A First in DeFi: CreditFi and Koala Debut Travel Protection Lending on Teller
Destination: Lender-Backed Travel Protection
The journey to V2 continues as more focused markets are launching with the Teller protocol as their foundation.
CreditFi and Koala have partnered together to debut lender-powered travel protection with crypto on a global scale. In a time where traveler volume is more volatile than usual, users can benefit from APRs of at least 15% when providing their liquidity.
“We’re excited to help our partners unveil the first DeFi-native travel protection program and usher in this new era of lending and borrowing tied to travel,” said Teller Founder and CEO Ryan Berkun “CreditFi, in partnership with Koala, gives travelers peace of mind and a positive lender incentive, while offering DeFi services to an industry that has historically only been supported by traditional finance.”
It’s inspiring to see the manifestation of blockchain-based solutions solving new and current challenges.
Unexpected Stops
Over the course of the global pandemic, travelers and institutions alike have witnessed previously unseen changes in the number of travelers, health-related travel restrictions, and available professionals. Issues such as the sudden restriction of entry to a destination and spikes in operational and logistical performance we experienced across the airline, hotel, and tourism industries alike.
Last month in the United States, airlines canceled more than 3,500 domestic flights in a single weeked. In addition to this, experts believe that relief to the issues plaguing the travel industry will not arrive in time for the summer travel craze. Apparently it’s flight was delayed.
One particular result of these changes was the heightened popularity of products and services that offered travelers ways to preserve the initial cost of their trip, in the face of increased flight cancellations, missed transfers, and more.
CreditFi: Connecting Polygon, Koala, and Ensuro
Stepping up to combat this challenge, Koala provides assurance to travelers by allowing them to cancel trips for any reason, and retain the full ticket value for delayed or missed flights.
“When we founded Koala, we knew that shifting the travel protection landscape to a digital-first approach would both save users money and bring back confidence to travel,” said Ugo Weyl, Koala’s CEO & Co-Founder. “Bringing the first travel protection option to DeFi, using the Teller Protocol, is a monumental move in our digital-first service strategy.”
While there may be uncertainty in the travel landscape, it’s relieving to know that organizations like Koala are keeping users in mind.
CreditFi is powered by Teller and Polygon, and enlists Ensuro smart contracts. As lenders, users can contribute their capital to a USDC pool. Once staked, users can benefit from APRs of at least 15%.
As CreditFi is on the Polygon blockchain, users can avoid high gas fees and wait times while still preserving security and decentralization from the network.
“We are grateful to be a part of bringing DeFi to travel protection with Koala through providing Polygon’s blockchain framework to Ensuro and Teller,” said Polygon Head of DeFi and Labs Hamzah Khan. “This is yet another innovation that shows how services once previously found in traditional finance only are coming to DeFi.”
With liquidity pooling, Ensuro is working to become the first decentralized, fully licensed insurer.
“The product launched with Koala and CreditFi is a clear example of how Defi is permeating our everyday lives,” said Ensuro CEO Marco Mirabella. “Smart contracts automate and bring transparency to the processes, and produce more appealing and convenient products for the end-users.”
Take your seat. Lending in DeFi is preparing for takeoff.
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