DeFi Protocol Teller Facilitates First Uncollateralized Mortgage Loan

The USDC.homes, a crypto mortgages platform facilitated its first crypto loan via DeFi lending protocol Teller to a resident of Austin, Texas who bought a $680,000 worth condo with a $500,000 loan issued in USD Coin (USDC) stablecoin over the Polygon (MATIC) network. First Unsecured DeFi Mortgage Teller described the process as the “first unsecured DeFi mortgage.” It has been termed as such as the borrower didn’t put up any collateral. However, he did make a down payment in USDC but secured the loan based solely on his credit score. Loans from USDC.homes are issued in USD, borrowers can also make payments in cryptocurrencies such as Ethereum (ETH), Bitcoin (BTC), or USDC. Built using the Teller lending protocol and backed by the TrueFi project, the platform issues uncollateralized crypto loans and can issue upto 30-year mortgages as large as $5 million at a 5.5% interest rate which require a 20% down payment. Each borrower’s down payment is staked, which accrues interest over time which can then be used to pay off their loan. According to the company, the usual method to liquidate one’s crypto for fiat to secure a loan exposes American borrowers “to the damages of taxation, fees, and a loss of position.” USDC.Homes has plans to expand beyond Austin to all of Texas and, eventually, to the rest of the United States.The post DeFi Protocol Teller Facilitates First Uncollateralized Mortgage Loan first appeared on Cryptoknowmics-Cry...