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TONIC Staking
What is TONIC Staking?
- TONIC staking is an upcoming feature on Tectonic allowing TONIC holders to deposit their tokens into the TONIC staking module, in return for yield rewards.
- Here’s the general idea: stakeholders receive rewards, including a share of protocol revenue generated from fees paid by borrowers
- TONIC staking will drive further utility for the TONIC token, it seeks to align incentives with the long-term believers of our protocol and benefits token holders.
- Other uses for staked TONIC include acting as community insurance if a shortfall event occurs and will eventually be used to vote on Tectonic’s governance proposals
TONIC staking will initially launch with staking rewards and the other use cases, community insurance and governance, will be rolled out in the coming months.
How do I stake?
1. Go to "TONIC" from the navigation menu at the top of the Tectonic website.
2. You will see the staking module panel in the column on the right, next to the Airdrop claim panel.
3. Input the amount of TONIC you would like to stake and submit.
4. You should now see the amount of TONIC you've staked in the bottom section of the staking panel. You're done!
How do I unstake?
1. Go to "TONIC" from the navigation menu at the top of the Tectonic website.
2. You will see the staking module panel in the column on the right, next to the Airdrop claim panel. Click on the "Unstake" tab.
3. Input the amount of TONIC you would like to unstake and submit. Once the transaction is complete, you will see a countdown timer showing the remaining time in your cooldown period.
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4. Your unstaked TONIC will be available for withdrawal to your wallet once the cooldown period expires. Come back to the Tectonic website to withdraw your unstaked TONIC then.
Important notes:
- After unstaking, your TONIC will be go through a 10-day cooldown period, during which your TONIC cannot be withdrawn to your wallet
- You can unstake a portion of your staked TONIC.
- You can also unstake more TONIC during the cooldown period. However, this will reset your cooldown period to 10 days.
How does it work?
- 1.TONIC token holders can stake TONIC into the staking module and receive xTONIC based on the TONIC : xTONIC exchange rate at the time.
- 2.Being a yield-bearing token, the TONIC : xTONIC’s exchange rate increases over time, without any action on your part!
- 3.As a result, when you withdraw your TONIC from the staking module, you will receive more TONIC compared to when you made the initial deposit.
Why does the TONIC : xTONIC exchange rate increase?
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.
Is there any lockup period?
You can request to withdraw 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.
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Is the TONIC Staking contract audited?
Last modified 2mo ago