Introducing Teneo A Way to Make Profits While Holding Your Tokens


Every trader who survived a long period of crypto holding and/or trading knows the following situation:

One moment you look into your portfolio and are happy because of a great performance with multiple Xs — the next moment all profits are gone… -30%, -50% or even -90% is nothing unusual in the crypto space.

Teneo addresses this. Long term holders, as well as traders and other projects, are able to benefit from the extreme volatility of the crypto markets. The Teneo Project creates a Win-Win-Win situation for all these parties.

How it works

There are two kinds of tokens in the ecosystem:

  1. The Teneo token, a reward token.
  2. Different tenXXX tokens, e.g. tenWBTC, tenETH, ten…

Let’s start with tenXXX: A tenXXX is a pegged token like WBTC. In this example we use ETH: Every time someone locks an ETH, an Automated Market Maker (AMM) mints a tenETH token and in reverse, every time an ETH is unlocked a tenETH gets burned.

Therefore the exchange ratio of ETH:tenETH is nearly 1:1 at any time.

It is only “nearly” 1:1, because there are transaction fees. The whole system benefits from these fees. They are used to buy back Teneo and mainly redistributed to the liquidity provider of the tenXXX token.

But any other transaction fee will also be redistributed to every holder of the tenXXX token in the form of a tenXXX token. We call them reflows.

But why should someone make a transaction with this token that has a fee? Would people not just lock and hold until they want to cash out?

That’s where the ~1:1 ratio comes in. Liquidity pools of tenXXX are rewarded (and also gain reflows). That means there is an arbitrage possibility on every price change of the pegged token in any pool. And in contrast to other similar tokens, there is no possibility to drain wealth out of the system, because the token is pegged (1 tenETH is always worth 1 ETH minus the transaction fee).

This is visible in the chart WBTC:BTC. The price of WBTC is moving +1% to -1% around the BTC price (because of the 1% lock/unlock fees). But every time ETH is moving 10% tenETH will also move ~10% and the gaps in the DEX liquidity pools will be filled by arbitrage traders.

Example

Here is an example:

Looking at other tokens, a usual trading volume per day is 10%.

Teneo takes a fee of 1.1% (0.1% goes into the DAO wallet).

  • Day 1
    Peter locks 1 ETH and receives 0.989 tenETH
    Peters Balance -> 0.989 tenETH
  • Day 2
    Peter earns 1% of 10% (0.1%) through the reflows
    Peters Balance -> 0,989989 tenETH
  • Day 101
    Peter earned in total 10% (100 times 0.1%) after hundred days.
    Peters Balance -> 1.0879 tenETH
    If he unlocks his ETH now, he has to pay the fee of 1.1% again, but still makes easily a profit:
    1.0879 tenETH -> burn/unlock -> 1,0759331 ETH

More Ether for Peter.

Calculated for a year, this results in an APR of 36.5% (uncompounded) for tenETH. Keep in mind when you swap in or out you have to pay fees, so your APY for ETH is 33.5% (uncompounded) in this example.

Win-Win-Win situation

  1. Win for hodlers
    If you want to hold a token long-term, just hold the tenXXX version of this token instead. No searching after months where you had staked or search old pools of any project to unstake, no staking pool that could be hacked, no unstake time — just sell the tenXXX token at any time. Earning by hodling.
  2. Win for traders
    Traders make a profit by using arbitrage, but it makes even more sense to arbitrage between the pools. Arbitrage is an even more “safe” win than the hope to find the right timing.
  3. Win for projects
    Since you need to lock the original token to mint a tenXXX token, the supply of the original token gets shortened. Lower supply means higher value. Teneo also brings projects a staking opportunity, without the need to fund this staking. The trader funds them.

    NFTs

Teneo NFTs will be unique and randomly generated which means that there will be a lot of creations possible.

The theme of the NFTs will be the Roman empire in combination with a cyberpunk touch. So there will be Plebeians, cyber Soldiers and so on.

The community will be heavily included in building this vision. Therefore there will be polls for the community like: Deciding which motives are used for the NFTs, which structure should be used, which games and stories are built around them, etc..

TL;DR

  1. Teneo is the reward token
  2. tenXXX token are pegged/wrapped/synthetic token of an underlying token
  3. tenXXX has transaction fees
  4. Transaction fees are redistributed to holders
  5. Traders profit from arbitrage opportunities
  6. Projects benefit from locked supply and added staking opportunity
  7. The Teneo ecosystem provides roman empire themed NFTs

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