> For the complete documentation index, see [llms.txt](https://doc.torch.finance/telegram-usd/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://doc.torch.finance/telegram-usd/how-tgusd-works/architecture/current-version.md).

# Current Version

<figure><img src="/files/xXIq3mADR7ut9bWy8oEy" alt=""><figcaption></figcaption></figure>

🔴 **User Actions:**

* **Deposit:**&#x20;
  * Users can deposit stablecoins (currently only **USDT**) into the **Engine contract**, which will mint **tgUSD** at a 1:1 ratio.
  * When the Engine contract receives a user's deposited USDT, it will immediately transfer the funds to the Multisig Wallet to await cross-chain bridging.
* **Redeem:**
  * Users can redeem tgUSD back to USDT.
  * Redemption is currently whitelist-gated and subject to a **cooldown period** before the USDT can be claimed.
* **Stake:**
  * Users can stake tgUSD into the **Staking contract** to mint **stgUSD** based on the current conversion rate.
  * As staking rewards are distributed to stgUSD holders, the **price of stgUSD appreciates continuously over time**.
* **Unstake:**
  * Users can unstake stgUSD to receive **tgUSD** representing both principal and accrued rewards.
  * After unstaking, users must wait a **7-day cooldown period** before claiming.

🔵 **Protocol Operations:**

* **Cross-Chain Yield Generation:**\
  Torch Finance moves assets across chains to generate yield. All associated losses (e.g., slippage, fees) are absorbed by the protocol.\
  Two methods are used:
  1. **Dynamic Bridge Selection:** Depending on the amount and slippage, **the protocol selects the most efficient bridge** from Stargate, USD0, or Symbiosis.
  2. **OTC Support:** If bridge slippage is high or the transaction exceeds the maximum cross-chain transfer limit, **an OTC route is used as a fallback** to complete the transfer efficiently and cost-effectively.

🟢 **Reward Aggregation:**

* Yield earned from external DeFi protocols is aggregated and distributed to **stgUSD holders on TON**.
* The aggregated yields will first be minted into tgUSD through the Engine contract, then directly distributed to the staking contract.

**🟣 Peg Arbitrage Mechanism:**

* When a price deviation occurs between tgUSD and USDT in liquidity pools,\
  **the protocol withdraws staked tgUSD from the Staking contract to perform arbitrage and restore the peg**.
* After the arbitrage is completed, the acquired USDT is **converted back into tgUSD**, which is then **used to repay the borrowed tgUSD** to the Staking contract.