TONIC Tectonic Token launched On December 23rd

Lutfi

TONIC Tectonic Token launched On December 23rd
TONIC Tectonic Token launched On December 23rd

Rancakmedia.com – In this essay, we will share details regarding the Tectonic project and the TONIC token. TONIC Tectonic Token is a Tectonic (TONIC) digital asset.

Tectonic's decentralized non-custodial algorithmic money market protocol allows users to participate as liquidity providers or borrowers.

Liquidity is provided to the market by suppliers in exchange for passive income, while borrowers can borrow liquidity against excessive collateral.

Reference to protocol design and architecture in Tectonic Compound, verified and certified protocols. The Tectonic protocol's native token, $TONIC, supports a profitable incentive scheme.

Overall, the Tectonic protocol intends to provide users with secure and seamless cryptocurrency money market functionality, allowing many use cases to be realized by the system itself.

Assets supplied to the protocol by “HODLers,” who do not have to manage their assets, may generate additional interest income.

TONIC Tectonic Token Basics

In the event of the possibility of shorting or maximizing returns, traders may borrow certain cryptocurrencies to fund their short-term trading views (e.g., farming)

Users can gain access to other cryptocurrencies for different purposes (e.g., participating in ICOs, bonding), without having to sell the original assets

TONIC Tectonic Token Basics

Provision of Tectonic Assets

Tectonic allows users to supply as liquidity providers by supplying the platform with their cryptocurrency (assets).

The tectonic protocol combines the supply from each user into a pool of assets managed by smart contracts, making it a fungible resource for the protocol, while letting users withdraw their supply at any time.

Liquidity providers earn tTokens (e.g., tETH, tUSDC) in return for the assets they supply, allowing them to redeem those assets at a later date. Deposit interest rates, which are based on supply and demand for assets, determine how much a tToken is worth.

Borrowing Assets from Tectonic

By using the assets provided as collateral, users can borrow backed cryptocurrencies from Tectonic's asset pool to use for any purpose.

To determine the amount of assets that can be loaned against each asset pledged as collateral, a Collateral Factor (i.e. Loan to Collateral ratio) is established for each such asset.

Users can only borrow up to 75% of their collateralized assets if their Collateral Factor is set to 75% or higher (see chart below).

If the value of the collateralized asset decreases, or the value of the borrowed asset increases, a portion of the outstanding loan will be liquidated at the current market price minus some liquidation discount.

Assets and market conditions influence how much of the borrowed asset must be liquidated. Users can prevent a liquidation event from occurring, either by increasing the amount of collateral (i.e., providing additional assets) or by repaying a portion of their loan.

Interest on each loan will be compounded and can be paid back at any time. The Collateral Factor of each asset depends on various factors, including its availability in reserves and the market value of the asset.

The Tectonic team currently defines this ratio and its parameters, but as the protocol develops and the necessary protocols become available, the community will be able to set these parameters through Tectonic's governance process.

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Lutfi

Hi, let me introduce myself, Lutfi Hulasoh, I am a writer and techno blogger. I started creating a personal blog writing informative articles about the latest trends and developments in technology. My writing covers a wide range of topics, from mobile applications to artificial intelligence, and I can also provide easy-to-understand explanations to help readers understand complex concepts.