Teller, a California based Blockchain project for decentralized lending incubated by A16Z’s crypto startup school, has now secured $1 million in a seed funding round.
Teller is founded by Ryan Berkun. Teller is introducing an under-collateralized DeFi lending protocol that can offer credit risk analysis. It will aggregate data from legacy credit scoring systems, like Equifax, into decentralized lending markets.
Ryan Berkun, Teller founder, and CEO said, “Yield farming is a way for many DeFi protocols to temporarily bootstrap liquidity and generate a convection of interest among crypto traders. But 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.”
Michael Anderson, the co-founder of Framework Ventures, said, “We need solutions that offer seamless transitions between traditional finance and DeFi. 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.”
Teller’s Latest Funding
The round was backed by the Framework Ventures, followed by the Parafi Capital and Maven11 Capital.
The company as of now has plans to use the new funds to continue expanding its development efforts. The company intends to develop the first-ever algorithmic credit risk protocol for decentralized finance (DeFi), notes the announcement.