Overview

Teller enables developers to implement long and short strategies in decentralized finance (DeFi) through time-based loans secured by ERC20 long tail collateral tokens. These strategies are facilitated by Teller’s isolated order books, which offer fixed-duration loans with predetermined APRs, mitigating risks associated with market volatility.

Teller built-in strategies

📈 Long Strategy Implementation

A long strategy involves borrowing assets to increase exposure to a particular token, anticipating its value will appreciate over time. Developers can utilize Teller's platform to execute this strategy by following these steps:​

1. Collateral Selection: Choose an asset from the connected wallet to serve as collateral.​

2. Loan Offer Evaluation: Review available loan offers based on the selected collateral, considering factors such as token pair, loan duration, and maximum loan amount.​

3. Loan Execution: Initiate the loan transaction, which transfers the collateral into an on-chain escrow smart contract and disburses the loaned amount to the wallet.​

4. Position Enhancement: Deploy the borrowed funds to acquire additional tokens, thereby increasing exposure to the asset.​

5. Repayment and Collateral Release: At the end of the loan term, repay the loan along with any accrued interest to release the collateral from the escrow contract.​

This approach allows developers to implement long positions without the risk of liquidation due to market fluctuations, as the loan is time-based rather than price-based.​

---

📉 Short Strategy Implementation

A short strategy entails borrowing assets to sell them at the current market price, with the intention of repurchasing them at a lower price in the future. To execute this strategy using Teller's platform, developers can:​

1. Collateral Selection: Identify an asset in the wallet to use as collateral for the loan.​

2. Loan Offer Evaluation: Examine available loan offers, focusing on the token pair, loan duration, and maximum loan amount.​

3. Loan Execution: Initiate the loan transaction, transferring the collateral into an on-chain escrow smart contract and receiving the loaned amount in the wallet.​

4. Asset Sale: Sell the borrowed tokens at the current market price to realize immediate proceeds.​

5. Asset Repurchase and Loan Repayment: At the end of the loan term, repurchase the tokens at the prevailing market price and repay the loan along with any accrued interest to release the collateral.​

Implementing this strategy allows developers to profit from anticipated declines in asset prices, while the time-based nature of the loan mitigates the risk of liquidation.​

---

🧠 Summary

Teller’s time-based loans enable structured strategies without the risk of price-triggered liquidations. These strategies are deterministic—repayment terms are fixed and independent of market volatility—making them useful for automated or algorithmic DeFi operations.

Strategy	Borrow	Swap Type	Risk Profile
Long	Stablecoin	Buy token	Token ↓ risk
Short	Token	Sell token	Token ↑ risk

🛠 Developer Considerations

• Smart Contract Interaction: Developers can integrate Teller's loan functionality into decentralized applications (dApps) by interacting with Teller's smart contracts, enabling automated loan origination, repayment, and collateral management.​

• Widget Integration: Teller provides software development widget for various platforms, facilitating seamless integration of loan features into existing dApp infrastructures.​

• Risk Management: While Teller's time-based loans reduce the risk of liquidation, developers should implement additional risk management strategies, such as monitoring collateral value and loan health ratios, to ensure the sustainability of positions.

💻 Smart Contract Patterns

Step	Function / Contract Interaction
Initiate Loan	TellerV2.acceptBid()
Repay Loan	TellerV2.repayLoan()
Escrow Management	Escrow contracts hold the collateral
DEX Trade	Integrate with Uniswap V3

Conclusion

Teller provides a robust solution for DeFi users seeking to manage positions without the risk of liquidation. By offering time-based loans with fixed terms, Teller enables users to enhance trade health, participate in yield farming, and capitalize on market opportunities while maintaining control over their collateral.