Thread by @___KMJC___

#Tectonians #TectonicFam 🚨

Is @TectonicFi worth a second look? Should you invest in $TONIC? Welcome to the deep dive where we discuss it all. Here’s everything you need to know and my honest thoughts on the project. Buckle up 😎😬

A thread 🧵 👇🏾:

1/ Lets start from the top down. What is @TectonicFi? It’s a cross chain algorithmic money market. Tectonic allows users to lend and borrow crypto assets. They are also supported by @cronos_labs (@cryptocom’s start up accelerator program). So you supply liquidity and earn…

2/…passive income. $TONIC is the governance token for the protocol. Aside from governance, $TONIC can be used to secure the protocol through the Community Insurance module. This module is designed to function as a line of defense for the protocol against any shortfall events.

3/ Users can stake or lock their $TONIC to receive a portion of the fees generated by the protocol. Like @MMFcrypto, @TectonicFi believes the #Cronos chain is a sleeping giant. They want to be at the money market center of what will be a huge ecosystem.

4/ In the whitepaper and medium articles, they described there protocol as being similar to Compound and AAVE on #Ethereum. To gauge how successful $TONIC can be, let’s look at Money Markets, why they are important, and what success has been seen in the past.

5/ Money markets help improve market efficiency by incentivizing those with extra cash on hand. Allowing them to earn yield while they #HODL. To see the potential of #Tectonic, we have to look at the market competition to see where the ceiling is and how much room we have to grow

6/ This protocol is a fork of Compound. The $COMP token’s market cap was at $1 billion before the UST/Luna collapse. Current MC for $TONIC is $14 mill. No doubt you see there’s a lot of room to grow here. Especially as #Cronos continues to solidify and grow its DeFi presence.

7/ Lets be modest and say $TONIC can hit a $100 mill MC. That’s only a 7x from where we are now. #Cro is about 7x away from ATH and we know it’s going beyond that. My point here is there is inherently more risk with #Tectonic. For the same return, why not just buy #cro and…

8/…take on less risk? Also, the total/circulating supply. Compound only has 10mill. Why does Tectonic have 500trill? Has a 250trill circulating supply for rewards. But it makes the token inflationary over time (unless there is a burn). See a picture of token distribution below.

9/ A LOT of potential here but we cant ignore risks. I know it a tough pill to swallow. That’s taking a short term view (will explain more). If you look at the long term outlook, this becomes MUCH more attractive. So why would I take the risk and buy $TONIC?

10/ Before the Luna/UST collapse $AAVE was at a $3 bill MC. Down the road, if #Tectonic continues to position itself correctly and we get into that billion dollar MC range that’s when we see HUGE good gains🚀 (100x+). I think they are well on their way but I also do feel that…

11/…anyone investing shouldn’t be looking to 100x there money in a short time frame from where we are now. I know what it sounds like but the reason I framed my feedback this way is because I see so many calling for a quick 100x and I want to bring a more realistic perspective.

12/ Is it a 100x over a longer time frame? Definitely possible. But a 100x from a $14mill MC is $1.4 bill. That may not happen for some time. If you got in at a $1mill MC then congrats a 100x is much easier for you. For newcomers, be prepared by having a longer time horizon.

13/ Why? Because this is a DeFi infrastructure play. And DeFi’s fundamental value took a hit due to the collapses, $100mill+ hacks, ponzis, etc. A lot of consumer/user trust lost. Users may be reluctant to use the platform until trust has been regained in crypto in general.

14/ Like any infra play it takes time. Because the space needs to grow, only grow with new users, that comes when there is more trust and bullish sentiment (or at least more than we have now). We are at the mercy of the macro environment so this will just take time to play out.

15/ But don’t get it twisted! This is an Infra play on a GROWING chain (#cronos aka sleeping giant). When this chain becomes an even bigger player, early projects like this one will benefit from its success and be well positioned to provide services to the influx of users.

16/ This means higher TVL over time and ultimately higher MC for $TONIC over time as governance of this protocol becomes more valuable.

17/ The project itself is virtually flawless. It has been running smoothly since launch. Tokenomics may need work and your time horizon may need to be longer BUT there is SO MUCH potential here over time (years not months). Money markets are a fundamental piece of DeFi and…

18/…#Cronos looks to be a DeFi juggernaut in the years to come. Tectonic is also backed by @cronos_labs which adds to their credibility and probability of being a successful protocol on #Cronos. Not to mention they have first movers advantage.

19/ Wont aggressively accumulate right now but will look to do so over time after the last shoe drops in the macro scene. After that leg down, will aim to establish a position. I will be keeping an eye on this project sharing thoughts, threads, and updates as they come out.

20/ I know I know. Tough love but I wanted to bring a more realistic informed perspective to the table. Many investors that I saw expect this to be a quick 100x but in these market conditions and with the state of DeFi I don’t want to be a “moon boy” and spread hopium.

21/ #Tectonians #TectonicFam

I hope this perspective provided REAL value and showed that there is still SO MUCH potential in the future for this project and its role on #Cronos in the years to come.

Found value? If so like & RT the first tweet below👇🏾:

https://twitter.com/___KMJC___/status/1541814900242219008?s=20&t=z_2rXNzmaRBVeTQe-d2TIQ