TON Swap Review: Are We Looking At The Future Of Yield Farming?

Even today, choosing a decentralized exchange (DEX) to trade assets is a move that receives skepticism. However, the majority of the population thinks of choosing DEXs and enjoying convenience as two mutually exclusive events.

But, today, I am writing about TON Swap, powered by Broxus, a DEX that champions convenience, utility and is a trusted avenue for passive income. Its parent, Free TON, is working towards making decentralized finance (DeFi) an affordable yet inclusive space for all. But, before I dive into the specifics of the DEX, let us learn a thing or two about the project.

An Overview of Free TON

Free TON is a 100% community-backed network capable of facilitating millions of transactions per second. Thanks to dynamic sharding, their users will be charged a fraction of a dollar for all their coin transfers and swaps. They are committed to drive mass adoption of DeFi solutions across the globe.

Free TON is built on a cross-chain platform called TON Blockchain. Equipped with Turing-complete smart contracts, instant hypercube routing, and PoS algorithms, the project is an ideal solution for other major blockchains plagued by the inability to scale.

TON Swap: Coins, Fees, and Deposit Methods

First off, the login process for TON Swap is seamless. The TON Crystal Wallet is available on Google Chrome, which is the only prerequisite to use the platform. It has a 12-word seed phrase for secured login. For existing users of the Crystal Wallet, you need to choose the WalletV3 type, seed phrase, or TON Surf Wallet, and select the assets you own. They also provide an easy upgrade for coins, matching them with the latest version of smart contracts.

Please note that both yield farming and providing liquidity are not possible with regular TON. If you own regular TONs, you can easily swap it for WTON here. Just enter the amount of TON you would like to swap, and add 1 TON to it which shall act as the transaction fee.

You can also swap your ETH tokens to TON using the ETH-TON bridge. This bridge by TON Swap is the right step towards facilitating interoperability between blockchains. I believe these bridges will mitigate the risks of growing congestion, high transaction time, and fees. Wallets like MetaMask, WalletConnect, and others that support ERC20 tokens can be used to transfer them onto the TIP3 token standard on the Free TON blockchain.

I used MetaMask and in a few basic steps, I had my ETH tokens beaming in my Crystal Wallet extension.

How To Provide Liquidity on TON Swap?

To put my WTON to use, Free TON provides me with two opportunities – provide liquidity to token pairs or engage in yield farming.

I had to follow a simple process to provide liquidity. First, I had to choose the tokens that I’d like to provide liquidity. At the time of writing, there were 19 tokens available on TON Swap. The list of tokens gave me a sense of security.

Upon selection, the smart contract was deployed by Crystal Wallet. I only had to authorize my transaction and pay the network gas fee. If you do not have sufficient balance for the transfer, TON Swap shall prepare for the same and ask you for confirmation via its extension

And since I had sufficient balance in my account, I hit the ‘supply’ button. In a few seconds, I received my supply receipt. Unlike other exchanges where I am often left to check the LP tokens, I received on my own, TON Swap provided me with a confirmation receipt that specifies the amount of LP tokens I received. And rightly so, I received the LP tokens in my wallet.

Why You Should Farm on TON Swap?

The seamlessness of the liquidity provision had me in good stead before trying out yield farming on this platform. It is as simple as going to the farming section on TON Swap, selecting the pool I’d like to stake. At the time of writing, there were 9 highly-vetted farming pools for me to stake in. More than $21 Million were collectively locked in the pools with the number rising consistently. The APYs of these pools had me wishing for enough money to stake in each of these pools.

After selecting the pool, I had to input the amount of LP tokens I’d like to stake and confirm it via Crystal Wallet. In less than a minute or two, I could view my share in the pool. The exact reversal of this process can be used to unstake. And for the best part, I am set to earn returns from trading fee which is 0.3% of volume in proportion to my share in the pool. Also, TON Swap distributes the farming rewards daily, giving me an additional reason to increase my staking volume regularly.

Conclusion

Throughout the process, my experience of TON Swap has been smooth. They have finally decoupled the need for technical skills from using DEXs. This is a positive sign as the ease of use and access shall attract naive participants. Also, the farming pools are well-vetted and that gave me a sense of security. And TON Swap’s routine of distributing rewards on a daily basis is a good incentive to maintain participants’ interest.

With all farming pools boasting astronomical APYs, I envision an influx of yield farmers and more traction for the project. Having enjoyed the frictionless TON Swap for a while, recommending it is a no-brainer for me.

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