TONIC EXPLAINED
What Is Tectonic (TONIC)?
Tectonic (TONIC) is a decentralized, non-custodial coin market system that empowers users to participate as liquidity providers or borrowers. Liquidity suppliers contribute assets to the market to earn passive income, while borrowers leverage liquidity with adequate collateral.
What are the Working Principles of Tectonic?
According to the whitepaper, the design and architecture of the asset’s protocol are grounded in a proven and tested framework. The platform is complemented by a reward system fueled by its native token, TONIC. TONIC serves a dual purpose as both a governance token, allowing users a say in protocol decisions, and a staking mechanism into the community insurance pool, enhancing network security and providing additional rewards. As liquidity providers, users can deposit their cryptocurrencies onto the platform. The Tectonic protocol pools each user’s supply into a smart-contract-managed asset pool, creating a fungible resource for the protocol. Importantly, users retain the flexibility to withdraw their supply at any time.
How Secured and Protected is Tectonic?
The protocol aims to deliver a secure and seamless cryptocurrency money market experience, accommodating a variety of use cases.
What are the Functions and Uses of Tectonic?
Users contributing assets to the protocol can earn extra tokens without actively managing their holdings. Traders can borrow specific cryptocurrencies to fuel short-term trading or yield-maximizing strategies, while users gain access to different cryptocurrencies for various purposes without liquidating their original assets.
Liquidity providers receive a corresponding token in exchange for their contributed assets, representing a claim on the deposited amount. The token’s value appreciates in line with deposit interest rates, determined by the dynamic interplay of asset supply and demand. Users can also leverage these asset pools to borrow supported cryptocurrencies for diverse purposes, making the platform versatile and accommodating various financial strategies.
Where can I Trade Tectonic Coin?
Tectonic can be traded on various cryptocurrency exchanges. However, the most popular exchange for trading TONIC currently is Crypto.com.
