Teddy Cash Launch Details

What is Teddy Cash?

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). What follows are the details of the project launch.

Summary

• Fair launch early August 2021. This month!
• Before receiving the official notice from our Medium or Twitter — do not interact with any contract.
• TEDDY rewards will be live at launch.
• There will be 100 Million TEDDY tokens. Allocations will follow with the next post.
• There is no pre-sale.
• Retroactive airdrops are planned for the Liquity and Avalanche communities after a lockup period.

Functionality

Teddy Cash will be fully functional at launch *except* for TSD redemptions of TSD. Users will have the ability:

• To open a Teddy Trove and borrow TSD,
• Deposit TSD to the Stability Pool to earn AVAX and TEDDY early adopter rewards
• Stake TEDDY to earn TSD
• Stake LPs AVAX/TSD, AVAX/TEDDY to earn TEDDY

TSD redemptions are disabled for the first 14 days after launch. This encourages the growth of the system during its bootstrapping phase and protects borrowers from otherwise unnecessary redemptions while they’re getting acclimated. Redemptions will be automatically enabled by the protocol after the 14 day grace period is complete.

Airdrop

Airdrops are planned for the Liquity and Avalanche DeFi communities. The details are still to be determined and we are looking forward to partnership talks with other DeFi products. However, to keep the fair launch fair, the airdrop will be retroactive once there are enough TEDDY tokens in circulation.

How to participate in the fair launch

Teddy Cash rewards early adopters of the protocol. Additionally we reward users to bootstrap liquidity pools on DEXs. Here is a guide on how to use the Teddy protocols:

First: Open a “trove” by collateralizing AVAX. Choose the desired collateralization level. The lowest you can go is 110%. If it falls below 110% your trove gets liquidated. You will receive TSD minus a 0.5% of the TSD is taken as a one-time borrowing fee.
NOTE: To be able to close a trove, you have to either buy TSD on a DEX, earn TSD by staking TEDDY for that amount

• Stake the TSD into the stability pool.
  a.) Earn TEDDY early adopter rewards
  b.) Earn AVAX from troves that get liquidated
• Deposit TSD into a AVAX/TSD LP (time-limited opportunity)
  a.) Earn TEDDY bootstrapping rewards.
• Stake the TEDDY that you have earned
  a.) Earn TSD whenever someone opens a trove
  b.) Earn AVAX whenever someone redeems TSD
• Deposit TEDDY into the AVAX/TEDDY LP pool (time-limited opportunity)
  a) Earn TEDDY bootstrapping rewards

Ape Responsibly!

When you deposit AVAX into a trove and receive TSD in return, a one-time borrowing fee of 0.5% will be automatically deducted. In order to close the trove again and receive your AVAX in full, you have to get this borrowing fee back, either by swapping TSD on a DEX, or by earning TSD from issuance gains from staking your TEDDY.

What happens when you get liquidated

Your trove is at risk of liquidation when:

• Your collateralization falls below 110%
• Teddy Cash has entered recovery mode, your collateralization falls below 150%.

When your trove gets liquidated, this will eventually happen automatically by bots, your trove is closed and your deposited AVAX is lost. However you will keep the TSD that you have received when opening the trove. This means that at most you lose 10%.

What is the value of the TEDDY Token?

• Earn TSD issuance gains every time someone opens a trove.
• Earn AVAX redemption gains everytime someone redeems TSD
• Governance token for new versions of the protocol. But the current smart contracts are immutable

Conclusion

The Teddy Cash team is excited to bring the Liquity protocol to Avalanche and we are doing everything we can to ensure the launch is fair.

Follow us to stay in tune with our progress:

• Website: https://teddy.cash
• Discord: https://discord.gg/s9DbZr4yHw
• Twitter: https://twitter.com/TeddyCashLive
• Medium: https://medium.com/@teddy.cash
• Gitbook: Coming Soon
• Github: Coming Soon
• Official Telegram chat maybe soon. Please use Discord in the meantime.