Torch DEX: Stable Swap on TON

Swapping one dollar stablecoin for another sounds easy until you see the rate: in ordinary pools a large amount can lose value to slippage. Torch DEX was designed to cut that loss. 🔥

It is a Telegram Mini App where stablecoins and price pegged tokens are exchanged on the TON network.

What StableSwap means

An ordinary liquidity pool prices trades with a simple formula, and the bigger the trade, the more the rate drifts. StableSwap uses different math tuned for assets whose prices are nearly equal. For a pair such as two dollar coins, the rate stays close to one even on large amounts.

The project describes itself as a stablecoin liquidity hub on TON with an institutional grade focus. It is inspired by a well known protocol of this type and states backing from the TON Foundation.

What is inside the Mini App

The bot description lists three directions: StableSwap exchange, stablecoins and payment solutions (PayFi). The bot has a set of commands for orientation and help.

• /start. Launch the app.
• /support. Get help using the bot.
• /terms. Read the terms and conditions.
• /bug_report. Report a bug to the developers.

Open the terms before your first operation. They state what the service is responsible for and what it is not. 📄

The project's own stablecoin

The team released a stablecoin called tgUSD, described as backed one to one. At launch the backing was USDT. Note that it is issued by the project and not by Telegram itself.

Any stablecoin rests on trust in its backing and mechanics. Read how the backing is described and what the redemption terms are before holding a meaningful amount there.

The risks of stablecoins and pools

The word stable does not mean safe. DeFi deposits carry their own dangers.

• Loss of the peg. A stablecoin can fall below a dollar if the issuer or backing fails.
• Smart contract bugs. Even reviewed code can hide a vulnerability.
• Variable yield. Any published rate changes over time and is not guaranteed.
• Address and network mistakes. Blockchain operations cannot be reversed.

Who finds this handy

People who already hold stablecoins on TON and want to move between kinds without needless loss. For beginners buying their first crypto, the app may be too specialised: get comfortable with a wallet first.

Telegram is a convenient wrapper here: there is no separate site to hunt for, and everything opens in a couple of taps. 📱

Before your first swap

Start with a small amount to see how much goes to fees and what the rate looks like. 🧪

1. Connect only your own wallet and check what action you are signing.
2. Compare the quoted rate with your expectation and count the network fee.
3. Never enter your recovery phrase anywhere, even when asked for verification.
4. Check the bot name: fakes imitating popular services are common.

If you just need to swap one stablecoin for another, the app fits. If you want to deposit for income, study the risks in advance and do not count on guaranteed profit.