Introduction to Teddy Cash
Teddy Cash is a Liquity Fork on Avalanche
Teddy Cash is a fork of the Liquity protocol for the Avalanche C-Chain subnet. Teddy Cash follows Liquity’s vision of a completely decentralized borrowing protocol with interest-free loans, high capital efficiency, and a censorship-resistant stable coin (TSD or TEDDY Stable Dollar).
The mechanisms of the Liquity protocol have been proven to work effectively and to withstand black swan events, like the sudden market drop of May 19, when the stable coin was able to hold its peg with only a minor and short term peg deviation.
While Teddy Cash provides an easy to use UI, we incentivise other DeFi projects to integrate Teddy Cash directly into their frontends via a rewards mechanism. This will prevent censorship by governments and by the team itself, see Uniswap Token ban debacle.
Furthermore the protocol is completely autonomous and works without a DAO or governance. This is one lego block in Avalanche’s vision of a decentralized finance smart contract platform.
We strive to stay as close as possible to the original, and unlike other forks, do not change any of its mechanisms or reward economics.
Teddy Cash has the following benefits:
- 0% ongoing interest-rate
- 0.5% one-time fee when opening a loan
- A collateral ration of only 110%
- Governance free, no DAO, no interventions, no updates
- Directly redeemable — TSD can be redeemed at face value for the underlying collateral, always and at any time
- Censorship resistant — the protocol is controlled by nobody and cannot be halted
- No central UI that suddenly changes the rules.
TSD stablecoin
TSD is minted when users deposit AVAX as collateral and open troves. The mechanism for its price stability is described in detail in the excellent Liquity docs.
Staking TSD into the stability pool
Users can deposit TSD to the Teddy stability pool to earn both AVAX through liquidations of risky troves and TEDDY rewards as an incentives for being early adopters.
TEDDY
TEDDY tokens are earned from staking TSD to the stability pool or from staking Pangolin LP tokens (AVAX/TSD, AVAX/TEDDY).
Users can stake TEDDY to earn a pro-rata share of the borrowing and redemption fees in TSD plus AVAX from redemption gains . For more details, check Liquity’s explanation on LQTY staking (https://docs.liquity.org/faq/staking#how-does-staking-work-in-liquity)
Launch
Teddy Cash will launch in early August with a fair launch without any pre-sale or IDO. Please follow our social media to know when the launch goes live.
Follow us on:
- Discord: https://discord.gg/s9DbZr4yHw
- Twitter: https://twitter.com/TeddyCashLive
- Medium: https://medium.com/@teddy.cash
- Gitbook: Coming Soon
- Github: Coming Soon
- No official Telegram chat planned. Please use Discord.
Stay tuned for more posts on tokenomics, launch schedule and further guides.
