[AMA] Teller Launches Rewards Program: Earn 22% Compounding Yield

Hey r/cryptocurrency

We’re the team behind Teller, a lending protocol on Ethereum, Base, Arbitrum, Polygon, Hyper, and Katana.

We’ll be around for the next 3 days to answer questions about how our platform works, how we’ve structured our rewards program, what risks are involved, and how you can start earning 22% compounding yield on all your favorite tokens.

What is Teller?

We’re a group of DeFi builders passionate about making yield simple and accessible for long-tail assets (tokens that don’t always get mainstream coverage). Our goal is to allow users to supply single tokens and earn more of the same token with no dual-asset pairs, no impermanent loss, and no lockups.

For example, you supply $MOON, you earn more $MOON automatically -- Simple. No gimmicks.

How does Teller work?

• We initially launched our rewards program on Base and have now expanded it to other networks: you can supply and stake your favorite tokens on Teller to earn up to 22% APY per block.
• No lock-ups. You can withdraw anytime.
• No impermanent loss, because the protocol doesn’t use AMM style liquidity pools for lending. Instead: peer-to-pool lending. Borrowers draw from a pool; lenders deposit; borrowers repay interest.
• As borrowing demand rises, the APY can go higher (ranging from 20-60%) because yield comes from borrower interest payments + our incentive program.
• Once liquidity in a pool hits $100K, expect the incentive portion to gradually decline, with the organic borrowing interest taking over more of the yield burden.

What are the benefits?

• For token holders: you can hold a token you believe in, deposit it, and earn more of that same token, rather than converting into something else and dealing with pairs or LP tokens.
• For risk control: because you're supplying single assets and there's no AMM, you avoid impermanent loss (which happens when you provide LP tokens and the relative price of the assets changes).
• Transparent incentives: We’ve laid out how the yield is constructed (incentive side + borrower interest side) so users can understand what they’re participating in.

What are the risks?

• Lending always has default risk — borrowers might not repay. The protocol isolates pools by token to reduce cross-token risk. If a borrower does default then the collateral is put up on an onchain dutch auction, sold, and then returned to the pool.
• Liquidity risk: While the protocol allows withdrawal anytime, if a large part of the liquidity is borrowed, there could be constraints (or interest rates might go up).
• Token risk: Because you’re holding a token, you’re exposed to price volatility of that asset (even though there's no impermanent loss).
• There is always contract risk, as with any protocol. However, Teller is 3 years old, has been audited 3 times, and uses Hypernative to protect against reentrancy attacks.

Holding $MOON?

There is currently over 1% of the $MOON supply staked on Teller!

You can now supply and stake your MOONs to start earning more MOONs.

See the image below for an example of how much you can earn:

https://preview.redd.it/np0gxios1byf1.png?640&format=png&auto=webp&s=7d7e011c5d2c53fa1cfe75092234286e251eeec0

How you can start earning:

Step 1: Go to app.teller.org

Step 2: Connect your wallet

Step 3: Select your network

Step 4: Select a lending pool

Step 5: Supply + Stake your tokens and start earning 22% yield

Ask us anything!