Unlock Passive Income: Earn Yield with tsUSDe on TON
Are you looking for a way to make your crypto work for you without the constant price swings of volatile assets? If you hold dollar-pegged assets, earning passive income is a common goal. On The Open Network (TON), tsUSDe (the staked version of USDe) offers a path to generate yield on your dollar savings. This stablecoin is designed to earn yield inherently, and you can increase those earnings by using it on TON-based decentralized finance (DeFi) platforms like STON.fi and DeDust. Let’s explore how this works and how you can get started.
What is tsUSDe and Why Consider This Stablecoin?
tsUSDe is a stablecoin on the TON blockchain, aiming to maintain a peg to the US dollar. A key feature of tsUSDe is its built-in base yield, which is paid out in Toncoin (TON). This means holding tsUSDe can earn you rewards just by having it in your wallet, without needing to perform complex actions. For those seeking higher returns, engaging in yield farming on TON platforms provides an opportunity to boost earnings further. It allows you to potentially grow your dollar-denominated savings.
Where to Find TON Yield Farming Opportunities for tsUSDe?
Currently, two notable platforms on TON offer active yield farming options for tsUSDe:
- STON.fi: Known for its user experience and liquidity.
- DeDust: A fast platform gaining popularity.
Both platforms enable you to pair tsUSDe with TON in liquidity pools. By providing liquidity, you can earn a share of trading fees generated by the pool. Additionally, these platforms often provide extra farming rewards as incentives for liquidity providers.
Did you know? STON.fi includes tools to help assess risk before adding liquidity, while DeDust offers a dashboard to track your assets, liquidity positions, and rewards.
Step-by-Step: How to Start Yield Farming with tsUSDe
Here is a simple process to begin earning yield by providing tsUSDe liquidity:
- Connect Your Wallet: Go to STON.fi or DeDust.io and connect your TON wallet. Ensure you have sufficient TON in your wallet to cover transaction fees.
- Select a Pool: Navigate to the liquidity pool or farm sections. Find the tsUSDe/TON pool. The estimated APY (Annual Percentage Yield) is displayed, which can change based on trading activity and incentives. Yields on platforms like STON.fi have reached significant percentages.
- Add Liquidity: Choose to add liquidity to the pool. Enter the amount of tsUSDe you wish to provide. You will need to contribute an equivalent value in TON. Confirm the transaction. You will receive LP (liquidity provider) tokens representing your share of the pool.
- Stake for Rewards: To earn additional farming rewards, stake your LP tokens. On STON.fi, look for the staking option next to your position. On DeDust, this feature might be labeled differently but serves the same purpose. Staking your LP tokens makes you eligible for extra rewards, often paid in TON, on top of the trading fees you earn.
- Monitor and Claim: You can check your accumulated rewards at any time. Rewards can typically be claimed whenever you choose. You maintain control over your assets and can unstake or remove your liquidity when needed.
What are the Benefits of Earning Passive Income with tsUSDe?
Using tsUSDe for passive income offers several advantages:
- Dollar Stability: tsUSDe aims to remain pegged to the US dollar, reducing volatility compared to other cryptocurrencies.
- Built-in Yield: tsUSDe provides a base yield just by holding it.
- Extra Rewards: Farming on platforms like STON.fi and DeDust allows you to earn additional rewards.
- Non-Custodial: You retain control of your funds throughout the process.
Understanding Risks of TON Stablecoin Yield
While earning yield with stablecoins on TON can be rewarding, it is important to be aware of potential risks:
- Impermanent Loss: When the price ratio between tsUSDe and TON changes significantly after you add liquidity, you might experience impermanent loss. This means the dollar value of your assets when you withdraw could be less than if you had simply held the individual tokens outside the pool.
- Smart Contract Risk: DeFi platforms rely on smart contracts. There is always a risk of bugs or exploits in the code that could affect deposited funds.
- Stablecoin Peg Risk: Although designed to be stable, extreme market conditions could potentially cause a temporary depeg of tsUSDe from the dollar.
It is advisable to use established platforms and only invest funds you are comfortable with.
Did you know? TON supports TON Proxy, a decentralized protocol designed to enhance privacy by obfuscating user identities and traffic.
Earn Yield with tsUSDe, With Caution
If you hold tsUSDe, utilizing it on TON DeFi platforms can be a way to potentially increase your earnings. You benefit from the stablecoin’s base yield and have the opportunity for higher returns through yield farming on platforms like STON.fi or DeDust. The process is straightforward, but understanding the risks involved is crucial. Start with an amount you are comfortable losing, monitor your positions and rewards, and make informed decisions. This article does not provide investment advice. Every investment and trading action carries risk, and readers should conduct their own research before making decisions.
