> 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/lending.md).

# Lending

In lending protocols, there are two primary strategies to amplify your **stgUSD** yield:

1. **Lending** (**Simple Supply, Low Risk)**
   1. **Supply tgUSD**: Earn protocol interest
   2. **Supply stgUSD**: Earn protocol interest **+ stgUSD APY**
2. **Looping (Leveraged Yield Strategy)**
   1. By **supplying ➜ borrowing ➜ restaking into stgUSD**, you can compound your position multiple times, maximizing exposure to **stgUSD APY**.

For example, **EVAA** and **Factorial** are two lending protocols on TON that can support these strategies.

Each time tgUSD or stgUSD is borrowed or minted, market demand increases—indirectly boosting **tgUSD TVL** and creating a **virtuous cycle**.

| Strategy Type                                         | Steps                                                                                                                                                      | Yield Source / Advantage                                                                                     | Risk Warning                                                                                                |
| ----------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------- |
| Supply tgUSD / stgUSD                                 | <p>1. Supply tgUSD or stgUSD<br><br>2. Hold the deposit receipt to earn interest</p>                                                                       | <p>- Lending protocol interest (higher demand = higher rate)<br><br>- stgUSD supply earns additional APY</p> | - No liquidation risk- Exposed only to rate volatility and protocol safety                                  |
| Supply PT → Borrow stgUSD                             | <p>1. Supply <strong>PT</strong> (fixed yield)<br><br>2. Borrow <strong>stgUSD</strong></p>                                                                | <p>- Combined yield from PT + stgUSD APY<br><br>- Leverage amplifies stgUSD returns</p>                      | <p>- Rising borrow rates may shrink or reverse the yield spread<br><br>- Liquidation risk of collateral</p> |
| Supply stgUSD → Borrow tgUSD → Stake tgUSD (→ stgUSD) | <p>1. Supply <strong>stgUSD</strong> as collateral<br><br>2. Borrow <strong>tgUSD</strong><br><br>3. Stake borrowed tgUSD back into stgUSD, and repeat</p> | - Both collateral and borrowed assets end up in stgUSD → maximized APY exposure                              | <p>- Rising borrow rates may shrink or reverse the yield spread<br><br>- Liquidation risk of collateral</p> |

Borrowers and lenders can both decide between **tgUSD** and **stgUSD** based on real-time borrow rates.\
Depending on market conditions, one asset may offer better capital efficiency or higher yield potential than the other.

The above strategies are just a few possible pathways. In practice, users can mix and match protocols, adjust leverage levels, or combine them with other mechanisms to fit their individual goals and risk tolerance.