Tectonic

What is Tectonic?

Tectonic is a decentralized non-custodial algorithmic-based money market protocol that allows users to participate as liquidity suppliers or borrowers. Suppliers provide liquidity to the market to earn a passive income, while borrowers can borrow liquidity in an over-collateralized fashion. The protocol's design and architecture are modeled after Compound, a proven and audited protocol, and it features an incentive program powered by xTONIC, the native token of the Tectonic protocol.

Fundamentals

Supplying Assets to Tectonic: Users can supply their cryptocurrencies onto the platform as liquidity providers. Tectonic aggregates these supplies into a pool of assets controlled by smart contracts, making it a fungible resource for the protocol. In return, liquidity providers receive corresponding tTokens, representing their supplied assets and accruing interest over time.

Borrowing Assets from Tectonic: Users can borrow supported cryptocurrencies using their supplied assets as collateral. Each asset carries a Collateral Factor, determining the maximum amount available to be borrowed. Borrowers face the risk of liquidation if the value of their collateral drops below a certain threshold, but they can prevent this by adjusting their collateral or repaying some of their loan.

Isolated Pools

Tectonic introduces isolated lending pools, carefully curated environments with stricter money market parameters and a select list of supported tokens. These pools, segregated from the main market, aim to provide stability amidst potential price volatility and liquidity concerns associated with smaller-cap tokens. By maintaining separate markets with unique features and parameters, Tectonic ensures risk isolation and a safer environment for its users.

TONIC Token

The governance of the Tectonic protocol is facilitated through the TONIC token. With a total supply of 500 trillion tokens, TONIC holders can participate in protocol activities and earn rewards through various mechanisms such as liquidity incentives and staking. The token allocation is distributed among team members, ecosystem reserves, network security, community incentives, and a small portion for airdrops.

TONIC Rewards Boost

Tectonic aims to enhance TONIC utility and incentivize user activity through the TONIC Rewards Boost feature. By staking TONIC for xTONIC and locking it in a vault, users become eligible for increased rewards from liquidity incentives. The boost multiplier is determined based on factors like the quantity of xTONIC locked, locking duration, and potential NFT boost. This feature encourages long-term TONIC holders to actively participate in the protocol.

tTokens

In return for their supplied assets, liquidity providers receive corresponding tTokens, representing their holdings in the protocol. These tTokens continuously increase in value relative to the underlying assets, reflecting accrued interest. Supported tTokens include stablecoins like TrueUSD, Dai, Tether, and USD Coin, as well as other cryptocurrencies like Wrapped BTC, Wrapped Ether, Tectonic, Cronos, Cosmos, Cardano, and VVS Finance. Tectonic plans to expand its token support in the future based on community feedback.

Team Background

Tectonic was nurtured by Particle B, a startup accelerator focused on incubating projects developed on Cronos and the Crypto.org chain. It was established by Gary Or, an entrepreneur, hacker, and product designer deeply passionate about blockchain technology. Or, having served as the former CTO of Crypto.com, brings over a decade of full-stack engineering expertise to the table. Throughout his career, he has led the comprehensive development of various crypto products spanning payment solutions, trading platforms, and financial services.

Project Development

Tectonic is thrilled to unveil its second isolated pool, the DeFi Pool, following the successful launch of the Veno Pool in March. The DeFi Pool will feature partner tokens, including Ferro Protocol and Veno Finance, offering users various strategies for maximizing returns. Ferro Protocol, with its StableSwap AMM, aims to optimize trading rates for stablecoins and pegged assets, utilizing $FER tokens to incentivize users. Meanwhile, Veno Finance presents a liquid staking protocol where users stake assets to receive yield-bearing receipt tokens, utilizing $VNO tokens across the Cronos Ecosystem.

The DeFi Pool offers four distinct strategies for users to earn rewards:

• Earn Passive Yield: Users can supply assets to earn passive yield on tokens listed in the DeFi Pool.
• Yield Farming: Borrowed assets can be used to provide liquidity on DEXs like VVS Finance, MMF, Crodex, Cronaswap, and Ferro Protocol, allowing users to leverage farming opportunities.
• Leveraged Yield Farming: Users can borrow assets from Tectonic to engage in yield farming on platforms like Single Finance, offering higher APR and APY.
• Arbitrage Opportunities: Users can execute arbitrage strategies by borrowing tokens with low APYs from the DeFi Pool and supplying them to platforms with higher APYs, such as Single Finance.

These strategies provide users with diverse avenues to optimize their returns while participating in the DeFi ecosystem on Cronos.

Tectonic Price Analysis

As of November 24 2024 Tectonic has a marketcap of $27M. This is {{percentagefromath}} from its all time high of $0.0000019. In terms of its tokenomics, there's a total supply of 500T with 51% currently outstanding. Keep in mind Tectonic has a fully diluted value of $53M which many investors might interpret as overvalued.

Of course, don’t trust price predictions alone, always check the Coinrotator token screener to follow the trending market.