Friends, I finally got off the stove and found his mighty strength to figure out what this new DEX with concentrated liquidity on TON is all about.
In short, he spent 10,000 hours, as suggested in a well-known book, and now he's ready to share his experience with you.
The service is called
TONCO. It operates on the so-called
AMM V3 (CLAMM) model, also known as concentrated liquidity. The essence is that current TON DEXs (like DeDust and STONfi) use the previous V2 model, where liquidity is distributed and traded from zero to infinity. This led to high token volatility during any large trades in the pool. If a whale bought a large chunk of the token, the price would skyrocket. If they sold a big amount, the token would immediately crash. This made price manipulation quite easy.
TONCO allows you to place token pairs in specific price ranges. For example, you specify that you're willing to provide liquidity only within the $5–7 price range for TON, meaning you concentrate liquidity around the current price to maximize its utilization.
This way, liquidity is located where trades occur. As a result, your LP tokens earn more trading fees, and traders experience less price impact because it's harder to shift the price (there’s a concentrated volume in specific ranges).
If the token price moves outside your specified range, a buy or sell transaction occurs. A good analogy would be take-profit and stop-loss orders on centralized exchanges (CEXs).
Take the TON-USDT pair, for example. If TON exceeds $7 (your defined range), the service essentially locks in your profit by selling TON for USDT and sending it to your wallet. You can then decide whether to buy TON back and return it to the pool at its new levels.
Conversely, if TON drops below $5, USDT in your pair will be used to buy TON and send it to your wallet, effectively locking in losses.
The average
APR of this model is around
100%, and that’s without farming rewards. For comparison, DeDust and STONfi currently offer
15-20% APR — a difference of 5–6 times.
Here’s the performance of their TON-USDT pool: launched on November 19, they’ve already attracted
over $1 million without any foundation grants.
The service is developed by
Algebra Labs, whose DEX infrastructure also powers Camelot V3, THENA, QuickSwap, and over 40 other DEXs, with a combined TVL of
$265 million (you can check this via the provided link).
In just
8 days since launch, TONCO reached
$1M+ liquidity across all pairs. Currently, their total liquidity stands at
$2.2M.
They are now highly focused on attracting liquidity to boost their trading volumes. TONCO already ranks third among all TON DEXs (for reference, there’s still the barely alive Megaton, which they’ve already overtaken).
To promote this, they’re running a special campaign:
They launched a
liquidity migrator and are giving away
$2,000 USDT.
Here’s what you need to do:
- Visit
app.tonco.io/#/migrator, compare APR with other exchanges, and eagerly move your position to the concentrated liquidity pool.
Migration Details:- The liquidity migration contest runs
from December 13 to December 27.
-
20 random winners will each receive
$100.
- Winners will be announced on
December 27.
- To qualify, migrated liquidity must remain in the TONCO DEX.
The migration feature launched yesterday, and so far, only $6K has been migrated. It seems like a good opportunity to help the team grow — the technology itself is highly intriguing.
Website: [
app.tonco.io]
Migration link/Migrate Liquidity (
https://app.tonco.io/#/migrator)
P.S. Word in the lodge yesterday was that today they’ll also add farming rewards for the TON-USDT pair, so the yield will go even higher than the current
85% APR. If you deposit liquidity now, you’ll definitely catch the juiciest initial farming period when rewards are the highest.🤟
