Exploring the TON ecosystem's up to 80% annualized return strategy: Leveraged yield farming and Risk Management

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High Yield Opportunities in the TON Ecosystem: In-depth Analysis of 80% Annual Percentage Rate Strategy

Foreword

With the rapid rise of the TON blockchain, new high-yield opportunities have emerged in the DeFi space. This article will explore how to achieve an Annual Percentage Rate of up to 80% in the TON ecosystem(APY).

The Best On-Chain Yield: How to Achieve an 80% Annual Percentage Rate (APY) on TON?

Leveraged Yield Farm Strategy

Leverage yield farming is a strategy to enhance returns, allowing users to provide liquidity for decentralized exchanges and use leverage to amplify returns. For example, if the base yield annual percentage rate is 30%, with 3x leverage, the return can reach 90% before deducting interest (. Users only need to invest USDT as a single asset, without complex operations, and can automatically receive rewards, saving time and fees on manual withdrawals.

) Savings Account

Users can deposit tokens into savings accounts to earn interest. These funds will be lent to participants in leveraged yield farming; the higher the demand, the higher the interest rates. This account is suitable for users seeking stable returns while wanting to maintain their token balance.

Optimized Liquidity Pool

Some platforms have designed optimized liquidity pools specifically for the exchange of TON, stTON, and tsTON, ensuring that users enjoy lower slippage during large transactions. Low slippage trading is particularly important for users who frequently convert assets, as it effectively reduces costs and enhances returns. These types of liquidity pools can also dynamically adjust according to market demand, ensuring fund liquidity and improving trading efficiency.

![The Strongest On-Chain Yield: How to Achieve 80% Annual Percentage Rate (APY) on TON?]###https://img-cdn.gateio.im/webp-social/moments-33e21bb5e50ac04500d92fef1ed35344.webp(

) Detailed Explanation of Leverage Strategy

Leverage yield farming allows investors to borrow additional funds to amplify the position of the yield farm. For example:

  • No leverage: Invest $1000 in a liquidity pool, assuming an Annual Percentage Rate of 30%, you can earn $300 in a year.
  • Use 3x leverage: Total position increases to $3000, with the same 30% Annual Percentage Rate calculated, the annual profit will reach $900.

Leverage strategies can exponentially increase potential returns, but they also come with borrowing costs and liquidation risks.

Market Neutral Farm Strategy

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

Operation example ### 3x leverage (: Assuming holding 1000 USDT, TON price is 5 dollars. Using 3x leverage to participate in yield farming, total position is 3000 dollars:

  • Deposit 1500 USDT into the liquidity pool
  • 1500 USD exchanged for TON, deposited into the liquidity pool

In this way, the sensitivity of the position to the price changes of TON is reduced, achieving theoretical market neutrality.

![The Strongest On-chain Yield: How to Achieve 80% Annual Percentage Rate (APY) on TON?])https://img-cdn.gateio.im/webp-social/moments-7e41697c671d34d8bf87f58723f50e11.webp(

) Risk and Management

High returns are often associated with high risks. Special attention is required when using leverage:

  1. Liquidation Risk: When the debt ratio exceeds 80%, the system will automatically liquidate positions and sell assets to repay the loan.
  2. Impermanent Loss: When the asset prices in a liquidity pool change relative to the initial prices, it may lead to a reduction in returns.

To help users manage risk, some platforms offer health factor monitoring tools that allow users to understand the health status of their positions at any time. During periods of extreme price volatility, users can choose to close and reopen positions to rebalance the risk of impermanent loss.

Conclusion

The leverage yield farming strategy in the TON ecosystem provides investors with the opportunity to earn high returns. Whether it is leverage yield farming or savings, it reflects the effort to simplify the operational process, allowing users to focus on enhancing returns. However, high returns come with high risks, and liquidation risk and impermanent loss are challenges that cannot be ignored. It is recommended that users use leverage cautiously, pay close attention to health factors, and adjust positions in a timely manner during market fluctuations to effectively manage risks and ensure investments achieve ideal returns.

![The strongest on-chain yield: How to achieve 80% Annual Percentage Rate (APY) on TON?]###https://img-cdn.gateio.im/webp-social/moments-c40f03536524bff24f4a7ff845be7d6b.webp(

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OnChainDetectivevip
· 4h ago
Hmm, there must be a whale address behind the high yield trapping.
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ParallelChainMaxivip
· 07-10 00:26
Just take a look, don't play with leverage.
View OriginalReply0
0xTherapistvip
· 07-08 18:56
Impermanent Loss is really scary
View OriginalReply0
BlockchainGrillervip
· 07-08 18:49
This profit is too crazy, let's go All in.
View OriginalReply0
just_another_fishvip
· 07-08 18:44
Wow, such a high annualized rate, scary.
View OriginalReply0
LazyDevMinervip
· 07-08 18:40
Too high risk, I'm out, I'm out~
View OriginalReply0
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