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About Tectonic
Key Points
- Tectonic is a cross-chain money market for earning passive yield and accessing instant-backed loans.
- It aims to provide seamless money market functionalities for investors, traders, and users.
- Tectonic was incubated by Particle B and founded by Gary Or, a seasoned entrepreneur and product designer.
Core Modules
- Interest rate mechanism: adapts a variable interest rate model similar to Compound.
- Liquidation module: liquidates undercollateralized borrowing positions and offers a liquidation discount.
- Community insurance module: acts as a mitigation tool in case of a shortfall event.
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About Tectonic
At the forefront of innovation, Tectonic is a pioneering force in the realm of cryptocurrency and blockchain technology.
Introducing Tectonic (TONIC): A Comprehensive Overview
Tectonic is a pioneering cross-chain money market that empowers investors to generate passive yield and gain instant access to collateral-backed loans. By depositing their crypto assets, investors can earn dynamic yields without being bound by lockup periods, while borrowers can tap into liquidity by providing their crypto assets as collateral.
Tectonic is modeled after Compound and strives to offer a seamless money market experience, catering to a diverse range of use cases that cater to the unique needs of its users:
- Savvy investors can unlock passive income streams by leveraging their dormant crypto assets, sans active management.
- Ambitious traders can tap into borrowed crypto assets, seizing short-term or long-term opportunities such as staking and yield farming.
- Users can gain access to cryptocurrencies, enabling participation in IDOs without sacrificing their underlying collateral.
Following its successful mainnet launch on the Cronos chain in December 2021, Tectonic is poised to expand its token support by integrating assets from EVM-compatible ecosystems. Looking ahead, the project is committed to introducing leverage yield farming and a governance module for its native TONIC token, further enhancing its capabilities.
The Visionaries Behind Tectonic: Meet the Founders
Tectonic was nurtured by Particle B, a visionary startup accelerator specializing in cultivating projects built on Cronos and the Crypto.org chain. Founded by Gary Or, a multifaceted entrepreneur, hacker, and product designer with an ardent passion for blockchain technology. As the former CTO of Crypto.com, Or boasts an impressive decade-long tenure of full-stack engineering expertise, during which he spearheaded the comprehensive development of crypto products spanning payment, trading, and financial services.
Unveiling the Unparalleled Attributes of Tectonic
Tectonic is comprised of three integral components within its protocol: an interest rate mechanism, a liquidation module, and a community insurance module, each working in tandem to form a robust framework.
The interest rate mechanism employs a dynamic interest rate model, akin to that of money market protocols like Compound. The interest rates are algorithmically determined, taking into account the utilization rate and the delicate balance between supply and demand within the lending pools. Initially, the Tectonic team sets the interest rates and other key parameters at the inception of a lending pool, with rates being bifurcated into two distinct stages. Prior to reaching a threshold of high utilization, interest rates adhere to a linear curve. Subsequently, rates are calibrated according to an upward-sloping curve, thereby reflecting the heightened demand for liquidity.
The liquidation module is designed to rectify undercollateralized borrowing positions, offering a discounted rate to incentivize liquidators to maintain system stability. Initially, the core team will assume a dual role, serving as liquidators until a predetermined number of liquidators is attained. Subsequently, a governance vote will determine whether the core team will relinquish its liquidator position.
The community insurance module is slated to debut in the first quarter of 2022, serving as a safeguard against potential pitfalls. Tectonic defines these pitfalls as
shortfall events
, which can compromise the protocol’s integrity, including smart contract risks, liquidation risks, and oracle failure risks. By staking their TONIC, users can receive stTONIC in return, thereby bolstering the protocol’s resilience. However, in the event of a shortfall, their stake may be subject to slashing, as the allocated funds are utilized to mitigate the damage. Furthermore, stakers will have the option to lock their positions for a minimum of 90 days, thereby accruing a share of swap fees generated by the protocol.
What Is the Circulating Supply of Tectonic (TONIC) Coins?
Tectonic is fueled by TONIC, its indigenous governance and utility token. By staking TONIC, holders can contribute to the protocol’s security through its community-driven insurance module and exercise their voting power on governance proposals once Tectonic evolves into a decentralized autonomous organization (DAO) model. Furthermore, token holders are empowered to submit and vote on proposals, or delegate their voting authority in accordance with the established governance framework.
The total supply of TONIC is capped at 500 trillion, with a token distribution outlined as follows:
- Community (50.9%): incentivizing participation and fostering liquidity through mining and staking rewards
- Team (23%): allocated according to a 48-month vesting schedule, ensuring a dedicated and committed team
- Ecosystem reserve (13%): reserved for strategic collaborations with ecosystem partners, advisors, and future community-driven initiatives
- Network security (13%): dedicated to ensuring the integrity of our network through security audits, protocol operations, infrastructure upgrades, liquidity provisioning, and listing requirements
The Tectonic Network’s Robust Security Framework: A Comprehensive Overview
Tectonic is built on Cronos, an Ethereum-compatible blockchain that operates in tandem with the Crypto.org blockchain, analogous to the relationship between Binance Chain and Binance Smart Chain. Leveraging the Cosmos SDK, Cronos employs a proof-of-authority (PoA) consensus mechanism. Notably, it also supports the Inter-Blockchain Communication (IBC) protocol of Cosmos, thereby facilitating seamless bridging to the Cosmos ecosystem of decentralized applications (DApps).
Will Tectonic (TONIC) Surge to $0.01?
Notwithstanding Tectonic’s robust use case and its pioneering selection of settlement layer, the exceedingly high token supply will preclude it from attaining a valuation of one cent. However, should the cryptocurrency market rebound from its correction by the end of 2021, TONIC may revisit its all-time high of $0.000004029.
Where to Acquire Tectonic (TONIC): A Comprehensive Guide
TONIC is now listed and accessible on prominent cryptocurrency platforms, including Crypto.com Exchange and Hotbit.
For those seeking to delve into the world of cryptocurrency investment, our comprehensive guide provides a wealth of information on how to initiate your cryptocurrency-buying journey.
Associated Resources:
Discover Aave (AAVE), a pioneering decentralized money market protocol.
Discover Curve DAO, a pioneering decentralized money market tailored specifically for stablecoins.
Discover the Fundamentals of Crypto Lending.
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