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  • Overview
    • What is TONCO
    • Bringing Concentrated Liquidity to TON
    • Team
    • Social Media
    • Audits
    • Roadmap
    • Brand Kit
  • Understanding Concentrated Liquidity
    • Glossary
    • Fees
    • NFT LP Tokens
    • Farming
    • Farming FAQ
  • Price Ranges
    • Meaning of Ranges
    • Range Presets
    • Advanced Range Presets
    • Price Moves in Ranges
    • Impermanent Loss
    • Choosing a Strategy
    • Liquidity Scenarios
  • Benefits of Concentrated Liquidity
    • Perks for Liquidity Providers
    • Perks for Traders
    • Perks for Projects
    • Liquid Staking Tokens (LST)
  • Concentrated Liquidity Playbook
    • Basic Strategies
    • Hedging with EVAA (Lending)
    • Hedging with Storm Trade (Perp DEX)
    • Hedging with Tradoor (Perpetual futures)
  • Liquidity Providing Tutorial
    • Adding Liquidity
    • Managing a Position
    • Liquidity Migration Guide
    • How APR is Сalculated
    • LPs FAQ
  • TONCO Points Program
    • Introduction
    • How to Earn Points
  • Technical Reference
    • 📇Indexer
    • GraphQL Schema
    • Integration FAQ
    • Core Logic
      • 🧺Pool overview
      • Swap calculation
      • 💰Liquidity and positions
      • 📏Ticks
      • 🏦Reserves
    • Contracts
      • 📜Scenarios
      • Pool
      • Router
      • Position NFT
      • Account
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On this page
  • 1. APR-focused strategy
  • 2. Range order strategy (buy/sell)
  • 3. Dollar Cost Average (buy/sell)
  • 4. Covered call (focus on sell)
  1. Concentrated Liquidity Playbook

Basic Strategies

Concentrated liquidity strategies you can implement for consistent yield

PreviousLiquid Staking Tokens (LST)NextHedging with EVAA (Lending)

Last updated 3 months ago

TONCO’s concentrated liquidity is set to transform the DEX landscape on TON, offering new liquidity pools. If you’re new to this liquidity model, here are some basic strategies to help you understand how it works.

You can use ready-made on TONCO to apply these strategies

1. APR-focused strategy

The key to this strategy is adjusting your position regularly to stay within the most profitable . Narrower ranges lead to higher APR, as liquidity is used more effectively:

2. Range order strategy (buy/sell)

A range order is like setting a limit order but with an added advantage—you earn fees instead of paying them. This strategy works well with volatile/stable asset pairs (like TON/USDT).

When you want to sell, input single-sided liquidity in the volatile asset (TON). If the price rises above your set range, your assets will convert to the stable asset (USDT), and you can exit (close your position):

For buying, reverse the process: use single-sided liquidity in the stable asset, and set your buying range. When the price drops below your range, your assets convert to the volatile asset (TON), allowing you to exit:

3. Dollar Cost Average (buy/sell)

The DCA strategy is similar to range orders but operates within a wider range. It’s suitable for all market conditions—bullish, bearish, or neutral. This strategy allowing you to buy more assets as prices dip or sell as prices rise, all while earning fees.

Assuming the price of TON is 6, you might create a TON/USDT pool with a range of 5.5 to 8.5 to sell TON as the price moves up:

Alternatively, to buy TON you might create a pool with a range shifted in the other direction to buy TON as the price moves down:

4. Covered call (focus on sell)

The Covered call strategy in TONCO resembles options trading, where you “sell” the underlying asset at a predetermined price. To use this strategy, place single-sided liquidity in a volatile/stable pool at the price you want to sell:

It’s crucial to burn the position (withdraw liquidity) when the set price is reached, otherwise, it can go backward

Focus on high-performing pools without considering asset appreciation. Keep track of APR, fees, trading volume, TVL, and other stats on the dedicated APR graph for each pool: :

This single-tick range eliminates , and the fees you earn are similar to the premium in options trading. It’s a great way to earn fees while setting your exit price for the underlying asset.

app.tonco.io/#/explore
impermanent loss
advanced presets
price range
Narrow range on TONCO
TON/USDT Max Apr Graph
Single-sided liquidity on TONCO for selling volatile asset
Single-sided liquidity on TONCO for buying volatile asset
Dollar Cost Averaging (DCA) strategy on TONCO (sell TON)
Dollar Cost Averaging (DCA) strategy on TONCO (buy TON)
Covered call strategy on TONCO