Is Tetraguard the financial safe haven you were looking for? The yield-generating protocol shows potential
Let’s take a look at Tetraguard, a new token with a twist. It actually represents a basket of major cryptocurrencies, and it rewards the user for just holding it. That basket consists of Bitcoin, Ethereum, PAX Gold, and Quadron, a new asset that serves as the system’s fee token. PAX G is part of the mix because it “represents the most liquid gold backed stable coin.” In the project’s whitepaper, Tetraguard defines itself as “a decentralized smart token basket of major coins with shared transaction fees and staked ETH.” Let’s unpack that.
As you probably know, just buying and holding BTC or ETH doesn’t produce yield besides the currencies’ price increases. In Tetraguard’s case, “TETRA’s competitive edge is low overhead with transaction fees and staked ETH shared on a pro-rata basis among all token holders.” That’s right, the fees and the yield the staked ETH produces are automatically shared proportionally among all TETRA holders.
The Tetraguard system runs over the Ethereum blockchain, and the operation is “100% run by the TETRA’s audited smart contract.” That means that no central authority has access to your or anyone’s funds. They are all locked in the smart contract with clear rules about how to share the booty, and how to liquidate users that want to end their Tetraguard experience. In that case, the system just sells the assets that constitute a TETRA and pays the user in ETH.
What is a TETRA and what’s in it?
In a way, Tetraguard is akin to a decentralized crypto ETF. The whole operation revolves around TETRA, a new asset that, according to the whitepaper, “is composed of wrapped coins including wrapped BTC, wrapped PAXG, ETH, and the Quadron token (QUAD) holding transaction fees and staked ETH.”
Each TETRA is composed of:
- 1 WBTC
- 13 ETH
- 26 WPAXG
- 23632 QUAD
The Protocol runs on smart contracts, which were audited by ConsenSys, which states, “ “code for Quadron’s and Tetraguard’s Smart Contracts have been tested and reviewed using Consensys MythX security analysis tools and found to have zero vulnerabilities.” Those contracts, for their part, permit the protocol to contain “blockchain-based reserves with no third-party holding the funds,” according to the whitepaper.
Those contracts also guarantee that “all assets are stored directly on the Ethereum blockchain and are not controlled, managed or stored by any third party. All transactions and assets are visible on Etherscan anytime to anyone from anywhere.” Speaking about transactions, a “fee of 1% is charged every time a TETRA is either created upon purchase, or canceled on liquidation.” Those “transaction fees and staked ETH are shared on a pro-rata basis by all TETRA holders via the QUAD.”
What is the QUAD?
The fee and reward token is the key to the whole Tetraguard system. The whitepaper explains, “The TETRA works in tandem with the QUAD, its transaction fee and staked ETH token. The QUAD sits inside the TETRA and is the fee and staked ETH-collecting token. The QUAD is the growth engine of the TETRA.” This process is possible because most transactions will take place on the system’s internal “decentralized liquidity pool, the TETRA Automated Market Maker (AMM).”
The protocol’s safety relies on the simple fact that most of the QUAD is effectively locked within the TETRA baskets. “Unlike the fiat currencies, a “run” on the reserve of the QUAD would be highly unlikely because the holder of the TETRA would have to liquidate the entire basket just to access the QUAD reserve,” explains the whitepaper.
Another effect that the system’s decentralized liquidity pool has is that Tetraguard doesn’t need to be listed in exchanges, be it centralized or decentralized, to have liquidity. The Tetraguard protocol has “its own built-in liquidity mechanism within its smart contract.”
To summarize it all, Mark Fidelman, founder of SmartBlocks,, told PMnewswire:
“The goal of Tetraguard is to make it easy to purchase a basket of high-performing wrapped coins plus the QUAD, a rewards token that shares transaction fees with all TETRA holders. Instead of the fees going to exchanges, Tetraguard automatically distributes the fees to all Tetraguard token holders and the TETRA also uses its own automated decentralized trading algorithm to automatically mint and cancel TETRA tokens as they are bought and sold. All assets are stored directly on the Ethereum blockchain and are not controlled, managed or stored by any third party.”
The verdict: Is Tetraguard a good investment?
According to the project’s website, Tetraguard was “built on 5 key principles.” The first one is “Transparency,” and we established that every operation will be visible on Etherscan and the smart contracts have been audited. The second, being “Programmatic,” and we learned that it all happens automatically, without a third party’s involvement. The third is “Decentralization” and the fourth “Censorship Resistance,” and the lack of a central authority guarantees both, The last one is “Game Theory Compatible.”
The tokenomics are as clear as day. Do you think they will attract other users? How many do you think those will be? How will people react to this clever system that generates yield? If you are in, would you recommend it to your friends? Do you think FOMO will get them to invest alongside you? If those tokenomics, the clear rules under which this whole protocol will operate, spoke to you and the answer to all those questions is yes, you know what to do.
Remember to always do your own research before investing, though.