Harvest Rewards on the TON Blockchain: A Beginner’s Guide to Tokenless Farming
The TON Blockchain (Telegram Open Network) has witnessed explosive growth in its Total Value Locked (TVL) this year, surging over 4,800% to reach $669 million. This surge reflects growing interest in DeFi (Decentralized Finance) opportunities on the TON network. This article explores a beginner-friendly strategy for tokenless farming on TON, allowing you to earn rewards using just your TON holdings.
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What is Tokenless Farming?
Traditionally, DeFi farming involves staking or lending cryptocurrency tokens to earn rewards. Tokenless farming, however, eliminates the need for additional tokens. Instead, you leverage your existing holdings within the DeFi protocols themselves to generate returns.
Farming on TON: A Step-by-Step Guide
Here’s a breakdown of a potential tokenless farming strategy on TON:
Step 1: Acquire TON
The first step is to purchase TON tokens on a cryptocurrency exchange that supports it. This TON will be the foundation for your farming activities.
Step 2: Diversify Your Strategy (StormGain)
Head over to StormGain, a derivatives protocol on TON. Allocate one-third of your TON to their vault, currently offering a lucrative 31.46% APR (Annual Percentage Rate). This provides a solid base return for your initial investment.
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Step 3 & 4: Maximize Liquidity (TonStake & Bemole)
Next, visit TonStake and Bemole Finance, both offering liquid staking solutions. Allocate another third of your TON to each platform. TonStake offers 3.17% APY (Annual Percentage Yield) on staked TON, represented as tsTON. Bemole Finance follows suit with 3.28% APY on staked TON, represented as stTON. These protocols allow you to retain liquidity while earning passive income.
Step 5: Leverage Lending & Earn Rewards (EVA Protocol)
EVA Protocol serves as a lending platform within the TON ecosystem. Here, you can lend your tsTON and stTON for additional returns while also earning EVAA XP, the protocol’s governance token. The current APY for lending tsTON is 0.05%, while stTON sits at 0.35%.
Optional Steps: Leverage and Hedging
Step 6 (Optional): Borrowing & Swapping (EVA Protocol)
This step involves a higher level of risk and requires careful consideration. You can borrow jUSDC (a USD-pegged stablecoin) on EVA Protocol at -14.03% APY. However, it’s crucial to remember that borrowing incurs interest, so ensure your overall strategy remains profitable. You can then swap the borrowed jUSDC for USDT (another USD-pegged stablecoin) and deposit it back into the StormGain vault, potentially earning a much higher APR of 71.06%.
Step 7 (Optional): Hedging with Vertex Protocol
For experienced users, Vertex Protocol offers a way to hedge (short) your initial spot TON purchase. This involves essentially betting against the price of TON. If the price falls, you can profit from your short position. Vertex Protocol currently offers an APR of 55.05% via funding at 1x leverage. However, keep in mind that leverage magnifies both profits and losses.
Conclusion:
This strategy demonstrates the potential of tokenless farming on the TON blockchain. While it offers opportunities to earn rewards on your TON holdings, it’s vital to understand the associated risks. Always conduct thorough research and only invest what you can afford to lose. With a cautious approach, tokenless farming on TON can be a rewarding way to participate in the network’s growing DeFi ecosystem.
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Dr. Olajide Samuel juggles the demands of medical studies with a passion for cryptocurrency. A seasoned blogger, Olajide shares his vast global knowledge of the crypto space, offering insights to enthusiasts. Despite his busy schedule, his commitment to crypto remains strong, and he actively seeks ways to contribute to its future.
