Tectonic, also known as TONIC, is a cross-chain money market protocol that strives to provide a platform for passive yield generation and instant-backed loans. Users may deposit their crypto assets into Tectonic for potential dynamic yield without lockup periods. At the same time, borrowers may utilize liquidity by supplying their crypto assets as collateral. Tectonic's protocol design and architecture are modeled after a proven and audited protocol. It is complemented with an incentive program powered by TONIC, the native token of Tectonic protocol. Tectonic seeks to provide seamless money market functionalities, enabling multiple use cases for its users.

Tectonic operates through three core modules within the protocol: an interest rate mechanism, a liquidation module, and a community insurance module. The interest rate mechanism adopts a variable interest rate model similar to that of money market protocols. Interest rates are algorithmically determined based on the utilization rate and supply and demand in the lending pools. The liquidation module liquidates undercollateralized borrowing positions and offers a liquidation discount to incentivize system stability. The community insurance module, which went live in the first quarter of 2022, acts as a mitigation tool in case of a shortfall event that can harm the protocol’s health.

Tectonic seeks to address several use cases for its users. Investors with excess crypto capital can generate additional returns on their idle assets without actively managing them. Traders may borrow crypto assets to capitalize on short-term or long-term financial opportunities. Users can also utilize cryptocurrencies for multiple purposes, such as participating in Initial DEX Offerings (IDOs), without having to liquidate their original assets. Tectonic has launched leverage yield farming and a governance module for its TONIC token.

Tectonic was incubated by Particle B, a startup accelerator dedicated to incubating projects built on Cronos and the Crypto.org chain. It was founded by Gary Or, a former CTO of Crypto.com, who has over ten years of full-stack engineering experience. Tectonic launched its mainnet in December 2021 on the Cronos chain and has increased the number of supported tokens by focusing on assets from Ethereum Virtual Machine (EVM)-compatible ecosystems. Tectonic is powered by TONIC, its native governance and utility token, which holders can stake to secure the protocol and use to vote on governance proposals.