Tectonic

Tectonic is a multi-chain financial platform that offers opportunities for passive income and immediate collateral-backed loans. Investors can place their cryptocurrency into Tectonic to enjoy flexible yields without mandatory holding periods, while borrowers can secure loans by using their crypto assets as collateral.

Inspired by Compound, Tectonic strives to deliver smooth money market operations that fulfill diverse needs for its users:



* Crypto investors with surplus assets can earn interest on their idle assets without the need for hands-on management.
* Traders have the option to borrow cryptocurrencies to leverage both short-term and long-term market opportunities such as staking or yield farming.
* Participants can acquire cryptocurrencies to join IDOs without the need to sell off their collateral assets.

Following its December 2021 launch on the Cronos chain, Tectonic aims to extend its token offerings by concentrating on assets from ecosystems compatible with Ethereum's Virtual Machine (EVM). Looking ahead, the project intends to introduce leverage yield farming and a governance feature for its TONIC token.

Tectonic was developed under the guidance of Particle B, a startup accelerator focused on nurturing projects created on the Cronos and Crypto.org chains. The project was initiated by Gary Or, an entrepreneur and product designer passionate about blockchain technology. As the former Chief Technology Officer of Crypto.com, Or brings over a decade of experience in full-stack engineering, having managed the comprehensive development of cryptocurrency products in areas such as payment, trading, and financial services.

Tectonic is structured around three main components in its protocol: an interest rate mechanism, a liquidation module, and a community insurance module.

The interest rate mechanism employs a variable rate model akin to protocols like Compound, where rates are algorithmically set based on the lending pools' utilization and the interplay of supply and demand. At the start of each lending pool, the Tectonic team establishes interest rates and other parameters, which are segmented into two phases. Initially, interest rates increase linearly until a high-utilization threshold is crossed, after which they follow an upward-sloping curve to mirror rising liquidity demands.

The liquidation module deals with undercollateralized positions by offering discounts to liquidators, encouraging system stability. Until a certain number of liquidators are involved, the core team participates as a liquidator. Subsequently, a governance vote will decide if the core team should continue in this role.

The community insurance module, expected to launch in the first quarter of 2022, acts as a safeguard against so-called _shortfall events_, which could threaten the protocol's health, including risks from smart contracts, liquidations, or oracle failures. Users can stake their TONIC in exchange for stTONIC to protect the protocol, though their stake may be reduced if needed to address a shortfall event. Stakers can also lock their holdings for at least 90 days to earn a portion of the swap fees generated by the protocol.

Tectonic's operations are powered by its native token, TONIC, which serves both governance and utility purposes. TONIC holders can stake their tokens to fortify the protocol via the community insurance module and participate in governance by voting on proposals once Tectonic transitions to a DAO model. Token holders are able to propose, vote on, or delegate votes in line with governance protocols.

The total supply of TONIC is set at 500 trillion, distributed as follows:



* Community (50.9%): incentives for participation and rewards for liquidity mining and staking
* Team (23%): subject to a 48-month vesting plan
* Ecosystem reserve (13%): intended for collaborations with ecosystem partners, advisors, and other community initiatives
* Network security (13%): allocated for security audits, protocol operations, infrastructure upgrades, liquidity provisioning, listing needs, and other purposes.

Tectonic is based on the Cronos blockchain, which is compatible with Ethereum and operates parallel to the Crypto.org blockchain, similar to how Binance Chain and Binance Smart Chain function. Built on the Cosmos SDK, Cronos uses a proof-of-authority (PoA) consensus mechanism and supports the Cosmos Inter Blockchain Communications (IBC) protocol, enabling it to connect with the Cosmos ecosystem of decentralized applications (DApps).

Despite Tectonic’s strong use case and innovative settlement layer choice, its vast token supply makes reaching one cent unlikely. However, if the cryptocurrency market rebounds from the downturn at the end of 2021, TONIC could potentially return to its peak value of $0.000004029.

You can purchase TONIC on the Crypto.com Exchange and Hotbit.

For those interested in learning how to start buying cryptocurrencies, additional information can be found in our guide.