit lines’ only dilute risk, rather than create true user accountability.”

At present the DeFi relates on the ratios over 300% to reduce associated risks