Tectonic is a one-stop shop for DeFi that puts your capital to the most efficient use. It pioneers the use of accounting ratios to monitor & restore the balance of the system.
Tectonic is launching with a single-sided AMM. Additional functions including lending and stablecoin minting will be added in the near future. Stay tuned for updates by following us on Twitter, Telegram, or Discord.
Existing DeFi Protocols lock up capital for just one purpose such as lending or exchange, meaning capital is heavily underutilized. In our view, this kind of capital inefficiency is a major impediment, as assets only used for one purpose are less productive, and thus have less earning potential for the asset owner.
Tectonic avoids these problems while maximizing capital efficiency with our all-in-one protocol. We put the same assets to work within multiple functions, simultaneously. High capital utilization across multiple functions generates more fees, providing greater incentives for liquidity providers to stake. Greater liquidity allows the protocol to lower fees, attracting ever-more traders and borrowers. Ultimately the protocol is inherently designed to support a positive feedback loop, creating a fly-wheel effect.
From a technical standpoint, Tectonic is a pioneer in applying balance sheets and accounting ratios to DeFi. Tectonic monitors the health of the protocol and dynamically adjusts the incentives offered to traders and borrowers with the goal of maintaining protocol liquidity and solvency.
For end users, Tectonic envisions a comprehensive DeFi solution, starting with token swapping and expanding to lending and stablecoin minting. The ultimate goal is to satisfy most if not all of a user’s daily financial needs all within Tectonic. With capital efficiency maximized, liquidity providers are encouraged to provide high levels of liquidity and enjoy high total returns with no risk of impermanent loss. High capital efficiency allows the protocol to offer traders and borrowers remarkably low fees, giving them no reason to go elsewhere.
Tectonic’s smart contracts and DeFi operating model are being audited by SlowMist and PeckShield. We will provide the links to the audit reports upon the official launch.
A large portion of the underlying reserve will be used for different purposes, meaning that the reserve could be insufficient if all liquidity providers withdraw their funds within a short timeframe, however unlikely this scenario is.
There are inherent risks associated with using a decentralized virtual platform and participating in virtual asset transactions.
Risks include but are not limited to:
This list of potential risks is not exhaustive and is not intended to capture the extent of all possible risks. In the event of any of the above occurring, you may lose your virtual assets entirely. Participants should consider all of the above and assess the nature of, and their own appetite for relevant risks independently and consult their advisers before making any decisions in participating in the Protocol. USE AT YOUR OWN RISK.