The TON blockchain is only stepping onto the big world of DeFi, ready to mix it up with the big players. bemo liquid staking app is one of the trailblazers, breaking new grounds, making staking on TON more accessible and rewarding for everyone.
In this post: the benefits of liquid staking with bemo and some extra ways to make your TON holdings work harder for you.
The Growth and Adoption of DeFi on TON
We’re now witnessing how fast DeFi is taking off on the Open Network Blockchain.
The total market value of all assets locked within various DeFi platforms on the TON blockchain has hit $200 million in May 2024, according to data by DeFi Llama. That’s a whopping 300x surge since the start of the year.
The substantial increase in monthly active wallets and TON coin market cap also correlates with the exponential growth in DeFi ecosystem TVL over the same period.
This means users, developers, and investors are all jumping in, making the ecosystem buzz with activity. More importantly, it indicates a larger pool of assets available for various DeFi activities.
With that in mind, now is an ideal time to explore the opportunities offered by DeFi protocols on the TON blockchain.
Why bemo?
bemo is the first and currently one of the leading liquid staking applications on The Open Network blockchain. It offers users the ability to stake their TON tokens while maintaining liquidity to participate in other DeFi activities.
- Unparalleled efficiency and scalability of TON’s blockchain infrastructure delivers a seamless staking experience for app users;
- bemo welcomes stakers of all sizes, as there’s no minimum stake requirement;
- With liquid tokens users get in return for their TON, they can keep participating in DeFi activities, potentially increasing earnings even further while still retaining staking rewards;
- bemo’s incentive program is currently in full swing, giving all users a chance to join a future bemo token airdrop.
That only is a part of all opportunities for bemo users to build custom investment strategies. Follow along for more.
How TON Staking Works on bemo
When users stake their TON tokens to bemo smart contract, they receive the proportionate amount of stTON tokens in return. What is stTON? These are a liquid representation of users’ stake in the total TON pool within our protocol.
- stTON token is designed to appreciate in value over time
As deposited TONs participate in the staking process and generate rewards, the value of stTON tokens grows correspondingly. Essentially, by simply holding stTON tokens, users can earn passive income without needing to actively trade or engage in other activities.
2. The price of stTON is determined by the smart contract
The smart contract adds up the total TON tokens deposited into the bemo pool and the staking rewards earned on top of them. From this total, the contract subtracts the protocol fees — 20% of the staking rewards earned by a user. The resulting sum is then divided by the number of stTON tokens that have been minted and distributed to stakers.
This process makes sure that the price of stTON accurately reflects the value of the assets in bemo’s stake pool.
Practical Example
A user stakes 10 TON tokens and receives 10 stTON tokens. This deposit then earns staking rewards, currently at a rate of around 4% annually. This adds 0.4 TON to initial deposit, increasing the total to 10.4 TON coins.
With the TON pool value increasing, the price of each stTON token also rises proportionally. As a result, the staker’s stTON balance remains at 10 but generates more value per token.
stTON Utility
Unlike conventional staking models that lock up assets, stTON holders can freely utilize their tokens across any DeFi service.
stTON is integrated in all top TON-based apps:
- DEXs: DeDust; STON.fi; Megaton Finance, TegroFinance;
- Lending protocols: EVAA.
Therefore, it can be used for trading, providing liquidity on a DEX for a share of rewards, and as collateral for loans. While you are busy doing all that, your stTON tokens continue to appreciate in value.
Ultimately, bemo users benefit from both the utility of their tokens in various DeFi services and the passive income generated by the increasing value of their stTON holdings.
This provides the flexibility in optimizing various investment strategies. Let’s further review two potential approaches.
1. Maximizing Yield with Leveraged Staking: Case of bemo x EVAA
Mixing staking and borrowing enables TON holders to explore more sophisticated strategies and additional rewards streams. Leveraging their staked assets is one of the methods to amplify returns.
EVAA is a decentralized protocol on TON facilitating permissionless lending and borrowing of one asset for another. Users can supply and borrow TON, USDT, and stTON in addition to other liquid staking tokens.
Let’s look at one of the examples on leveraging the benefits of both platforms, combining staking rewards from bemo with borrowing capabilities on EVAA:
- Users stake any amount of TON tokens on bemo protocol;
- Received stTON tokens can be used as collateral to borrow additional TON tokens from EVAA;
- With the TONs they get from taking a loan against stTON tokens, they can increase their staking position on bemo and receive more stTON tokens to repeat the process.
This cycle of borrowing, staking, and redeploying allows users to increase their overall yield through compounded returns. When considering the strategy, however, it’s crucial to evaluate the risks involved.
2. Amplifying stTON Rewards: Providing Liquidity on DEXs
Alternatively, stakers can utilize their stTON tokens for trading activities on decentralized exchanges or earn rewards by providing liquidity to liquidity pools.
Liquidity pools are reserves of tokens locked in a DEX smart contract. When users supply stTON and TON tokens to pools maintained by DeDust, Ston.fi, or Megaton, they become liquidity providers (LPs).
By depositing assets to these exchanges, LPs help ensure that there are enough tokens available for trading. This benefits stTON holders in several ways:
- LPs earn rewards in the form of trading fees generated by the platform;
- Some DEXs offer additional yield opportunities;
- Simultaneously, LPs continue to accumulate staking rewards from bemo.
Hidden bonus: by doing so, users earn extra incentives from bemo in the form of stXP points, increasing the amount of BMO tokens they may receive in the future airdrop.
bemo Incentive Program and Upcoming Airdrop
As a way to say “thank you” for continued engagement, bemo integrated an incentive program to allocate stXP to users. stXPs are points or credits that stakers earn as a reward for their activity, both within and outside the protocol.
Accumulating stXP makes users eligible for the future airdrop, where they will receive actual BMO — native utility tokens — based on stXP holdings. So keep an eye out for any updates on this!
How to get stXPs?
Farming stXP is all about getting involved in different activities with stTON tokens:
- Stake TON coins on bemo and earn 1 stXP for every minted stTON, with extra bonuses starting from 1,000 TON staked;
- Holding your stTON tokens for more than 3 months earns even more points;
- Join liquidity pools for stTON pairs on decentralized exchanges partnered with bemo.
Find a more detailed tutorial on earning stXP in our previous post.
bemo Tutorial: Your Step-by-Step Guide to Getting Started
Ready to join? Here’s how to get started:
Step 1: Visit a desktop or a Telegram app;
Step 2: Connect your TON wallet;
Step 3: Stake any amount of TON tokens;
Step 4: Find stTON tokens minted to your wallet and use it as you wish!
Step 5: Watch your stXP balance in the Rewards section.
Ready, Set, Stake
In conclusion, bemo offers you the best of both worlds: while you earn staking rewards, your assets remain liquid, allowing TON holders to explore opportunities within the expanding DeFi landscape. As the TON DeFi ecosystem continues to grow, the possibilities for maximizing your assets are bound to increase. So, stake with confidence and stay tuned for even more exciting options on the horizon!
