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On this page
  • 1. Used as Margin for Leveraged Trading
  • 2. Used to Provide Liquidity and Earn Platform Fees
  • Extended Strategies with tgUSD-LP Tokens
  1. How tgUSD Works
  2. Use Cases
  3. DeFi

Derivatives

tgUSD can be integrated into derivatives protocols on TON in two key ways—enabling leveraged trading for users and providing liquidity to the system.

1. Used as Margin for Leveraged Trading

  • tgUSD can be deposited as margin collateral to open leveraged positions on perpetual trading platforms such as Storm Trade or Tradoor.

  • By using tgUSD directly, traders avoid the volatility of native assets like TON and benefit from stablecoin-denominated exposure and settlement.

  • This offers more predictable capital management, particularly in volatile markets.

2. Used to Provide Liquidity and Earn Platform Fees

Alternatively, users can deposit tgUSD into a derivatives protocol’s liquidity vault, minting LP tokens (e.g., SLP on Storm Trade) that represent a proportional share of the trading pool.

These vaults act as the counterparty to all trades:

  • When traders incur losses, the vault absorbs their losses—benefiting LP holders.

  • When traders profit, the vault pays out—posing potential risk to LP holders.

  • In return, the protocol distributes fees (from trading, funding, liquidations), with 70% or more shared with LP token holders.

This is a more conservative approach to participating in derivatives: users don’t take directional trading risk directly, but still earn yield based on overall market activity.

Extended Strategies with tgUSD-LP Tokens

LP tokens minted from tgUSD (e.g., SLP) can be further integrated into broader DeFi strategies:

These strategies not only expand tgUSD’s utility across the DeFi ecosystem, but also establish deeper integrations with lending, yield structuring, and leverage protocols. By entering through derivatives use cases, tgUSD drives sustained demand and cross-protocol liquidity—contributing directly to TVL growth and reinforcing its position as a core stable asset on TON.

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Last updated 11 days ago

Looping via Lending LP tokens can be used as collateral in lending protocols to borrow more tgUSD, which is reinvested into derivatives vaults to amplify yield. → See the section for more.

Yield Tokenization LP tokens can be split into PT (Principal Token) and YT (Yield Token), enabling users to fix returns or speculate on variable yield. → See the section for more.

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Lending
Yield Tokenization