Tectonic is a cross-chain money market designed to facilitate passive yield generation and provide instant-backed loan access. Investors can deposit their cryptocurrency assets into Tectonic to earn a dynamic yield without any lockup periods, while borrowers have the option to obtain liquidity by using their crypto assets as collateral. Modeled after Compound, Tectonic seeks to offer seamless money market functionalities that cater to various user needs: - Investors with surplus crypto capital can earn additional interest on their idle assets without the need for active management. - Traders have the ability to borrow crypto assets and take advantage of short-term or long-term financial opportunities, such as staking or yield farming. - Users can access cryptocurrencies to participate in IDOs without having to liquidate their underlying collateral. Following its mainnet launch in December 2021 on the Cronos chain, Tectonic intends to expand the range of supported tokens by concentrating on assets from EVM-compatible ecosystems. In the future, the project is committed to launching leverage yield farming and a governance module for its TONIC token.

Tectonic was developed under the guidance of Particle B, a startup accelerator focused on nurturing projects built on Cronos and the Crypto.org chain. The initiative was spearheaded by Gary Or, an entrepreneur, hacker, and product designer with a strong passion for blockchain technology. With his background as the former CTO of Crypto.com, Or brings more than a decade of experience in full-stack engineering, managing the complete development lifecycle of cryptocurrency products in payment, trading, and financial services.

Tectonic comprises three fundamental modules within its protocol: an interest rate mechanism, a liquidation module, and a community insurance module. The interest rate mechanism adopts a variable interest rate model similar to that used by money market protocols like Compound. Interest rates are determined algorithmically based on the utilization rate and supply-demand dynamics in the lending pools. At the inception of a lending pool, the Tectonic team establishes interest rates and other parameters, with rates divided into two phases. Before reaching a high utilization threshold, interest rates follow a linear trajectory. Beyond this point, rates are adjusted according to an upward-sloping curve to account for heightened liquidity demand. The liquidation module manages the liquidation of undercollateralized borrowing positions, offering a liquidation discount to incentivize liquidators to maintain system stability. Initially, until a specified number of liquidators is reached, the core team will also function as a liquidator. Subsequently, a governance vote will determine whether the core team should be removed from its liquidator role. Scheduled for activation in the first quarter of 2022, the community insurance module aims to serve as a mitigation tool in the event of a "shortfall event." Tectonic defines such an event as any occurrence that could negatively impact the protocol’s health, including smart contract risk, liquidation risk, or oracle failure risk. Users can stake their TONIC to receive stTONIC in return, thereby helping safeguard the protocol. However, during a shortfall event, their stake may be reduced as funds are used to mitigate potential damages. Stakers are also provided the option to lock their positions for a minimum of 90 days, earning a share of the protocol’s swap fees in the process. For further details, please refer to Eulerpool.

Tectonic is driven by TONIC, its native governance and utility token. Holders of TONIC can stake the token to safeguard the protocol via its community insurance module and utilize it to vote on governance proposals once Tectonic has transitioned to a DAO model. Token holders have the ability to submit and vote on proposals or delegate votes for proposals following the governance guidelines. The total supply of TONIC is 500 trillion, with the following token distribution: * Community (50.9%): Participation incentives and liquidity mining/staking rewards * Team (23%): Allocated according to a 48-month vesting schedule * Ecosystem Reserve (13%): Designated for ecosystem partner collaboration, advisors, and other community initiatives in the future * Network Security (13%): Dedicated to security audits, protocol operations, infrastructure upgrades, protocol liquidity, listing requirements, and more

Tectonic is developed on Cronos, an Ethereum-compatible blockchain designed to operate alongside the Crypto.org blockchain, similar to the relationship between Binance Chain and Binance Smart Chain. Cronos is constructed using the Cosmos SDK and employs a proof-of-authority (PoA) consensus mechanism. In addition, it supports the Inter Blockchain Communications (IBC) protocol of Cosmos, enabling connectivity with the Cosmos ecosystem of decentralized applications (DApps).

Despite Tectonic's robust use case and its innovative selection of a settlement layer, the excessively high token supply will impede it from reaching one cent. However, should the cryptocurrency market rebound from its correction at the end of 2021, TONIC could potentially revisit its all-time high of $0.000004029.

TONIC is available on the Crypto.com Exchange and Hotbit. For those interested in learning how to begin purchasing cryptocurrencies, you can find more information in our guide.