Tectonic
Crypto Overview
Overview
Tectonic is a decentralized non-custodial algorithmic money market protocol built on the Cronos blockchain. It functions as a lending and borrowing platform where users can supply assets to earn yields or borrow against their collateral.
Purpose and Utility
The TONIC token serves as the protocol's governance token, allowing holders to participate in decision-making regarding protocol parameters, risk management, and treasury allocation. It also incentivizes liquidity provision through rewards.
Business Model Analysis
The core business model revolves around lending and borrowing activities, which generate fees for the protocol. This model inherently involves interest-based lending, which is not compliant with Islamic finance principles when not done as an act of charity.
Platform Development and Adoption
The protocol maintains active development on the Cronos chain and has integrated with various DeFi protocols. However, the primary use case remains focused on interest-based lending and borrowing activities.
Token Distribution
The token distribution includes allocations for the ecosystem (50%), mining rewards (25%), team and advisors (15%), and strategic partners (10%). While this distribution is transparent, the token's primary utility supports an interest-based lending system.
Crypto Impact
To assign a comfort level investing in Tectonic from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Tectonic.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.