In this article, you can find everything about Tonic Coin like how to buy, how to earn with it, where to buy, etc.
Decentralized Finance (DeFi) has soared in popularity over the past few years. And securing itself as an integral part of the crypto world. Tectonic is one of the latest platforms to enter space. And it has its work cut out to compete with industry leaders.
There is more than $200bn in total value locked (TVL) into all DeFi platforms, according to DeFi Llama. While Tectonic only makes up $340m of that, the TVL in the platform has been on a gradual rise since its late December 2021 launch. Can it realize a similar trend with its TONIC token?
What is TONIC COIN?
TONIC is Tectonic’s protocol token with two key use cases. The first is governance and the second one is staking into the Community Insurance Pool to secure the protocol and earn more rewards.
What Is The Best Way To Purchase Tectonic Crypto Or TONIC?
TONIC is a cryptocurrency that can be purchased on Crypto.com, Pancakeswap, Uniswap, and Gate.io. It is necessary that you visit your favorite cryptocurrency exchange and follow the steps outlined below to purchase TONIC.
Visiting an exchange and linking your wallet address with the exchange of your choice is the first step in purchasing a coin.
Purchase Ethereum, Binance smart currency, or Dogecoin to ensure that your TONIC can be exchanged for one of these cryptocurrencies in the future.
Purchase the TONIC after making a payment in one of the cryptocurrencies listed above.
What Is the Mechanism via Which Tectonic Works?
User-deposited funds serve as liquidity for borrowers. who may borrow at varying interest rates based on the funds they have deposited. Tectonic’s smart contracts change these fees based on the utilization rates of each market.
The Pricing History of Tonic
TONIC is one of the more recent cryptocurrencies to enter the market. And it has started on December 23, 2021, at a price of $0.000004. (four ten-thousandths of a cent). This was the day after Tectonic’s main net went online on the Cronos blockchain, which was a milestone for the company. After a short period, the token was listed on the VVS Finance exchange. Additionally, the exchange sponsored a promotion in which VVS stakeholders were rewarded with TONIC.
In an unusual move, the Tectonic team informed their users that the token’s price is expected to be erratic at the outset. And they advised them to hold off on purchasing the token. The team’s prediction proved to be correct, as the token’s value plummeted considerably in the following days. By the 29th of December, TONIC had plummeted to $0.0000009 per share.
It experienced a significant increase at the beginning of 2022, reaching a high of $0.000001. This occurred after Tectonic surpassed all other loan platforms on Cronos in terms of total supply, surpassing $500 million. On the 4th of January, the coin was also listed on the Crypto.com stock exchange.
What Makes Tectonics So Distinctive (Unique)?
An interest rate mechanism, a liquidation module, and a community insurance module are the three core modules that make up the protocol Tectonic, which is a distributed ledger technology.
The interest rate mechanism uses a variable interest rate model that is similar to that of money market protocols such as Compound to calculate interest rates. Interest rates are determined by an algorithm based on the utilization rate, as well as supply and demand in the lending pools, among other factors.
Interest Rates and Other Parameters:-
Before starting a lending pool, the Tectonic team determines interest rates and other parameters, with interest rates divided into two stages. In the short term, before a certain level of high utilization is reached, interest rates follow a straight line. Following that, rates are set following an upward-sloping curve to reflect the growing demand for liquidity.
The liquidation module liquidates its undercollateralized borrowing position and provides a liquidation discount to liquidators to incentivize them to keep the system running smoothly. The core team will serve as one of the liquidators until a predetermined number of liquidators has been reached.
A governance vote will be held later on to determine whether or not the core team will be removed from its liquidator position.
Initially scheduled to go live in the first quarter of 2022, the community insurance module is intended to serve as a risk mitigation tool in the event of a so-called shortfall event. This is defined by Tectonic as an event that has the potential to harm the protocol’s health. Such as smart contract risk, liquidation risk, or oracle failure risk, among other possibilities.
In exchange for stTONIC, users can stake their TONIC and receive stTONIC to keep the protocol safe. Their stake may be reduced because the funds will be used to mitigate the damage that has been caused. Aside from that, stockers will be able to lock in their positions for a minimum of 90 days. And earn a share of the swap fees collected by the protocol.
The Tectonic Crypto Lending Protocol:
The tectonic (TONIC) cryptocurrency first appeared on the market in late December 2017. It has lost value as the cryptocurrency markets have been under bearish pressure, plunging by 74.7 percent since its inception on February 21st, according to CoinMarketCap.
This protocol, which runs on the Cronos blockchain, is a decentralized finance (DeFi) system, to facilitate lending. And borrowing over several blockchains. When it comes to enabling interoperability between the Ethereum and Cosmos blockchain ecosystems. And Cronos makes use of Inter Blockchain Communication (IBC).
When it comes to cryptocurrency, what is the TONIC coin? And what should you consider making an investment in it in anticipation of the price rising?
What the Tectonic project claims to do is enable deposits by crypto holders, which can be tapped by borrowers. In this arrangement, the project says, the depositor can earn interest. While the borrower can use assets to engage in short-to-long term activities including staking.
The Bottom Truth Is That
Tectonic is another DeFi lending mechanism that utilizes a native token for governance purposes. In the following months, it will become obvious how Tectonic will compete in an industry that may already be crowded.
Rather than requiring depositors to actively manage their cryptocurrency holdings. And the protocol encourages them to do so by offering interest income. The TONIC token has remained volatile, and forecasting its price has proven to be extremely difficult.