Teddy Cash is a decentralized borrowing protocol where you can take out interest-free loans using AVAX as collateral. The borrowed funds are released in TSD (a USD-pegged stablecoin), and you must keep your position at a minimum collateral ratio of 110%. Explore how these components work in our documentation. https://docs.teddy.cash/

Teddy Dollar (TSD) is the first stablecoin on the Avalanche network that backs its issuance with AVAX as collateral. On top of the collateral, lending is protected through a Stability Pool made up of TSD, along with other borrowers who serve as collective guarantors of last resort. As a protocol, Teddy Cash is non-custodial, immutable, and has no governance.

Teddy Cash provides interest-free borrowing and aims to be more capital efficient than other lending/borrowing setups (meaning less collateral can support the same loan size). Rather than selling AVAX to access liquidity, you can deposit your AVAX in the protocol, borrow against it to withdraw TSD, and repay your loan later.