Teller Network has announced the official launch of its testnet. The open-source platform will make it possible for users to earn interest from loans while also providing liquidity to Teller’s lending pools.
According to an official blog post, Teller protocol also helps analyze consumer information; subsequently, evaluating important information like default risks from the consumer data it obtained. Interestingly, the consumer data collected also makes it possible for the platform to provide unsecured crypto-based loans to interested customers.
The platform also makes use of its client’s credit record to issue loans and calculate the loan’s annual interest rate. This method, to a large extent, reduces the need for collateral before issuing loans. The annual interest rate would also be calculated using both market conditions and individual client risk (as previously stated, this is calculated using the client’s credit history).
The testnet launch, simply put, will make it possible for users to deposit DAI tokens for both borrowing and lending. Interestingly, early users will have access to both secure and unsecured loans on the testnet. However, for now, only whitelisted dApp partners will have access to the unsecured loan option. At the time of writing, only Uniswap and Compound have been listed as partners (integrated).
Teller Testnet Roadmap
Starting Monday, February 22, 2021
- Protocol v1 final testnet is expected to go live.
- Test run the protocol integration with both Uniswap and Compound.
- Next is to prepare to launch contracts on the mainnet. This will involve both the private Alpha and public Alpha.
According to the official blog post, Teller will pay “100,000 DAI for its Tier 1 and Tier 2 private Alpha users.”
- Tier 1 will involve the protocol’s team members and other institutional-grade liquidity providers.
- Tier 2 will include all interested users who fulfill Teller’s whitelist requirements.
- Lastly, Tier 3 containing all registered public Alpha users on the waiting list.
Next on Tuesday, March 8, 2021
- Liquidator manuals will be published.
Monday, March 22, 2021
- The team will focus on monitoring the system to ensure it’s working as intended while also carrying out more updates
Lastly, Wednesday, April 1, 2021
- Will involve testing its integration with newly introduced protocols and the launch of the Testnet version v1.1.
Purpose of the Testnet
According to the official blog post, the launch will involve the rollout of contracts on the Rinkeby testnet. This, in essence, will help test the Teller protocol in varying conditions, therefore, ensuring a top-notch experience for all participants. Apart from this, the testnet will also help educate interested users about the proposed protocol. Users will also be able to test several of the platform’s features, especially its credit risk algorithm.
Teller testnet will also ensure:
- Better research on the user experience (UX) by collating feedback from testnet participants.
- It will also stress-test the network’s credit risk algorithm.
- Allow for adequate preparation for its official mainnet launch.
- Facilitate more integrations as well as the testing of new dApps on the platform.
Notably, the apex point of the entire testnet is to prepare for the launch of the Teller Alpha protocol. The launch will take place in two distinct stages, namely: Private and Public.
Teller is a platform designed to create money markets where users can easily receive loans, earn interest on deposits, etc. simply from their credit history and without the need for collateral.
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