In order to assess the legitimacy of a cryptocurrency investment platform, it is vitally important to conduct thorough investigations of their background, regulatory compliance, reviews and ratings, technology, security measures, financial strength, pros and cons as well as risks and rewards.
Tectonic is a decentralized cross-chain money market system that enables users to generate passive income or access funds instantly, using game theory mechanisms and crypto economic incentives for instant depositor availability for instant borrowing.
Tectonic is a cross-chain money market system
Tectonic is a cross-chain money market system that enables users to earn passive income or borrow against assets instantly. Launched its mainnet on 23 December 2021, its game-theoretic mechanism design and crypto-economic incentives make sure deposited funds remain available for borrowing, while interest rates adjust according to each market’s utilization rate.
Traders can leverage a liquidity pool to participate in IDOs without liquidating collateralized assets, including TONIC, CRO, WETH, WBTC, USDC and USDT cryptocurrencies. The platform supports many other digital coins like ZEC.
Liquidity providers can leverage the platform by adding their crypto assets as a fungible asset pool. Once added, they can withdraw them at any time – in exchange, they’ll receive TONIC tokens as payment.
Tectonic protocol also offers users a lending module to lend out tokens as collateral against loans that they can repay at any time.
Tectonic crypto has implemented over-collateralisation as a way of making its borrowing process more efficient, meaning borrowers must deposit more cryptocurrency than intended as collateral, thus preventing any possible runaway of funds leased out on lease agreements. Furthermore, liquidation discounts may apply when collateral values decrease over time.
Tectonic crypto stands apart from traditional banks and lenders by offering arbitrageurs an incentive, thus decreasing risk of loan default. Furthermore, it also features a liquidity pool to increase availability of cryptocurrency assets.
Tectonic is a DeFi system powered by Cronos and its native token, TONIC. At launch, TONIC had a total supply of 500 trillion; 23% went directly to the team while another 23% was allocated as ecosystem reserve fund contributions and another 13% went for network maintenance costs and protection. Furthermore, wallet snapshot participants in January received an airdrop of TONIC tokens that they could stake according to their preference.
It is a decentralized platform
Tectonic is a decentralized platform that enables users to securely deposit and borrow cryptocurrency assets to generate passive income streams. As an alternative to traditional banking services, it also gives liquidity borrowers instantaneous access to funds without the need to sell original assets first.
Tectonic protocol stands apart from most money market protocols in that it gives users more control of their finances by offering two modes of participation; either as a liquidity supplier or borrower. Liquidity suppliers supply excess liquidity into the market in exchange for passive income generation while liquidity borrowers take out loans to access liquidity and generate interest income.
Tectonic offers liquidity mining and TONIC staking as well, which allow holders of its tokens to earn rewards in return. Furthermore, TONIC can be staked into the Community Insurance Pool to act as an insurance policy against shortfall events.
TONIC holders can help ensure the Tectonic network remains secure by voting on proposals that affect its protocol or by staking their TONICs to help secure the network and earn rewards.
TONIC holders can expect a dividend from staking, which will depend on supply and demand of TONIC tokens in the market, to grow over time.
In addition to its staking function, Tectonic also features an airdrop program which distributes TONIC tokens directly to users – an effective marketing tactic which draws traffic and awareness to an emerging cryptocurrency.
Tectonic is one of the DeFi platforms gaining in popularity recently. Although still fairly new to the industry, if Tectonic can continue raising its profile through awareness campaigns it could differentiate itself from competitors and stand out.
It uses over-collateralisation
Over-collateralisation is a hallmark of Tectonic Crypto, designed to ensure borrowers don’t run away with funds they borrowed. Furthermore, to access liquidity from this platform, borrowers must fulfill certain criteria.
Users who store assets on the Tectonic crypto network can make passive income by using them as collateral against loans they take out using TONIC tokens as a collateral loan collateralization mechanism. TONIC tokens also serve as governance tools on this platform and grant users access to its liquidity pool.
On the Tectonic crypto market, TONIC is currently trading at approximately $20 and expected to increase over time – however this cannot be guaranteed as many factors could impede its value.
TONIC is built upon compound (COMP), a decentralised finance (DeFi) lending protocol. This allows borrowers to gain interest by borrowing funds in the Tectonic pool and paying an annual percentage towards their deposit.
Tectonic crypto project prioritizes community control over governance of its platform. Over time, all holders of TONIC will be given the ability to vote on proposals to alter parameters of Tectonic crypto protocol.
These proposed changes could involve changes to token distribution, collateralization ratio, and interest rate structure. To establish these parameters, the Tectonic team held discussions with various stakeholders and members of its crypto community.
As the Tectonic crypto platform is still being built, there are risks involved with its development. Although plans exist for dispersing an insurance fund and liquidity mechanism, an unexpected shortfall event could occur and cause irreparable harm to both its stability and to those holding TONIC tokens.
It is a lending platform
Tectonic is a cross-chain money market system that enables users to earn passive income as either liquidity suppliers or borrowers, respectively. Liquidity suppliers generate passive income by contributing their liquidity to the market, while borrowers gain liquidity by providing excess collateral as part of their loan agreement.
Investors and traders alike can use this approach to generate additional interest on idle crypto capital without actively managing it themselves. Borrowing certain cryptocurrencies to fund short-term trading strategies or exploit yield-boosting opportunities (like farming) may also prove profitable.
The Tectonic crypto protocol is designed to create a decentralized money market platform, where participants can act either as liquidity providers or borrowers and be rewarded with TONIC, the native token of this protocol.
Tectonic platform comprises three core modules, an interest rate mechanism, liquidation module and community insurance pool. Together these work to ensure its security while offering users an attractive return on their investments.
Traditional banks were once the go-to solution for loan seekers, yet these establishments have restrictive regulations and high interest rates, making them difficult for individuals from developing nations to access loans.
Due to this trend, more and more individuals are seeking alternative lending platforms with faster loans at more reasonable rates – one such platform being Tectonic. This promising alternative financial institution.
Tectonic is a cross-chain platform that enables borrowers to secure cryptocurrency loans by offering collateral as security. Borrowers may borrow up to 75% of the value of their collateral depending on its calculation by the collateral factor corresponding to each cryptocurrency supported.
Tectonic DeFi is the second-largest DeFi protocol on Cronos blockchain with $120m locked up, supporting various cryptocurrencies for lending and borrowing including top-priority EVM-compatible assets. Furthermore, it features a staking feature which rewards holders with tTokens in exchange for contributing to its pool.
It is a cryptocurrency
Tectonic Crypto is an open-source, decentralized platform with a cross-chain money market system, offering users an opportunity to earn passive income or borrow liquidity quickly while token holders have the chance to stake their coins for extra rewards.
TONIC stakers who participate in the staking process will be rewarded with xTONIC, a cryptocurrency that rewards them for their contributions to Tectonic. As more TONIC tokens are staked, its exchange rate will increase over time.
TONIC is a decentralised cryptocurrency available for purchase on multiple marketplaces. On HotBit it can be acquired using USDT while VVS Finance accepts either WCRO tokens (VVS tokens).
Tectonic is an uncentralised finance (DeFi) protocol powered by Cronos that facilitates decentralized finance (DeFi). Borrowers can borrow and lenders lend liquidity which will then be aggregated via smart contracts on Tectonic’s blockchain for over-collateralisation purposes.
Security measures have been put in place to ensure the authenticity of a liquidity pool, such as safeguarding tokens from theft or providing contributors access to their contributions.
TONIC token holders may use them to vote on proposals that affect the Tectonic network, such as changes to its protocol or Community Insurance Pool.
TONIC tokens have a total supply of 500 trillion. Although this seems like a substantial number, remember that it has been distributed evenly: 23% are allocated to Tectonic team and 50% go toward community awards and incentives.
TONIC requires patience when buying, but is a wise investment option. Although its price has fluctuated since launch, experts expect its value to increase over time.
