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Preface

In the Decentralized Finance world, TON Block is rising at an astonishing speed, and Torch Finance is committed to becoming the preferred liquidity stakeToken and stablecoin & yieldToken exchange service on TON. This article will introduce how to achieve up to 80% Annual Percentage Rate (APY) on TON Block on-chain through Torch Finance's leveraged yield farming strategy.

Torch Finance Objectives

With the TON Foundation's $24 million investment to support DeDust and STON flow staking pools, the market's demand for high-yield strategies continues to rise. Torch Finance's leveraged yield farm is precisely designed to meet this demand, offering users high-yield opportunities within the TON Decentralized Finance ecosystem.

Main Products

Leveraged Yield Farm:

This is a strategy to enhance yields, where users provide Liquidity to DEX and amplify returns using leverage. For example, if the underlying yield is 30% annualized, with 3x leverage, the yield can reach 90% (before deducting Interest). In addition, users only need to invest USDT as a single asset, without the need for complex operations, and can automatically claim rewards, saving time and fees for manual withdrawal.

储蓄account：

Users can earn Interest by depositing Tokens into a savings account. These funds will be lent to participants in the leverage yield farm, with higher demand resulting in a higher Interest Rate. This account is suitable for users who want stable earnings while maintaining their Token balance.

TriTON:

TriTON is designed with a Liquidity pool optimized for the exchange of TON, stTON, and tsTON, ensuring that users can enjoy lower Slippage when trading large amounts. Low Slippage trading is particularly important because it can effectively reduce costs for users in frequent asset conversions, thereby increasing returns. The pool can also dynamically adjust with market demand to ensure Liquidity of funds and improve trading efficiency.

Leverage Profit and Strategy

What is Leveraged Yield Farming and Market Neutral Farming Strategy?

Leveraged yield farm allows investors to borrow additional funds to amplify the Position of the yield farm. For example:

• Without using leverage: You invest 1000 US dollars in the liquidity pool of DeDust. Assuming the Annual Percentage Rate is 30%, you can earn 300 US dollars after one year.
• Using 3x leverage: Total position increased to $3000, with the same 30% Annual Percentage Rate calculation, the annual profit will reach $900.

Leverage strategies can multiply your potential returns, but they also come with borrowing costs and liquidation risks. Torch Finance provides a simplified platform for users to easily manage risks while maximizing profits.

To mitigate the risks associated with price fluctuations, Torch Finance has introduced a market-neutral farming strategy. This strategy allows users to maintain stable returns regardless of whether the asset prices rise or drop, avoiding directional risks.

Operation Example: Market-Neutral Farming Strategy with 3x Leverage

Assuming you hold 1000 USDT, with TON priced at $5. You decide to participate in the yield farm with 3x leverage, with a total Position of $3000, where:

• Deposit $1500 in USDT to the liquidity pool.
• Exchange 1500 US dollars for TON and deposit into the liquidity pool.

In the end, the sensitivity of your Position to the price changes of TON drops, achieving theoretical market neutrality.

Risk and Risk Management

High returns usually come with high risks. When using leverage, it is important to pay special attention to the following two risks: 01928374656574839201

• Liquidation Risk: When your debt ratio exceeds 80%, the system will automatically liquidate your Position, selling assets to repay the loan.
• Impermanent Loss: When the price of assets in the liquidity pool changes relative to the initial price, it may lead to a reduction in returns. Even with a market-neutral strategy, significant fluctuations in TON price may still affect your final returns.

To help users manage risk, Torch Finance provides a Health Factor monitoring tool that allows you to stay informed about the health of your Position. During periods of significant Fluctuation in price, you can choose to close and re-open your Position to rebalance the risk of Impermanent Loss.

How to Participate

With just three simple steps, you can use all the product features of Torch Finance on Telegram:

1. Open the Torch Finance Telegram bot:

2. Click on the DEX function

3. Connect Wallet, which can be the TON space Wallet built into Telegram or other Wallet that supports the TON blockchain.

Snap Point of View

Torch Finance's leveraged yield farming strategy provides investors with the opportunity to earn high returns on TON Block on-chain. Whether it's leveraged yield farming or savings, Torch Finance demonstrates its commitment to simplifying the operation process, allowing users to focus on increasing returns. However, high returns come with high risks, and liquidation risk and Impermanent Loss are potential challenges that cannot be ignored. Users are advised to use leverage cautiously, always follow healthy factors, and adjust positions timely during market fluctuations to effectively manage risks and ensure that investments can achieve the desired returns.