Tectonic is a cross-chain money market protocol that allows users to earn passive yield and access instant-backed loans with their crypto assets. Tectonic aims to provide users with seamless and secure lending and borrowing functionalities across different blockchains.
Here, we will review the features, benefits, and risks of Tectonic crypto, as well as its native token TONIC, and provide price analysis .
What is Tectonic?
Tectonic is a decentralized, non-custodial, and algorithmic money market protocol that runs on the Cronos blockchain, a scalable and interoperable EVM-compatible network powered by Crypto.com. Tectonic was launched in December 2021 and has since attracted over $100 million in total value locked (TVL) on its platform.
Tectonic crypto enables users to deposit their crypto assets into the protocol and earn dynamic interest rates based on the market demand and supply. Users can also borrow liquidity from the protocol by supplying their crypto assets as collateral. The interest rates for borrowing are also variable and depend on the utilization rate of each market.
Tectonic crypto is modeled after Compound, one of the leading money market protocols on Ethereum, but with some key advantages:
- Cross-chain compatibility: Tectonic leverages the Cronos bridge to allow users to access liquidity from other blockchains, such as Ethereum, Binance Smart Chain, Polygon, etc.
- Low fees and fast transactions: Tectonic benefits from the low gas fees and high throughput of the Cronos network, which enhances the user experience and efficiency of the protocol.
- Innovative features: Tectonic offers some unique features that differentiate it from other money market protocols, such as:
- Community Insurance Pool: A portion of the interest borrowers pay goes to an insurance fund that covers any losses in case of undercollateralized loans or liquidation failures. Users can stake their TONIC tokens into the pool and earn rewards for securing the protocol.
- Dynamic Yield Optimization: Tectonic uses an intelligent algorithm to optimize the yield for depositors by dynamically allocating funds across different markets and platforms based on risk-adjusted returns.
- Governance: Tectonic is governed by its community through its native token TONIC. TONIC holders can propose and vote on various parameters and upgrades of the protocol.
What is TONIC?
TONIC is the native token of the Tectonic crypto protocol. It has two prominent use cases:
- Governance: TONIC holders can participate in the protocol’s governance by proposing and voting on various proposals that affect the protocol’s parameters, features, and upgrades.
- Staking: TONIC holders can stake their tokens into the Community Insurance Pool and earn rewards for securing the protocol. Staking also increases their voting power in governance.
TONIC has a total supply of 500 trillion tokens, of which 110 trillion are currently in circulation. The token distribution is as follows:
- 30% for liquidity mining rewards
- 20% for team and advisors
- 15% for ecosystem fund
- 15% for strategic partners
- 10% for community fund
- 10% for reserve fund
Tectonic Crypto Price Analysis
Tectonic crypto is currently trading at $0.0000001763 with a 24h volume of $182,289.
In a 2D Time frame, the price is trying to break its horizontal S/R zone. After a successful breakout, A bounce is expected from here. On the other hand, it may fall from here.
Will Tectonic (TONIC) Ever Hit $0.01?
Tectonic crypto has a solid use case and a smart choice of underlying network, but its huge token supply makes it unlikely to reach one cent.
However, if the crypto market bounces back from its late 2021 slump, TONIC could test its all-time high of $0.000004029 again.
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