USDton – High-Yield Stablecoin
USDton is Upton Finance’s interest-bearing stablecoin, offering users an opportunity to earn competitive yields on their idle assets. By depositing USDtg or USDT into USDton, users can receive a stable, growing income powered by CeDeFi strategies and returns from U.S. Treasury bonds. USDton provides an experience similar to sDAI, making it an attractive savings vehicle for Telegram users seeking consistent returns without sacrificing stability.
Key Features:
Earns interest from CeDeFi strategies and U.S. Treasury returns.
USDton price grows continuously as interest is added.
Ideal for users seeking a high-yield savings solution within the Telegram ecosystem.
Staking and Earning Interest with USDton
Once users have minted USDtg or hold USDT, they can opt to earn interest by participating in Upton Finance’s high-yield product, USDton:
Deposit into USDton: Users can deposit USDtg or USDT into USDton, which operates like a decentralized high-yield savings account.
Interest Accrual: USDton grows continuously in value as interest accrues from CeDeFi strategies and U.S. Treasury bond returns. These returns are generated from staking the collateral assets and participating in yield-generating DeFi protocols.
Withdrawal: Users can withdraw their USDton at any time, and the value they receive will include the original deposit plus accumulated interest.
Flow
User deposits USDtg/USDT → USDton accrues interest → User withdraws with increased USDton value.
CeDeFi Yield Strategy
The yield mechanism for USDton is powered by a CeDeFi strategy that combines decentralized finance protocols with centralized efficiency:
Custody and Security: USDT deposits are custodied off-exchange and mirrored to top-tier CEX to ensure security.
Delta-Neutral Strategy: Long crypto spot positions and 1x short crypto perpetual positions are employed to ensure delta-neutral stability and 100% backing of USDton.
Yield Generation: Basis arbitrage (CeDeFi) provides a native yield that is currently inaccessible to the vast majority of on-chain users.
Minting USDton: USDton is minted with $USDT and $TON, no fiat exposure and no overcollateralization required. Unlike traditional stablecoins, USDton is yield-bearing, similar to wstETH, with its price continuously appreciating to reflect accrued interest.
Custody and Security: USDT and TON deposits are custodied off-exchange and mirrored to top-tier centralized exchanges (CEX) to ensure security.
Delta-Neutral Strategy: Long crypto spot positions and 1x short crypto perpetual positions are employed to ensure delta-neutral stability and 100% backing of USDton.
Yield Generation: Basis arbitrage (CeDeFi) provides a native yield that is currently inaccessible to the vast majority of on-chain users.
How the Staking Mechanism Works:
User Deposits:
Staking Assets: Users can stake $USDT and $USDtg by depositing these assets into the Upton Finance protocol. These deposits form the basis of their participation in the high-yield staking program.
Token Issuance: In exchange for their deposits, users receive $USDton tokens, representing their staked assets within the protocol.
Earning Returns:
Holding $USDton Tokens: By simply holding $USDton tokens, users start earning returns. These tokens are designed to appreciate in value, reflecting the interest accrued over time.
Interest Calculation: The returns are calculated based on a 15% APY, which is derived from the protocol’s backend strategies. This high-yield return makes Upton Finance an attractive option for users looking for secure investment opportunities.
Backend Strategies:
Secure Custody: To ensure the safety of user funds, all staked assets are stored with reputable third-party custodians like Ceffu. This adds an extra layer of security to the protocol.
Funding Rate Arbitrage: The protocol employs arbitrage strategies on funding rate contract fees. These strategies exploit price differences across various platforms to generate consistent returns.
AI-Driven Trading: Advanced AI and machine learning algorithms are used to optimize trading strategies. These algorithms analyze market trends and execute trades that maximize earnings while minimizing risks.
Detailed Workflow:
Depositing Assets:
User Interaction: Users initiate the staking process by accessing the Upton Finance protocol through our Telegram Bot or web-based interface.
Asset Transfer: They transfer $USDT and $USDtg to the protocol, which are then securely stored with custodians like Ceffu.
Token Issuance and Management:
Receiving $USDton: Users receive $USDton tokens equivalent to their deposited assets. These tokens are pegged to the value of the staked $USDT and $USDtg.
Holding for Returns: By holding $USDton tokens, users automatically earn returns. The value of these tokens increases over time, reflecting the accrued interest.
Generating Returns:
Arbitrage Strategies: The protocol employs arbitrage strategies to take advantage of funding rate differences across platforms. These strategies are carefully managed to ensure consistent and high returns.
AI Optimization: AI-driven trading strategies further enhance returns by analyzing market data and executing optimal trades. This reduces risk and ensures a steady income stream.
Redemption and Liquidity:
Redeeming Tokens: Users can redeem their $USDton tokens for the equivalent amount of $USDT and $TON at any time, providing liquidity and flexibility.
Trading and Liquidity Provision: Alternatively, $USDton tokens can be traded on decentralized exchanges (DEX) or used to provide liquidity in other DeFi protocols. This versatility enhances the utility of $USDton tokens and allows users to explore multiple earning opportunities.
Benefits of Upton Finance’s Staking Mechanism:
High-Yield Returns: Users can earn a 15% APY simply by holding $USDton tokens, with potential increases to 30% through future governance incentives.
Security: The use of reputable custodians and advanced trading strategies ensures that user funds are safe and well-managed.
Efficiency: The protocol’s backend strategies optimize returns while minimizing risks, providing a reliable and efficient investment option.
User-Friendly: The staking process is designed to be simple and accessible, with an easy-to-use interface that caters to both novice and experienced users.
Upton Finance’s staking mechanism not only offers high returns but also prioritizes security and efficiency, making it an ideal choice for users looking to maximize their earnings with minimal risk. Join us in transforming the financial landscape with our innovative staking solutions.
Last updated
