Supply Cap

Introduction to Supply Cap

In Tectonic, securing users’ assets is always our top priority. Hence, we have deployed a supply cap to limit supply to selected markets with regard to the available on-chain liquidity of the underlying asset. When the supply of the market is equal or larger than the configured supply limit, users will not be able to add additional supply to the market. However, interest will continue to accrue to the current suppliers.

For detailed information on the supply cap parameters, please refer to the market parameter table.

Here are two scenarios regarding the supply cap implementation:

Scenario A: Total supply has hit the supply cap

When the total supply > supply cap and supply cap > 0, all supply buttons for that market will be disabled and the supply modal cannot be opened. There will also be an error message to inform you with such a condition: “You are unable to deposit your tokens as the maximum amount that can be supplied to this market has been reached.”

Scenario B: Total supply has not hit the supply cap, but your input amount will exceed supply cap

When your input supply amount > supply cap and supply cap > 0, the supply button in the modal will be disabled and you can no longer supply tokens into that market. There will also be an error message to inform you with such a condition: “You are unable to deposit your tokens as the maximum amount that can be supplied to this market has been reached.” Alternatively, you may choose to lower your supply amount so that the total supply amount will not exceed the supply cap.