What is Tectonic?

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.

What features are available?

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.

What sets Tectonic apart?

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.

Capital Efficiency

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.

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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.

Has Tectonic been audited?

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.

What are the risks associated with the protocol?

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:

  • Partial or total loss of virtual assets;
  • Collapse in liquidity with respect to virtual assets; changes in compatibility of a virtual asset with the Protocol, changes in the smart contracts;
  • Regulatory uncertainty and government action against virtual assets;
  • Extreme volatility;
  • Possibility of market misconduct by participants including for example market manipulation, trading on the basis of non-public information, and front running;
  • Delays in or complete failure of virtual asset transactions being confirmed;
  • counterparty risk;
  • Faults, defects, hacks, exploits, errors or unforeseen circumstances occurring in respect of the platform or the technologies that the platform depends on;
  • Loss of private keys; and
  • Attacks on the platform or the technologies that the platform depends on including for example distributed denial of service, sybil attacks, phishing, social engineering, hacking, smurfing, malware, double spending, majority-mining, consensus-based or other mining attacks, misinformation campaigns, forks, and spoofing.

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.