What can Teddy Cash do for me?

You might ask yourself this exact question and there are good reasons, especially for the seasoned DeFi user who wants to stay capital efficient and maximize their ROI.

Unlike existing borrowing/lending protocols on avalanche, with Teddy Cash you pay no recurring interest rate for taking a loan but instead a one time fee. It’s unique and immutable architecture allows you to unleash your inner degen and go with close to 110% collateralization.

To be on the safe side though, in case of the rare instance that recovery mode kicks in, we advise you to stick with an above 150% collateralization.

For comparison, if we take a look at the current leading liquidity market protocol BENQI, it requires a minimum of 200% over-collateralization and still has recurring fees which leads to you having to adjust your position for longer time frames.

Got bills to pay?

Sadly unexpected (and expected!) expenses sneak up on you. Given that you, dear reader, believe that AVAX is a good investment, selling your stack to pay temporary bills is the last thing you want to do. And if you sell your crypto to pay your bills, you not only lose out on future gains but there can be serious tax consequences. In some European countries, capital gains tax rates are significant. In the USA, you are penalized if you have held your crypto for less than 12 months and can pay up to 37%.

Instead you could just take a interest free loan from Teddy Cash and enjoy both, your partner’s goodwill and the excitement of a mooning asset.

What’s the difference between Teddy Cash and other lending protocols?

We reward liquidity providers with our TEDDY token, which can be used to earn fee revenue from the protocol. Single sided, no risk of impermanent loss. No governance token for further decentralization.

What would be a viable strategy?

• Deposit AVAX into a trove and take out a TSD loan matching your risk management strategy
• Swap half of the TSD you just received on Pangolin or for USDT.e and add liquidity to Gondola Finance
• Deposit your LP tokens into the farm and receive over 100% on a stable pair, while still being exposed to your AVAX

Farming TEDDY works in different ways.

Either you become a liquidity provider and get comfy in our AVAX/TSD and AVAX/TEDDY farms or you deposit TSD into the stability pool.

So called stability providers supply the protocol with TSD, which is burned in case of a liquidation. As a compensation they earn a % of the underlying collateral plus additional TEDDY tokens. And because liquidations happen just below 110% you still have a net positive dollar value in AVAX.

About Teddy Cash

Teddy Cash is a completely decentralized borrowing protocol with interest-free loans, high capital efficiency, and a censorship-resistant stable coin (TSD or TEDDY Stable Dollar).