Concept

The guiding principles and innovative design behind Torch Finance

Design Principles of Torch Finance

Torch Finance is guided by four foundational principles, ensuring scalability, efficiency, cost-effectiveness, and interoperability.

• Scalability: Flexible architecture to support diverse assets and algorithms.

• Efficiency: Leveraging TON’s sharding for faster and smoother transactions.

• Cost-Effectiveness: Innovative gas-saving techniques to reduce user costs.

• Interoperability: Seamless connectivity within and beyond the protocol.

1. Scalable and Future-Proof Design

Torch Finance adopts a modular approach with Vault and Pool abstraction:

• Universal Asset Support: Any token type or Constant Function Market Maker (CFMM) algorithm can be integrated, including CPMM, Stable Swap, Weighted Pool, etc.

• Algorithm Adaptability: Ready for new market trends and trading needs.

This ensures that Torch Finance remains flexible and scalable, evolving with the TON ecosystem.

2. Unmatched Efficiency with Sharding

By avoiding centralized routers and using a distributed architecture inspired by Balancer, Torch Finance maximizes TVM’s Infinity Sharding Paradigm.

• Faster Transactions: Sharding reduces delays and boosts throughput.

3. Cost Optimization for Every User

Torch Finance’s innovations make DeFi more affordable:

• LP Preminting: Reduces on-chain computational costs during liquidity operations.

• Flash Deposits: Minimizes gas fees for single asset liquidity provisioning.

• Optimized Algorithms: Streamlined processes ensure lower costs across the board.

4. Interoperability for a Connected DeFi Ecosystem

Torch Finance fosters smooth integration across the DeFi space:

• Intra-Protocol Connectivity: Pools are seamlessly interconnected, enabling efficient swaps and routing.

• External Protocol Integration: Built to collaborate with other platforms, enhancing the TON ecosystem’s overall efficiency.

By combining these elements, Torch Finance sets a new standard for DeFi on TON.