# Stablecoins

Stablecoins like USDT, USDe (plus its rebasing asset tsUSDe), and [tgUSD](https://doc.torch.finance/telegram-usd) are a natural fit for TONCO’s concentrated liquidity model, where liquidity is deployed in specific [price ranges](/price-ranges/meaning-of-ranges.md) rather than spread from 0 to ∞. This model unlocks a new level of **efficiency** and **profitability** for both traders and liquidity providers.

## **Why TONCO is perfect for stable pairs**

[TONCO](https://app.tonco.io/) is the first concentrated liquidity DEX on TON, offering clear advantages over traditional V2 AMMs. Stablecoin pairs, which typically trade within tight price ranges around $1, benefit the most from concentrated liquidity model:

* **Ultra-low slippage**, even at high trade volumes
* **Tighter spreads and better execution** for swappers
* **Higher capital efficiency**, since liquidity is only placed where trades actually occur
* **Stronger fee APRs** for LPs, as more trades are concentrated within narrow ranges

{% hint style="info" %}
**Example**: In the tgUSD/USDT pool, liquidity can be concentrated in the price range of 0.999–1.001. This enables up to **2,000x higher capital efficiency** compared to traditional V2 DEXs, where liquidity is spread across a wide, mostly unused price spectrum.
{% endhint %}

With TONCO, LPs can set liquidity around [narrow ranges ](/price-ranges/range-presets.md#narrow-ranges)like 0.995–1.005 or even tighter, depending on the expected volatility of the stable pair. This structure:

* Absorbs larger trades without causing price impact
* Enables high-frequency trading strategies
* Creates reliable, predictable execution for aggregators and bridges

## **Examples of liquidity strategies**

### **USDT/tgUSD (stable-stable pair)**

Both tokens are dollar-pegged, meaning their prices hover close to $1. LPs can confidently provide liquidity in narrow range, capturing more trades and earning higher fees.

• **Basic strategy**: 0.997 – 1.003 (covers mild fluctuations in peg, low maintenance)

<figure><img src="/files/HbR8UPAz3GYmHEedPuyF" alt="" width="563"><figcaption><p>Basic strategy for stable-stable pair on TONCO DEX</p></figcaption></figure>

• **Advanced split**: Tight range at 0.999 – 1.001 + backup at 0.995 – 1.005 (maximizes fee capture while reducing risk of going out of range)

This split strategy allows LPs to:

* Maximize yield from tightly packed trade volume
* Maintain uptime even during brief peg shifts
* Reduce idle capital and improve return on liquidity

<figure><img src="/files/8lDHHtt3eT6oDmuMUXnS" alt="" width="563"><figcaption><p>Advanced split for stable-stable pair on TONCO DEX</p></figcaption></figure>

### **USDe/tsUSDe (rebasing stable-yield pair)**

Unlike traditional stable pairs, tsUSDe is a rebasing token that gradually increases in value relative to USDe as it accrues yield.

• **Split strategy**: 0.995 – 1.005 (short-term) and 1.005 – 1.03 (longer-term exposure to tsUSDe yield growth)

<figure><img src="/files/SYo7smVHkv269oouANfb" alt="" width="563"><figcaption><p>Split strategy for rebasing stable-yield pair on TONCO DEX</p></figcaption></figure>

This approach allows LPs to:

* Capture fee volume while the pair is near parity
* Earn yield passively as tsUSDe appreciates
* Avoid frequent repositioning thanks to the slow-moving upward peg

## Who benefits from stablecoin liquidity on TONCO?

* **Traders**: Enjoy better execution, lower slippage, and tighter spreads
* **Cross-chain bridges**: Achieve high-volume, low-impact transfers across chains
* **Retail and institutional LPs**: Earn consistent income from fees with less risk
* **Wallets, bots, aggregators**: Tap into deep liquidity and predictable routing

***

<mark style="background-color:yellow;">Stablecoins power payments, savings, transfers, and cross-chain operations.</mark>

For these systems to scale efficiently, they need precision infrastructure. That’s exactly what TONCO delivers:

* High liquidity density with low slippage
* Minimal idle capital through range-based provisioning
* Optimized yield, execution, and LP profitability


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