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

With the rapid development of the DeFi sector, the TON Blockchain is showing remarkable growth momentum. In this fast-paced ecosystem, some innovative platforms are dedicated to providing users with high-yield investment opportunities. This article will delve into how to achieve an Annual Percentage Rate (APY) of up to 80% on the TON Blockchain.

Market Background and Demand

With the expansion of the TON ecosystem, the market's demand for high-yield investment strategies is continuously increasing. Some platforms are developing innovative solutions to meet investors' pursuit of high returns.

Main Products and Strategies

Leveraged Yield Farm

This is a strategy aimed at increasing returns, allowing users to provide liquidity for decentralized exchanges (DEX) and use leverage to amplify returns. For example, if the underlying annual yield is 30%, using 3x leverage could potentially make the return reach 90% (before interest deductions). It is worth noting that users only need to invest USDT as a single asset, without complex operations, and can automatically receive rewards, saving the hassle of manual withdrawals.

Savings Account

Users can deposit tokens into a savings account to earn interest. These funds will be lent to users participating in leveraged yield farming, and as demand increases, the interest rates will rise accordingly. This type of account is particularly suitable for those who wish to achieve stable returns while maintaining their token balance.

Optimized Liquidity Pool

Some platforms are developing liquidity pools specifically optimized for the exchange of TON, stTON, and tsTON. These pools are designed to ensure that users can enjoy lower slippage when making large transactions. Low slippage trading is particularly important for users who frequently convert assets, as it can effectively reduce trading costs and improve overall returns. These pools can also dynamically adjust based on market demand to ensure fund liquidity and enhance trading efficiency.

Leverage Yield and Market Neutral Strategies

Leverage yield farming allows investors to borrow additional funds, thereby amplifying their positions in the yield farm. For example:

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

To reduce the risks brought by price fluctuations, the market-neutral farming strategy has emerged. This strategy allows users to maintain relatively stable returns regardless of whether asset prices rise or fall, effectively 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. Using 3x leverage to participate in yield farming, the total position is 3000 dollars:

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

This configuration reduces your position's sensitivity to TON price fluctuations, achieving theoretical market neutrality.

Risk and Management

High returns are often accompanied by high risks. When using leverage, special attention should be paid to the following risks:

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

To help users manage risks, some platforms provide health factor monitoring tools that allow users to understand their position status at any time. During significant price fluctuations, it is recommended to close and reopen positions to rebalance the risk of impermanent loss.

Conclusion

The leveraged yield farming strategy on the TON blockchain provides investors with the opportunity to earn high returns. Whether it's leveraged yield farming or savings products, efforts are made 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 potential challenges that cannot be ignored. Users are advised to use leverage cautiously, closely monitor health factors, and adjust positions appropriately during market fluctuations to effectively manage risks and ensure investments achieve desired returns.