# Boosted TON-Yield vault

## How it works

You can access the vault [**here**](https://tonyield.app/vaults/1)

User deposits: vault accept TON, stablecoin and other jettons that have been carefully allow listed. Upon deposit the user receive shares of the vault, entitling it to the underlying yield plus its principal.&#x20;

Share issuance: Share issued to depositors are jetton compliant and yield bearing. Any address owning share of the vault can request a withdraw from the vault in non custodial manner

Smart contract mechanisms: Once asset are deposited into the vault, the smart contract allocate it to the strategy. Smart contract will go through the steps of strategy creation, adding to the TVL already present in the strategy. There could be multiple strategies under one vault, hence asset allocation depend on strategy capacity and performance.

## Strategy used

### LP with hedging & staking

LevelQ deploys TON, TON LSTs with USDT into an Automated Market Maker pool. The volatile asset price exposure is hedged by borrowing half of the deposit value on Money Market Protocol before LP, creating a quasi delta neutral positions.&#x20;

If the AMM has staking pools, the LP are staked to earn additional rewards and then compounded.&#x20;

The APY of this strategy depends on couple of factors:&#x20;

* Volumes
* How much is the borrow APR (depends on borrowing demand, driven by speculation)
* How much token reward are distributed to LP stakers.
* Volatility of TON price

This strategy earn in bull, bear and range market. It earn more in steady uptrend or range market with volatility.

Protocols used on TON:

* AMM: STONfi, DeDust
* MMP: EVAA Protocol

#### Any troubles interacting with Boosted TON-Yield vault? Read our FAQ

{% content-ref url="/pages/mkfvmAaU67NixB9UBjaj" %}
[Boosted TON Yield, Vault Launch FAQ](/the-tonyield-academy-faq/boosted-ton-yield-vault-launch-faq.md)
{% endcontent-ref %}


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