Tectonic, a non-custodial algorithmic money market platform based on decentralized financing (DeFi) is a revolutionary concept in the world of Lending and Borrowing. It allows users to easily engage in crypto-based lending activities using the Tectonic Platform.
On this platform, anyone with a crypto asset can become a Lender, to earn compound interest on their holding or can become a borrower to settle the urgent needs of liquidity by taking the help of their crypto assets.
The protocol introduces xTONIC, its native token, powering an enticing incentive program. With a secure and seamless design, Tectonic empowers users to access diverse cryptocurrencies for various purposes without liquidating their assets, fostering a dynamic ecosystem for decentralized financial functionalities.
Supplying Assets to Tectonic:-
The Tectonic Platform allows users to supply their crypto assets onto the platform as liquidity providers and then this platform aggregates the supply from each user into a pool of assets controlled by smart contracts, making it a fungible resource for the protocol, while allowing users to withdraw their supply at any time.
In return for their supply, a liquidity provider will receive a “tToken” for ex tETH, tUSDC, etc. which will be used as proof of their contribution and which entitles them to redeem their supply in the future. The value of tToken will increase which indicates the interest on the deposited crypto assets.
Borrowing Assets From Tectonic:-
The member of the Tectonic platform who has contributed liquidity to the platform can borrow supported cryptocurrencies from Tectonic’s asset pools to be used for any purpose. The borrowing depends on the assets supplied by a member which means the supplied assets will act as the collateral for the loan taken.
The Tectonic platform has a collateral factor of 75% which means users can borrow upto 75% of their supplied assets. The point to be noted here is that the Collateral Factor for each asset is set based on several inherent characteristics of the asset, such as availability in the reserve and the asset’s liquidity in the market. These ratios and their parameters are currently determined by the Tectonic team, however as the protocol matures and the necessary processes are in place, the governance of these parameters will be opened to the community via Tectonic’s governance process.
The step-by-step process to supply Crypto assets in the Tectonic Platform is as follows:-
Go to the Tectonic “Markets” page directly via app.tectonic.finance/markets or go to the Tectonic. finance website and click “Enter App”.
Click the yellow “Connect Wallet” button and make sure you are connected to the Cronos Network. The button can be found on the top right-hand corner of the page.
On the “Markets” page, select the asset that you want to supply. Currently, you can choose to supply assets either within the "Main Pool" or "LCRO Pool" (isolated pool).
Once you have selected the asset that you want to supply (for example USDC), you will be directed to the individual asset markets page.
Click on the “Supply” button. After which, indicate the amount you want to supply and click “Supply”.
Confirm your transaction on your wallet.
If your transaction is successful, you will receive a pop-up notification and hence your supply to the Tectonic Platform is completed and will start receiving interest on your deposits.
Firstly, you need to supply an asset on the Tectonic crypto platform as mentioned above.
Once supplied, you will need to enable the asset for use as collateral. You can do this either in the Dashboard page or within the individual asset markets page (for example, the individual asset markets page for USDC can be found here).
Then, head to the Markets page and select the asset that you intend to borrow. You will be taken to that asset's individual markets page
Click on the “Borrow” button and indicate the amount you intend to borrow (Example below is for TONIC)
Confirm your transaction in your wallet.
A pop-up will appear to indicate a successful transaction.
Upon successful completion, you can then view your supply and borrow balances within the Dashboard Page
Repaying Loan taken:- A member can repay their loan anytime they want on the platform whether fully or partially. The platform also provides a feature to pay their loan with the help of their collateral in a simple click as mentioned on the platform.
Collateral Swapping:- The Tectonic Crypto Platform provides a feature of Swapping out their collateral with any other token in very easy steps, which makes this platform a good site to visit for members for their basic functions.
The Tectonic platform is governed by the $TONIC Token which has a total supply of (500 Trillion) which can be earned by participating in the Tectonic protocol activities. Tectonic’s liquidity incentive program will be done in the form of a distribution of $TONIC to suppliers and borrowers in Tectonic. The proportion of $TONIC token distribution between suppliers and borrowers, as well as among supported tokens will be determined by the Tectonic team by taking into account the supply & demand of each asset.
The Tectonic Platform’s staking feature allows the $TONIC holders to deposit their tokens into the TONIC Staking module in return for yield rewards, which further drives utility for the TONIC token and seeks to align incentives with the long-term believers of our protocol and benefits token holders. A point to be noted here is that the staking is a standalone feature and does not combine with the Tectonic’s money market of lending and borrowing.
$TONIC is the main token for the Tectonic protocol, while the tToken is a token created by the Tectonic protocol for the users supplying assets to the protocol. tTokens entitle the owner to redeem the supplied asset in an exchange rate that reflects the accrued interest of the supplied asset over the holding period.
In conclusion, Tectonic emerges as a groundbreaking force in the decentralized finance realm, redefining lending and borrowing through its non-custodial algorithmic money market platform. The protocol's core tenets empower users as lenders and borrowers, facilitating seamless engagement with crypto assets. Introducing the native $TONIC token, Tectonic employs an enticing incentive program, rewarding participants in proportion to their contributions. Supplying assets to the platform yields tTokens, serving as proof of contribution and representing accrued interest on deposited assets.
Borrowing is collateralized, with a 75% limit determined by the assets supplied. The governance process, evolving over time, ensures community participation. With a user-friendly interface, Tectonic's step-by-step guides simplify asset supply and borrowing processes. The $TONIC token, governing the protocol, extends utility through staking, aligning incentives for long-term believers. In essence, Tectonic orchestrates a paradigm shift, offering a secure, seamless, and dynamic ecosystem for diversified decentralized financial functionalities.
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