High Yield Opportunities on TON: Explore 80% Annual Percentage Rate Strategies

In the field of decentralized finance (DeFi), the TON blockchain is developing at an astonishing speed. Several innovative platforms are striving to become the leading service providers for liquid staking tokens, stablecoins, and yield tokens on TON. This article will introduce how to achieve an Annual Percentage Rate (APY) of up to 80% through leveraged yield farming strategies on the TON blockchain.

Market Background

With the rapid development of the TON ecosystem, the demand for high-return strategies is continuously rising. Some innovative platforms have launched leveraged yield farms specifically designed to meet this demand, providing users with high-yield opportunities in the TON DeFi ecosystem.

Main Product Introduction

Leverage Yield Farm

This is a strategy for enhancing returns, where users provide liquidity to decentralized exchanges (DEX) and use leverage to amplify returns. For example, if the base return is an Annual Percentage Rate of 30%, using 3x leverage, the return can reach 90% (before interest deductions). Users only need to use USDT as a single asset investment, without complicated operations, and can automatically receive rewards, saving time and costs associated with manual withdrawals.

Savings Account

Users can earn interest by depositing tokens into the savings account, and these funds will be lent to participants in the 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.

Optimized Liquidity Pool

Some platforms have adopted liquidity pool designs optimized specifically for TON, stTON, and tsTON swaps, ensuring that users enjoy lower slippage during large transactions. Low slippage trading is particularly important because it allows users to effectively reduce costs and enhance returns during frequent asset conversions. These pools can also dynamically adjust according to market demand, ensuring liquidity and improving trading efficiency.

Detailed Explanation of Leverage Returns and Strategies

Leverage Yield Farming and Market Neutral Farming Strategy

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

• No Leverage Used: Invest $1000 into the liquidity pool, assuming an Annual Percentage Rate of 30%, after one year you can earn $300 in profits.
• Use 3x leverage: The total position increases to $3000, and with the same 30% Annual Percentage Rate, the annual return will reach $900.

Leverage strategies can multiply potential returns, but they also come with borrowing costs and liquidation risks. Some platforms offer simplified interfaces that allow users to easily manage risks while maximizing profits.

To reduce the risks brought about by price volatility, the market-neutral farming strategy has emerged. This strategy allows users to maintain stable returns whether asset prices rise or fall, avoiding directional risks.

Example of operation: Market-neutral farming strategy with 3x leverage

Assuming you hold 1000 USDT, and the price of TON is 5 dollars. You decide to use 3x leverage to participate in yield farming, with a total position of 3000 dollars, where:

• Deposit 1500 USDT into the liquidity pool.
• Exchange 1500 USD for TON and deposit it into the liquidity pool.

Ultimately, your position's sensitivity to TON price changes has decreased, achieving theoretical market neutrality.

Risks and Risk Management

High returns are usually accompanied by high risks. When using leverage, special attention needs to be paid to the following two types of risks:

• 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 the liquidity pool change relative to the initial price, it can lead to a reduction in returns. Even with a market-neutral strategy, significant fluctuations in the TON price may still affect the final returns.

To help users manage risk, some platforms provide 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 volatility, users can choose to close and reopen positions to rebalance the risk of impermanent loss.

Summary

The leveraged yield farming strategy on the TON blockchain provides investors with the opportunity to earn high returns. Whether it is leveraged yield farming or savings, these innovative products aim to simplify the operation process, allowing users to focus on enhancing their returns. However, high returns come with high risks, and liquidation risks along with impermanent loss are potential challenges that cannot be ignored. Users are advised to use leverage cautiously, always keep an eye on health factors, and adjust positions in a timely manner during market fluctuations to effectively manage risks and ensure investments achieve ideal returns.