FAQ
1. What is SettleTON?
SettleTON is the first protocol designed to increase your yield within the TON ecosystem. The project optimizes farming by automatically reinvesting all earned rewards back into liquidity pools, enabling you to achieve the maximum APY through compound interest.
Key Features:
Auto-reinvestment and boosts increase profitability.
The platform allows investments in liquidity pools where reinvestment is automatic, raising the APY.
Easy to use: only two transactions needed to deposit and withdraw funds.
Lower fees and higher yields compared to managing it manually on DeDust.
2. How does SettleTON work?
SettleTON operates on smart contracts that invest your funds in liquidity on decentralized exchanges (DEXs). The platform automatically reinvests earned tokens, increasing the return on your investment.
Process:
You deposit TON into the pool.
The protocol buys tokens and automatically reinvests profits.
The platform not only manages liquidity but also helps avoid high fees and delays on DEXs.
3. What are the advantages of SettleTON?
Simplified Process: No need to manually swap tokens or monitor farming activities. Everything is handled by smart contracts.
Gas Savings: The Batcher (optimizer) helps reduce transaction costs, shortening swap times from 3 minutes to 20 seconds.
Accessibility for All: Even with small investments (starting at 250 TON), you can participate in farming, save on fees, and speed up operations.
4. What are Vaults and how do they work?
Vaults are investment products that automatically manage user assets to enhance yield through reinvestment. These vaults are connected to specific investment instruments, such as liquidity pools on DEXs.
Vault features:
They aggregate user funds to implement investment strategies.
Strategies include participation in farming and other DeFi tools.
Vaults periodically rebalance to ensure optimal profitability.
5. What are Indexes?
Indexes are sets of different Vaults combined into a single financial product. They provide more efficient liquidity management and higher yields by aggregating assets.
6. How does the Reward Points (RP) system work?
RP is a rewards system for users who actively provide liquidity or participate in the referral program. Rewards are given for contributions to the platform and can be used for bonuses, NFTs, or yield boosting.
How RP is earned:
1 TON liquidity = 1 RP/hour.
Referral bonuses:
5% from first-level rewards.
2% from second-level rewards.
Owners of SettleTON Privileged Access NFTs receive boosts to increase RP.
7. What are SettleTON NFTs?
SettleTON has two NFT collections:
SettleTON Privileged Access: These NFTs grant privileges like access to exclusive tools and increased RP bonuses.
SettleTON Crypto Beasts: A gamified collection where each NFT type (hamster, turtle, bull, whale) provides unique farming benefits for RP, with additional utilities to be announced in the future.
8. What risks are associated with using SettleTON?
Smart Contract Risks: All operations are executed via smart contracts, which may have vulnerabilities, especially if they haven’t been audited.
Impermanent Losses: Providing liquidity in DeFi could result in a loss of asset value due to price fluctuations.
Third-party Risks: SettleTON relies on platforms like DeDust and StonFI, which may have their own risks.
9. How can you earn with SettleTON?
SettleTON allows you to earn by:
Providing liquidity and reinvesting rewards.
Participating in the referral program.
Owning NFTs that speed up RP farming.
Yield example:
7000 TON investment could yield 6.7 TON per day (35% APY), with a reinvestment fee of 0.67 TON.
On DeDust, fees are around 0.8 TON.
10. What fees are charged on the SettleTON platform?
Market Maker Fee: 1% on buying and selling an index if the deposit does not exceed the current liquidity of Batcher.
Reinvestment Fee: 10% on each reinvestment.
Gas Fee: If using third-party services (DeDust/StonFi), the user covers the gas fee.
11. How does reinvestment work?
Reinvestment is activated when the TVL (Total Value Locked) in a Vault reaches 5000 TON. Until this point, reinvestment follows an optimization curve.
12. What is configuration change and how does it affect my deposit?
SettleTON's configuration can change based on market conditions and optimization strategies. Smart contracts and Vaults periodically rebalance assets to align with current market trends, improving yield. These changes are automatic and seamless for users.
13. Is there an audit of SettleTON's smart contracts?
As of now, SettleTON’s smart contracts have not undergone an official audit. We are actively in discussions with audit providers and exploring potential grant opportunities to support the audit process.
An official audit is already scheduled; however, even after the audit, new risks cannot be completely ruled out. Following the audit, the source code will be made publicly available to further enhance user trust in the protocol.
14. What benefits does SettleTON offer for passive investors?
SettleTON is ideal for passive investors who want to earn without active involvement. The investment process is reduced to two simple transactions: depositing and withdrawing funds. Afterward, smart contracts take care of token purchases, pool placement, and reinvestment of rewards, significantly increasing your APY over time without the need for constant action.
Furthermore, automation, including token swaps and liquidity placement, makes SettleTON especially advantageous for users who don’t want to manage assets manually. For deposits of up to 7000 TON, SettleTON provides better conditions compared to traditional DEXs, thanks to minimal fees and process automation.
15. What return can you expect from SettleTON?
Returns from SettleTON depend on factors such as deposit size and current liquidity pool yield. For example, a 7000 TON investment with a 35% APY could yield approximately 6.7 TON daily. With a 10% reinvestment fee, you would earn around 6.03 TON per day.
Compared to traditional methods on DeDust or other DEXs, this is a significantly more profitable option, as gas and other fees typically cost much more.
16. How does SettleTON's referral program work?
The SettleTON referral program allows you to earn Reward Points by inviting friends. Bonuses vary based on whether you own NFTs from the SettleTON Privileged Access collection.
NFT holders get higher bonuses: 10-15% of first-level referral rewards and additional bonuses at second level.
Without NFTs, users can earn 5% from first-level rewards and 2% from second-level rewards.
17. What risks are associated with investing through SettleTON?
Investing via SettleTON comes with the following risks:
Smart Contract Risks: As the smart contracts have not been audited, vulnerabilities may exist.
Impermanent Losses: Price fluctuations in pool assets could lead to impermanent losses, even if the pool's total size increases.
Third-Party Risks: SettleTON depends on third-party platforms (DeDust, StonFi) that may have vulnerabilities of their own.
It's recommended to thoroughly assess the risks and invest only what you are prepared to lose.
18. Where can I find more information about SettleTON?
Watch our YouTube video for more details.
Read the SettleTON protocol GitBook for comprehensive documentation.
Join our SettleTON channel for updates and SettleTON chat for discussions.
19. What is APR and APY, and why are they important in SettleTON?
APR (Annual Percentage Rate) and APY (Annual Percentage Yield) are two key metrics used to assess the return on your investment.
APR is the annual interest rate showing what you would earn over the year without considering reinvestment of earnings.
APY includes both the interest earned and the effects of reinvesting those earnings. Thus, APY reflects compound capital growth and can exceed APR if earnings are reinvested regularly.
In SettleTON, these metrics help investors understand the potential returns over a year depending on whether earnings are reinvested.
20. How has the SettleTON team established itself in the blockchain community?
The SettleTON team gained recognition by winning first place at the TON Foundation's Open League Hackathon in the DeFi track. This demonstrates the team's high level of competence and innovation as they actively develop the DeFi ecosystem on the TON platform.
The victory at such a prestigious hackathon affirms that SettleTON is a reliable and progressive project aiming to improve the DeFi user experience.
21. Have more questions?
Feel free to ask your questions in our SettleTON chat, and we'll respond within 24-48 hours depending on our workload. We usually reply much faster :)
Last updated