FAQ - Teller Docs

What makes Teller unique?
Teller is the first DeFi protocol built to evaluate consumer credit risk. This allows Teller to offer cryptocurrency loans that do not require a collateral amount to exceed principal loan value. This is achieved by assessing a user’s credit risk through personal consumer financial data. Consumer data is privately provided to Teller’s proprietary validators running community-approved Credit Risk Algorithms (CRAs).
Furthermore, existing DeFi protocols will be able to integrate Teller’s credit risk features to minimize user exposure, and lower the costs of user adoption.
Is it safe to user Teller?
All decentralized finance (DeFi) protocols present inherent risks given the infancy of the industry as a whole. Please do your own research before using Teller. That said, Teller is has undergone extensive code audits by some of the leading firms in the industry. For more information check back at a later date for our final reports, which will be updated for review on our Safety & Audits section. 
What is an ATM?
ATM stands for Autonomous Teller Machine. Teller's ATM is a decentralized money market smart contract that is connected to a Credit Risk Algorithm (CRA). Users interact with Teller through the ATM, and can request loans using personal consumer data that is computed by Teller's open-source CRA. Developers can also create new and unique ATMs to service other financial product markets such as insurance, mortgages, car loans, and many more.
For example, an ATM needs:
Asset (e.g. DAI)
Collateral (e.g. yTokens)
Data (e.g. Plaid)
CRAs (e.g. LTB, LTNI)
What is a CRA?
CRA stands for Credit Risk Algorithm, an open-source algorithm through which is computed by Teller validators to determine a potential borrower’s creditworthiness. This is generally achieved by assessing the borrower’s consumer data, e.g. their banking history, which is retrieved through whitelisted data providers that have been approved by Teller's community or core team.
Who is in control of the Teller Protocol?
At genesis, the protocol will be controlled by the core team members and developers. Over time, Teller will introduce a new governance system that will allow for ongoing, decentralized governance of the protocol’s credit risk features including but not limited to:
Market variables such as Asset Premiums and Supply-To-Debt percentages.
Credit Risk Algorithms (commit hash of CRA used in related markets).
Data Providers used in related markets.
What kind of loans can I take out through Teller?
There are two types of loans that can be accessed through the Teller Protocol:
Unsecured loans 
These are loans that do not require collateral and are approved by evaluating a borrower’s banking history, which will serve as a measure of the borrower's creditworthiness. Borrowers that connect to their bank account through Teller's data providers can receive as low as near 0% interest rates. Unsecured loan interest rates will depend on a borrower's creditworthiness, which is assessed by Teller's CRA.
Secured loans
As the name suggests, secured loans will require a minimum collateral requirement that is determined by the protocols global collateral ratio. Borrowers that request a secured loan will still be able to connect their bank account to reduce their interest rates based on their creditworthiness and banking history. 
What can I do with a loan?
Here are a few ways that loans obtained from Teller could be used:
Margin Trading
Borrow 100 USDC with 30% collateral 
Swap 100 USDC for LINK on Uniswap
Net Result: 3.3x Leverage on LINK
Lending Rate Arbitrage
Borrow 100 USDC with 100% collateral at 5% APR
Supply 100 USDC on Compound at 7% APY
Net Result: 2% APY on 100 USDC
Liquidity Mining
Borrow 100 USDC with 0% collateral at 5% APR
Supply 100 USDC on Compound at 5% APY
Earn $COMP for the 100 USDC supplied
Net Result: $COMP earned without collateral
Yield Loops
Borrow 150 USDC at 5% APR
Supply 150 USDC on Compound at 5% APY
Earn $COMP on 150 USDC Supplied
Borrow 100 DAI from Compound at 3% APR
Supply 100 DAI on Teller at 3% APY
Earn $COMP on 100 DAI Supplied
Net Result: 1.66x $COMP Earned
No-Loss Lottery
Borrow 100 USDC with 0% collateral
Supply 100 USDC to Pool Together for weekly lottery
Net Result: Earn a chance to win the lottery without collateral
Arbitrage
Borrow 100 USDC with 100% collateral
Supply 100 USDC on Curve for yCRV
Redeem 110 DAI from Curve
Swap 110 DAI for 110 USDC on Uniswap
Net Result: +10 USDC
What is a tToken?
A tToken acts as an ownership proof, or a proof-of-liquidity, for funds deposited to the Teller protocol. tTokens are interest-bearing assets, i.e. lenders will earn interest on the underlying assets deposited to the protocol. Upon depositing an asset like DAI to the lending pool, for example, the lender receives minted tDAI tokens that will be burned and redeemed as interest returns once the lender withdraws the deposited funds. 
Why is my loan in escrow?
When borrowers request a loan that has lower than the industry average of collateral provided, the loan is held in an Escrow contract in order to secure lenders' assets and further the trust between lenders and borrowers on the Teller protocol. Borrowers can only spend the funds in the Escrow through whitelisted dApps that have been authorized by the Teller protocol. 
Loans that have an industry average (or higher) of collateral provided will be sent directly to the borrower's wallet with no restrictions. 

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Contents

What makes Teller unique?

Is it safe to user Teller?

What is an ATM?

What is a CRA?

Who is in control of the Teller Protocol?

What kind of loans can I take out through Teller?

What can I do with a loan?

What is a tToken?

Why is my loan in escrow?