High Yield Strategy on TON: Methods to Achieve 80% Annual Percentage Rate

In the decentralized finance ( DeFi ) field, the TON blockchain is rapidly rising. As the market's demand for high-yield strategies continues to grow, some innovative products have emerged. This article will introduce how to achieve an Annual Percentage Rate of up to 80% in the TON ecosystem ( APY ).

Main Products

Leverage Yield Farm

This is a yield enhancement strategy where users provide liquidity to decentralized exchanges and use leverage to amplify returns. For example, if the base yield is an Annual Percentage Rate of 30%, using 3x leverage, the yield can reach 90% before deducting interest ( ). Users only need to invest USDT as a single asset, with no complex operations required, and can automatically receive rewards, saving time and fees associated with manual withdrawals.

Savings Account

Users can earn interest by depositing tokens into a savings account, and these funds will be lent to participants in leveraged yield farming. The higher the demand, the higher the interest rate. This account is suitable for users who want stable returns while maintaining their token balance.

TriTON

TriTON utilizes a liquidity pool optimized specifically for the exchange between TON, stTON, and tsTON, ensuring that users can enjoy lower slippage during large transactions. Low slippage trading is particularly important as it allows users to effectively reduce costs during frequent asset conversions, thereby enhancing returns. The pool can also dynamically adjust with changes in market demand, ensuring capital liquidity and improving trading efficiency.

Leverage Returns and Strategies

Leveraged Yield Farming and Market Neutral Farming Strategies

Leverage yield farming allows investors to borrow additional funds to amplify their yield farming positions. For example:

• No leverage used: $1000 invested in the liquidity pool, Annual Percentage Rate of 30%, earning $300 after one year.
• Use 3x leverage: total position increases to $3000, with the same 30% Annual Percentage Rate, resulting in an annual income of $900.

Leverage strategies can exponentially increase potential returns, but they also come with borrowing costs and liquidation risks. To mitigate the risks associated with price volatility, market-neutral farming strategies enable users to maintain stable returns whether asset prices rise or fall, avoiding directional risks.

Operation example: market-neutral farming strategy with 3x leverage

Assuming you hold 1000 USDT, and the price of TON is 5 dollars. Using 3x leverage to participate in yield farming, the total position is 3000 dollars:

• Deposit 1500 US dollars in the form of USDT into the liquidity pool.
• Exchange 1500 USD for TON and deposit it into the liquidity pool.

Ultimately, the sensitivity of the position to TON price fluctuations decreased, achieving theoretical market neutrality.

Risks and Risk Management

High returns are usually accompanied by high risks. When using leverage, special attention is needed:

• Liquidation Risk: When the debt ratio exceeds 80%, the system will automatically liquidate positions and sell assets to repay loans.
• Impermanent Loss: When the asset prices in a liquidity pool change relative to their initial prices, it may result in reduced earnings.

To help users manage risks, some platforms offer health factor monitoring tools that allow users to stay informed about the health status of their positions at all times. During periods of significant price fluctuations, users can choose to close and reopen their positions to rebalance the risk of impermanent loss.

Conclusion

The high-yield strategy on the TON blockchain provides investors with the opportunity to earn high returns. However, high returns come with high risks, and liquidation risk along with impermanent loss are potential challenges that cannot be ignored. Users are advised to use leverage cautiously, always monitor health factors, and adjust positions in a timely manner during market fluctuations to effectively manage risks and ensure that investments can achieve the desired returns.