Tectonic is a decentralised non-custodial money market protocol that provides users with access to instant loans and passive yield.
We are an over-collateralised lending platform, as such you first need to supply an asset and enable it to be used as collateral. Thereafter, select the asset you want to borrow and click "Borrow"! Do monitor your LTV ratio to avoid being liquidated!
We have disabled the supplying and borrowing of the same asset on this platform. This means that if you have supplied asset A, you will not be able to use this asset as collateral to borrow more of asset A.
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 position reaches the Liquidation Threshold. Liquidations are necessary to keep the protocol healthy and mitigate bad debt. You can check how close you are to liquidation via the lava bar on the dashboard.
tTokens are the receipt token you will receive for supplying an asset. They represent your deposit and is minted upon deposit and burned when you redeem your asset.For example, if you supplied USDC, you will receive tUSDC in return. The amount of tTokens received depends on the tToken-to-asset exchange rate. This exchange rate is expected to continuously increase to reflect the increasing interest 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 continue to explore ways to integrate external decentralised oracles like Pyth and Band in order to ensure our oracles remain robust.
There are several ways you can earn $TONIC:
Currently, you can buy and sell $TONIC on VVS Finance or on Crypto.com.
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 Cronos Labs’s security team as well as external auditing firms.