Tectonic is a decentralised non-custodial 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 are able to borrow liquidity in an over-collateralized fashion.
First, you need to enable the asset you want to use as collateral on the Dashboard. Then just select the asset you want to borrow and click borrow! Do take note on your LTV and be careful of liquidations!
During the initial phase of Mainnet launch, we will disable the supplying and borrowing of the same asset. As an example, this means that if you have supplied USDC, you will not be able to use the USDC as collateral to borrow more USDC. This is done as we are aware that whales often do leveraged stablecoin farming, to receive more incentives.
Leveraged stablecoin farming is the act of supplying and borrowing the same asset, typically stablecoins, in a continuous loop. This restriction is thus put in place to ensure that our incentives are spread across a larger Cronos user base, benefiting all users who are using the Tectonic platform.
Liquidations happen when your collateral falls below the required LTV ratio. Liquidations are necessary to keep the protocol healthy and prevent bad debts. You can check how close you are to liquidation via the lava bar on the dashboard. More details here.
tTokens are the receipt token received for supplying the corresponding asset. It entitles users to withdraw their supplied asset and the tToken-to-asset exchange rate will continuously increase to reflect interests earned by the lender.
Currently, we are using our own internal oracles as documented here. The oracles update twice hourly or whenever there’s a 1% change in price. We will be shifting to decentralized oracles like Chainlink and Band once they are live and supported on Cronos.
$TONIC is the governance token of the Tectonic protocol. once our Community Insurance Module is live, you can stake $TONIC to receive a portion of fees collected and in return, your $TONIC will be used as insurance in case of short-fall events.
In addition, once our Community Insurance Module is live, you can stake $TONIC to receive a portion of fees collected and in return, the $TONIC contributed will be used to secure the protocol if a shortfall event unfortunately occurs.
You can buy and sell $TONIC on VVS Finance.
Tectonic protocol is a fork of Compound protocol. Compound protocol was audited by Trail of Bits and Open Zeppelin. Tectonic's smart contracts were audited by Particle B’s security team as well as external auditing firm Slowmist.
The Tectonic source code and security audit Report is being finalized and will be published when it is available.
Absolutely. We are having conversations with several protocols to collaborate and add their native tokens to the markets so that TONIC could potentially reach out to more users in different ecosystems while giving Tectonians more options to lend and borrow.
One hundred percent! First of all, thank you all for your on-going support. We know that marketing is one of the key factors leading to the success of our protocol. While updates were rather infrequent previously, the team was busy building the past few months in order to bring more innovation to the protocol and to firm up the roadmap. We hear the community and will be sharing a lot more contents on different socials relating to product updates, community events, partnership and education. So stay tuned to our updates!
From our observations in the DeFi space, community governance is not necessarily a silver bullet that guarantees to fuel the protocol's growth. Opening up governance prematurely comes with certain burdens that may cripple the protocol. Our team has put serious thought into this and has decided to prioritise product and tokenomics development so that we can strengthen the foundation of this project.
Almost 80% of investors have just focused on the price of the token in the short term instead of understanding the real value of the project. Can you tell us the motivations? How do you plan to carry on this project especially with the bear season? What is the benefits for investors to hold in the long term?
Thanks for the great question. We have an amazing team from various expertise to ensure that Tectonic can keep improving in the best state while staying competitive based on evolving market needs. This gives us confidence to continue building the best and sustainable product in the upcoming future, especially in this bear market. To reward our long term HODLers, Maturity Lock Vaults will be the best case scenario as the earned reward amount will increase exponentially with the locked period. The longer the xTONIC is locked, the higher the APY, the more the rewards. Last but not least, kudos to all the diamond hands. Your support means everything to us!
The ambition to go multi chain is certainly not off the table. However, we want to focus on establishing ourselves firmly as the leader in Cronos first before branching out to other chains as it comes with various risks that may affect the protocol in the long term.
Currently, we do not have any plans to burn TONIC supplies because the benefits of a one-off Token Burning is limited, as it usually only helps to generate a short-lived price pump. Our team designs our tokenomics carefully and would prefer a more market-driven token monetary policy rather than impromptu intervention.
This is a good point. We are always looking for ways to improve transparency and opportunities to demonstrate that we can be trusted as a project. Thus, currently we are exploring the possibility of open sourcing our code, within the confines of maintaining anonymity.
Our product aims to design for non-crypto-native into our ecosystem. Within the Tonic team, we constantly seek to improve our ways of doing the right thing. For every development which has been launched, the team will do a retrospective to reflect how each iteration of product development can be done better. While our team is focusing on launching more user education in different channels such as Youtube and more articles. Stay tuned! So fellows, feel free to provide your comment anytime to improve our product together, we’re all ears!
Definitely. The success of Tectonic is driven by your engagement. Your input and suggestions are invaluable to us when defining new features and updates. So head over to feedback to let us know your ideas. Over time, we plan to let community members decide certain parameters. We believe that progressive decentralisation is the best way for the protocol to grow.
Unfortunately, we do not have plans to list TONIC on another exchange at the moment because we want to focus on users that are loyal to the Cronos ecosystem while we are arming ourselves with competitive features and great UI/UX. In the meantime, we will expand our footprints in the crypto space through marketing and partnership.
Of course we do! Words couldn’t express how much we love you guys. Without Tectonians, this project will never be successful so basically you guys are the centre of the universe. In terms of project positioning, we are incubated by CronosLab and we are sitting in one of the top chains, along with a couple industry leading projects. We are all going to grow together along with cronos chain! So we are not alone! WAGMI!