Engine

Engine contact's workflow

The Engine contract is the core of the tgUSD system, responsible for minting tgUSD and redeeming USDT. Its workflow is as follows:

Deposit Stablecoins and Mint tgUSD

• Users deposit USDT (with support for additional stablecoins planned) into the Engine contract.

• Upon receiving the USDT, the Engine contract immediately transfers the funds to a multisig wallet (which will later be upgraded to a TON adapter).

  Depending on the target strategy:

  • Funds are bridged to external blockchains via Stargate, USDT0, or Symbiosis to generate yield.

  • If the estimated bridge slippage exceeds 0.1%, the transfer is executed via OTC to minimize slippage and protect capital.

  • If the yield strategy is on TON, no bridging occurs—the funds are deployed directly into on-chain opportunities.

• Simultaneously, the Engine contract mints tgUSD for the user at a 1:1 ratio.

Redeem Stablecoins (Redeem USDT)

• Redemption is currently limited to a whitelisted set of users.

• The user burns their tgUSD to initiate the redemption process.

• Once the burn is confirmed, the Engine contract deploys a dedicated Redeem Account to track the redemption request.

• A 14-day cooldown period is required before the user can claim their USDT.

• Alternatively, users who prefer immediate liquidity can swap tgUSD for USDT directly via the Torch Finance Stable Swap.

Purpose of the Cooldown Period

• The cooldown period provides the protocol sufficient time to exit yield-generating strategies and free up collateral.

• For example, most lending protocols rely on a utilization rate model to manage liquidity. When available liquidity drops, borrowing rates rise, which in turn encourages borrowers to repay or face liquidation.

• The cooldown period gives the protocol sufficient time—especially under liquidity stress—to restore a healthier utilization rate, encouraging repayments so that withdrawals can be fulfilled as requested.

In the early stages of the protocol, in order to comply with certain legal constraints and to balance the market with limited capital while ensuring a smooth user experience, the protocol’s multi-signature wallet—under administrative control—reserves the right to cancel or expedite the redemption process. The same applies to unstaking operations.