1) Go to the Earn page. Ensure you are on the first tab labelled “TONIC”
2) You will see the "TONIC Staking" module in the column on the left
3) Input the amount of TONIC you would like to stake and click "Stake"
4) Once you're happy with the amount to be staked, submit the transaction by clicking "Stake"
5) You will then need to confirm this in your wallet
6a) If the transaction is successful, you will see this Success message. If you wish to earn even more TONIC rewards, click on the "Lock xTONIC" button, which will then take you to the Vaults page.
6b) If not, you can close the Success message. Now you should be able to see the amount of TONIC you've staked in the bottom section of the TONIC Staking panel
Commonly asked questions
Q) How much xTONIC will I receive from staking?
A: The amount of xTONIC you receive after staking your TONIC will be based on the TONIC:xTONIC exchange rate at the time. You can find the exchange rate in the TONIC Staking module here:
Q) How do I determine what share of Tectonic's revenue I have received from holding xTONIC?
A: xTONIC is a yield-bearing token. You can calculate your share of revenue from the TONIC:xTONIC exchange rate. This exchange rate is expected to increase over time as more revenue is earned on the platform. This increasing exchange rate means that when you withdraw your TONIC from the staking module, you will receive more TONIC compared to when you made the initial deposit.
Q) Why does the TONIC:xTONIC exchange rate increase over time?
A: The protocol will direct 50% of all protocol revenue (from liquidation fees and loan repayment fees) into the staking module contract, which will be converted programmatically by smart contracts into TONIC via other decentralized exchanges, such as VVS Finance.
This is great news for you as a holder of TONIC tokens because this exerts buying pressure on TONIC markets. As more people borrow and repay their loans on Tectonic, the staking module will buy more TONIC off the market, resulting in a lower market supply.
Since the exchange rate between xTONIC and TONIC is determined by the quantity of xTONIC minted relative to the amount of TONIC, the xTONIC : TONIC exchange rate will only increase over time.
Q) Is the TONIC Staking contract audited?
A: Yes it is audited by Slowmist. The audit report can be found here.
Q) Is there a lockup period after I have staked my TONIC?
A: You can request to unstake your TONIC any time, however there is a cooldown period of 10 days. After the cooldown period expires, you will be able to withdraw your TONIC.
The amount of TONIC you will withdraw is fixed at the time when you requested the withdrawal.
Q) How do I find out how much revenue Tectonic has paid out to xTONIC stakers since launch?
A: Great question! You can find the amount, in USD terms, on the TONIC page here:
