High-Yield Strategies on the TON Blockchain: Exploring the Possibility of 80% Annual Percentage Rate

In the decentralized finance (DeFi) space, the TON Blockchain is rapidly rising. This article will introduce how to achieve an Annual Percentage Rate (APY) of up to 80% within the TON ecosystem, with a particular focus on an innovative leveraged yield farming strategy.

Development of the TON Ecosystem

With the TON Foundation investing significant funds to support liquidity staking pools, the market demand for high-yield strategies continues to grow. In response to this trend, some innovative financial services are being launched to provide users with high-yield opportunities in the TON DeFi ecosystem.

Main Product Introduction

Leverage Yield Farm

This is a strategy to enhance returns, where users provide liquidity to decentralized exchanges (DEX) and use leverage to amplify returns. For example, if the base annualized return is 30%, with 3x leverage, the theoretical return can reach up to 90% (before deducting interest). Users only need to invest USDT as a single asset, without complex operations, and can automatically receive rewards, greatly simplifying the operational process.

Savings Account

Users can deposit tokens into savings accounts to earn interest. These funds will be lent to participants in leveraged yield farming, with higher demand leading to higher interest rates. Such accounts are suitable for users seeking stable returns while wishing to maintain their token balance.

Optimize Liquidity Pool

Some platforms have launched liquidity pools optimized specifically for the exchange of TON, stTON, and tsTON, ensuring that users can enjoy lower slippage during large transactions. This is particularly important for users who frequently convert assets, as it effectively reduces trading costs, thereby enhancing overall returns.

In-depth Analysis of Leverage Returns and Strategies

Leverage Yield Farming and Market Neutral Farming Strategies

Leverage yield farms allow investors to borrow additional funds to amplify the positions in the yield farms. For example:

• No leverage used: Invest $1000, Annual Percentage Rate 30%, earn $300 after one year.
• Using 3x leverage: total position increases to $3000, with the same 30% Annual Percentage Rate, the annual profit can reach $900.

Although leverage strategies can significantly increase potential returns, they also come with borrowing costs and liquidation risks. To reduce the risks associated with price volatility, market-neutral farming strategies have emerged, allowing users to maintain relatively stable returns whether asset prices rise or fall.

Example of operation: market neutral farm 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:

• $1500 deposited into the liquidity pool in the form of USDT.
• Exchange 1500 USD for TON and deposit it into the liquidity pool.

This configuration reduces the sensitivity of the position to fluctuations in the TON price, theoretically achieving market neutrality.

Risks and Risk Management

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

1. Liquidation Risk: When the debt ratio exceeds 80%, the system may automatically liquidate positions and sell assets to repay loans.
2. Impermanent Loss: Even when employing a market-neutral strategy, significant fluctuations in asset prices may still impact the final returns.

To help users manage risks, some platforms provide health factor monitoring tools that allow users to understand their position status in real-time. During periods of significant price volatility, it may be advisable to close and reopen positions to balance the risk of impermanent loss.

Conclusion

The leverage yield farming strategy on the TON Blockchain provides investors with the opportunity to earn high returns. Whether it is leverage yield farming or savings, these innovative products are dedicated to simplifying the operation process, allowing users to focus on enhancing returns. However, high returns come with high risks, and the risks of liquidation and impermanent loss are potential challenges that cannot be ignored. Users are advised to use leverage cautiously, keep a close eye on health factors, and adjust positions in a timely manner during market fluctuations to effectively manage risks and strive for ideal investment returns.