Maven 11 is joining forces with Framework Ventures and Parafi Capital to help Teller disrupt the $215 trillion global debt market. Teller is a decentralized lending startup with an innovative protocol that aims to reduce lending risks for cryptocurrency holders and lower the barrier for mainstream customers.
The market for decentralized finance (DeFi) has skyrocketed recently. To date, DeFi protocols and applications hold more than $2 billion worth of cryptocurrency, with roughly $1.2 billion attributed to overcollateralized lending applications. The current state of this market is that most lending applications are vastly overcollateralized, with collateral requirements going from 150% up to 300% as a risk mitigation mechanism. This is one of the reasons that these systems have limited appeal to mainstream audiences seeking real-world loans and lending solutions. Ryan Berkun, CEO and founder of Teller:
“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.”
Ultimately, Teller will allow anyone to launch decentralized lending markets that can offer unsecured loans, while reducing lending risks for lenders. This will lower the barrier to entry for mainstream customers, who in 2019 accounted for over $140 billion worth of personal loans in the United States alone.
DeFi is one of Maven 11’s core domains of expertise, and Teller’s vision resonates greatly with how we perceive the future of finance. We’re looking forward to supporting Teller in their mission to create DeFi applications fit for everyday use. Ryan: “Maven 11 played a critical role in the conceptualization of this project and its underlying value. We are incredibly honored to have them participate in our seed raise and have full confidence they will help us realize our vision.”. Teller embodies the enormous potential of the DeFi industry and is a leading example of how this industry creates better solutions for existing needs. Balder Bomans, CIO of Maven 11: “Teller will bring credit scores and traditional finance to DeFi, and is a first step in making DeFi mainstream. We look forward to supporting Teller in these first steps to more inclusive and trustless borrowing and lending markets.”.
We’re looking forward to what lies ahead and will soon reach out with more information on the way Teller is going to disrupt debt markets.