> 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/use-cases/defi/dex.md).

# Dex

Both redeeming tgUSD for USDT and unstaking stgUSD for tgUSD require a cooldown period. For users needing immediate liquidity, exchange swaps become the only instant solution. This mechanism generates genuine market maker demand for tgUSD and stgUSD.

This drives real demand for market makers, and as more users swap for immediate redemption, it generates trading fees for LPs and creates price deviations—opening up arbitrage opportunities (See [Arbitrage](/telegram-usd/how-tgusd-works/use-cases/defi/arbitrage.md) section).

| Type                                           | Protocol                                                                                                                                                                                                                   | Benefits                                                         |
| ---------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------- |
| **Stable Swap (Curve formula)**                | [Torch Finance](https://app.torch.finance/pools#/swap?tokenIn=1%3A0%3Ab113a994b5024a16719f69139328eb759596c38a25f59028b146fecdc3621dfe\&tokenOut=1%3A0%3A89ec04b13a423a5ace4187c27be1765b457f3ceb58c5813653e360d7bfbd7e50) | Best for **large-volume swaps** between tgUSD, stgUSD, and USDT  |
| **Stable Swap (DeDust formula)**               | [DeDust](https://dedust.io/pools/EQDoBbJWXOJUPXEvf8qWpAk7B9p1gYTSVJJVE7wzDofzb52n)                                                                                                                                         | Best for **small-volume swaps** between tgUSD, stgUSD, and USDT  |
| **AMM**                                        | <p>- DeDust<br><br>- STON fi</p>                                                                                                                                                                                           | Enables swaps with **external assets** such as TON               |
| **CLMM (Concentrated Liquidity Market Maker)** | <p>- Tonco<br><br>- Titan</p>                                                                                                                                                                                              | Increases capital efficiency by allowing **custom price ranges** |

All DEXs above carry the risk of **impermanent loss (IL)**. While CLMM can significantly improve capital efficiency, it also introduces operational complexity:

* Inefficient range settings
* Manual range adjustments
* Manual fee/reward harvesting and reinvestment

If a protocol like **Kamino (from Solana)** emerges on TON to automate CLMM liquidity management, it would greatly improve the user experience.