Teddy Dollar wallet

What is Teddy Dollar (TSD)?

Teddy Cash is a borrowing system on Avalanche in the Liquity mould: AVAX goes into a vault as collateral, and TSD is what you draw against it. The debt carries no running interest, only a one-time fee at borrowing, and the vault has to stay above a 110 percent collateral ratio or it gets liquidated. Every TSD in existence is therefore somebody's open loan, not a deposit sitting in a bank.

That design decides how the dollar peg holds. There is no reserve account behind TSD; instead it can be redeemed against the thinnest-collateralised vaults for AVAX at face value, which pushes the price up toward a dollar when it drifts low, while the ability to borrow more caps it from above. A second piece worth knowing is the Stability Pool: TSD deposited there absorbs liquidated debt and returns partly as AVAX, so a pool balance is not a fixed quantity of TSD. Coins simply held in your own wallet do not do any of that.

Day to day it behaves as an ordinary token on the Avalanche C-Chain, and every transfer or repayment burns a bit of AVAX as gas, so keep some in the same place. Supported networks in Tangem (1): Avalanche.

If you opened a vault, the key that opened it is the key that has to close it, perhaps long after you stopped thinking about the position. Tangem creates that key inside the card's chip and it stays there; a second card from the set restores the same addresses, and writing a seed phrase down is your choice, not a requirement. For a debt you intend to outlive, that kind of key storage is the practical reason to keep TSD here.