Summary
This proposal will support Rocket Pool DAO members with DeFi lending/borrowing activities using their $RPL as collateral and receive $USDC in return. Rocket pool DAO members would utilize our time-based liquidation technique using $USDC as a lending currency.
Background
Teller is a groundbreaking DeFi platform that enables users to lend, borrow, and build an on-chain credit history on a non-custodial lending book, Eliminating auto liquidation risk for borrowers & introducing time-based liquidations.
Loans are only vulnerable to liquidation if a borrower fails to make a scheduled repayment. Unlike price-based liquidation pools that rely on health factors or other collateral factors, any change in the underlying value of the collateral does not trigger liquidation on Teller.
The loan will default if a borrower doesn’t make a scheduled repayment after a pre-determined due date (plus a grace period).
Borrowers don’t need to check $RPL prices during borrowing; lenders are also introduced to a very competitive yield.
Teller protocol supports numerous high-quality projects like Aura Finance, Quickswap, Olympus DAO, and many more to add. Teller has originated around $2M of loans, and Sherlock has audited them.
Proposal
We want to create a Rocket pool money market to support lending and borrowing $USDC against the following assets ($RPL, $rETH) using Teller V2. This partnership will allow DAO members to borrow $USDC without liquidation risks; lenders can expect competitive APY.
We propose Rocket Pool collateralize $RPL worth to borrow 100,000 $USDC of their treasury to support lending/borrowing activities on your money market. Teller’s treasury will support this loan request by providing 100,000 USDC against Rocket Pool’s $RPL to kick off our partnership with enough liquidity for your DAO members.
There’s no risk for the Rocket Pool DAO, as your loan won’t be liquidated if $RPL prices drop significantly.
Loan terms
- Lending currency: $USDC
- collateral currency: $RPL
- loan duration: 30/60/90 days
- LTV: 50%
- expected APR: 7%
Teller USP
- Borrow with no liquidation risk.
- Borrow & Lend at fixed interest rates and duration.
- Build on-chain credit history.
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