Tensor (TNSR)

Tensor (TNSR)

Most recent update: [April 17, 2024]

What is TNSR?

Tensor is an extensive platform on the Solana network that combines an NFT marketplace aggregator and an Automated Market Maker (AMM). It aggregates NFT listings from 10 different marketplaces, including notable ones like Magic Eden, Hadeswap, and Elixir. The integrated AMM introduces innovative functionalities such as collection-wide bids, immediate liquidity for sellers, market making capabilities, and orders based on bonding curves.

Developed to streamline access to NFTs from various sources, Tensor provides traders with a robust liquidity pool and a diverse array of collections to choose from. The platform enhances the trading experience with advanced features and engaging rewards. Additionally, Tensor includes a "price lock" option, which allows users to engage in long or short positions on NFTs with a minimal initial fee.

Who is behind TNSR?

Tensor was co-founded by Ilja Moisejevs and Richard Wu, who together bring a decade of expertise in developing trading infrastructure and managing data-intensive systems. The seed funding round for Tensor, led by Placeholder, featured investments from Solana Ventures, Alliance DAO, Big Brain Holdings, and Solana co-founders Anatoly Yakovenko and Raj Gokal, among others.

How does it work?

Tensor serves as a central hub for creators where they can oversee their collections and update aspects such as mints, names, and descriptions. It also features a launchpad for various types of Solana NFTs. For traders, Tensor provides a marketplace equipped with deep liquidity, real-time updates, advanced trading functionalities, and the ability to place market-making orders. Additionally, Tensor has launched its own NFT collection called "Tensorians" dedicated to its most dedicated fans.

The TNSR Token and Tokenomics

$TNSR is the governance token of Tensor, allowing the community to control crucial aspects of the protocol. Holders of $TNSR also benefit from discounts on trading fees within Tensor protocols. Specifically, if a listing is made in $TNSR, the protocol fee is reduced by 25%.

The total supply of TNSR tokens is 1 billion. The initial airdrop accounts for 12.5% of the total supply, while the community is allocated 55%, which equals 550 million TNSR tokens. Core contributors receive 27% of the supply. The remaining 18% is reserved for future fundraising activities as well as for investors and advisors.

Security

Currently, the Tensor protocol is closed source to minimize its vulnerability to attacks. The protocols have undergone an audit by OtterSec and are currently being audited by Sec3. Once the second audit is finalized, Tensor plans to transition to an open-source model. The team behind Tensor is also responsible for developing Gem Farm by Gemworks, a staking protocol on Solana that has been open source from its inception. Gem Farm is utilized for staking by over 60% of NFT projects on Solana and has maintained a secure track record with no hacks or breaches for approximately 12 months since its launch.

Drawbacks and risks

Navigating the NFTFi landscape, Tensor encounters inherent risks and hurdles, such as market volatility, regulatory shifts, and the complexities of merging traditional and blockchain finance. The platform's longevity hinges on its adeptness in mitigating these risks, adapting to regulatory evolutions, and sustaining innovation within the swiftly evolving NFTFi sector. Despite TNSR's promising prospects, investors and users must remain aware of the risks associated with NFTFi engagements, including the experimental nature of blockchain financial solutions and the unpredictable market dynamics.

Finally, as common to many Solana tokens and more broadly Proof-of-Stake networks, their blockchain architecture dictates that those with the most staked tokens will have the most sway in the network’s functioning. This effectively places richer wallets in a position of power. Thus, if one person or a group of entities can acquire 50% of the network’s voting power, they would be able to control it.

Due Diligence  

Before listing TNSR on the VirgoCX Platform, VirgoCX performed due diligence on TNSR and determined that TNSR is unlikely to be a security or derivative under Canadian securities legislation. VirgoCX’s analysis includes reviewing publicly available information on the following: 

• The creation, governance, and location of TNSR and/or its primary development team;
• The supply, demand, maturity and liquidity of TNSR; and
• Legal and regulatory risks associated with TNSR. 

Statutory Rights under Securities Legislation

VirgoCX is offering Crypto Contracts on crypto assets in reliance on a prospectus exemption contained in the exemptive relief decision Re VirgoCX Inc. dated May 30th 2022 (the Decision). Please be aware that the statutory rights in section 130.1 of the Securities Act (Ontario) and, if applicable, similar statutory rights under the securities legislation of each other province and territory in Canada do not apply in respect of the Crypto Fact Sheet to the extent a Crypto Contract is distributed under the prospectus relief in the Decision.

Further Reading

To learn more about the technology behind TNSR, check out these in-depth resources here:

• The official site of TNSR
• Coinmarketcap’s overview of TNSR
• Coingecko’s overview of TNSR
• Coinbase’s overview of TNSR, along with the relevant news and blogs related to TNSR.