TENEO is a multi-layered yield generation protocol based on the trading of pegged-tokens. Users can swap tokens for their ten-tokens counterpart and start earning fees generated from trading activities. Traders and arbitrageurs can earn from price deviations between ten-tokens. Liquidity providers for ten-tokens earn TENEO, the token powering the protocol.
TENEO’s reserves are filled through commitment fees and opening arbitrage opportunities to harness additional fees from arbitrageurs. Ten-token balances (Ten-ETH, Ten-BNB, etc.) receive reflows automatically, allowing users to increase their amount of Ten-tokens that compound over time. Hodl Ten-wBTC and earn more ten-wBTC - it’s that simple.
A crucial problem with most liquidity mining Apps is that annual percentage yields (APY’s) are often unsustainable and volatile as the total value locked (TVL) and the underlying reward token move in opposite directions.
We will adopt a pegged float target rate on TENEO’s emission during our bootstrapping phase to sustain the APY between 40 and 80%, narrowing the range after a smooth price discovery period. Instead of adopting an intensive liquidity mining program that often results in a constantly decreasing price, our efforts are focused on correlating TENEO’s price with the volume and TVL generated by the protocol.
- 10% of the fees collected from the automated market maker (AMM) go directly to providing liquidity for our available pairs, allowing TENEO to create deep liquidity pools over time.
- 70% of the fees collected from the AMM are used to buy back TENEO and provide liquidity for the iTENEO/TEN-TEN pool, acting as an increasing price floor.
As we become less dependent on liquidity providers over time, this will allow the community to introduce more pairs into the ecosystem and focus on driving liquidity in other yield-producing strategies.
Our system is designed to open triangular arbitrage opportunities and increase the spread between tokens and their TEN-token counterparts as liquidity pools accumulate reflows. Arbitrage removes value from LP's, thus the TENEO protocol will act on those arbitrage opportunities and redistribute value to TENEO Hodlers while profiting ten-tokens owners through fees incurred during the process.
The team built TENEO with the idea that this would form a strong foundation for many other DEFI applications, such as vaults and collateralized borrowing. We intend to decentralize the governance and leverage the community’s creativity to drive more value into the protocol. We are currently exploring vault strategies and self-funded loans with LP token collateralization.
We envisioned TENEO as a yield enhancement layer that could be used to drive further integrations on top of it. Our AMM and reflow mechanism allow users to passively earn while still having the opportunity to use the reserve’s liquidity to incorporate further utility. Alongside other passionate developers and business developers, we aim to tap into TENEO’s potential by integrating with other DEFI projects to drive more value to ten-token holders. Vault strategies and self-paying loans are two concepts that would fit perfectly with the vision we have in mind for the TENEO ecosystem.
Together, let’s build!