# Torch Finance

> Liquid Stables Hub on TON

Torch Finance is a decentralized finance company operating a stable swap protocol on the TON blockchain. It offers low-slippage stablecoin trading and a yield-generating stablecoin for Telegram and TON users.

Torch Finance is a decentralized finance company that builds stable swap infrastructure on the TON blockchain. Its core offering is a stable swap protocol for trading stablecoins, liquid staking tokens, and wrapped assets with low slippage, aimed at users and developers seeking efficient exchange within the TON ecosystem. The platform positions itself as a partner within the broader TON DeFi landscape, extending liquidity and interoperability across the network.

The protocol addresses limited native yield and fragmented liquidity on TON by pairing its swap engine with cross-chain yield aggregation. Through Telegram USD, a yield-generating stablecoin, users deposit reserve-backed stablecoins to access yield strategies sourced from decentralized finance protocols across multiple blockchains, all managed through a Telegram-based interface. This design targets everyday Telegram users who may lack experience with wallets or DeFi mechanics, alongside more experienced participants.

Torch Finance is developing a payments feature intended to let its stablecoin be used for transfers and everyday transactions within Telegram. The protocol also provides developer tooling for integrating its swap and stablecoin functionality into other applications. It is used by retail users seeking stablecoin yield, liquidity providers, and developers building within the TON and Telegram ecosystem.

- Type: Company
- Sector: DeFi
- Status: Active
- Founded: 2024-01-01
- Profile: https://thegrid.id/profiles/torch_finance

## Products

- [Torch DEX](https://thegrid.id/profiles/torch_finance): Torch DEX is a decentralized exchange for stablecoins and liquid staking tokens on TON. It uses a StableSwap-based automated market maker within a factory-vault-pool architecture, allowing multiple pool types to share liquidity and enabling low-slippage trades between stable assets and yield-bearing tokens. Users can trade, deposit liquidity, and withdraw through the app or a Telegram-based mini app. (Decentralised Exchange, Live, Main Product)
- [tgUSD Staking](https://thegrid.id/profiles/torch_finance): tgUSD Staking is a liquid staking platform on TON that lets users mint and stake the tgUSD stablecoin to receive stgUSD, an appreciation token that accrues yield. The system relies on smart contracts that mint tgUSD against deposited collateral and a staking contract that generates yield through cross-chain DeFi strategies while keeping the resulting token liquid. Holders can trade or deploy stgUSD across DeFi applications while their underlying deposits continue earning yield, accessible through a web app or a Telegram mini app. (Liquid Staking, Live)

## Assets

- [Telegram USD (tgUSD)](https://thegrid.id/profiles/torch_finance): tgUSD is a USD-pegged stablecoin issued by Torch Finance and backed one-to-one by USDT. It is minted when users deposit USDT into the protocol's Engine contract and can be staked to earn yield aggregated from DeFi strategies across chains such as Ethereum, Solana, and Aptos. Deposited collateral is bridged externally to generate returns, which flow back to holders through the staking mechanism. (Stablecoin)
- [Staked Telegram USD (stgUSD)](https://thegrid.id/profiles/torch_finance): stgUSD is a liquid staking token representing staked tgUSD on Torch Finance. It is minted when users stake tgUSD into the protocol's Staking contract, with its value appreciating over a seven-day vesting period as cross-chain DeFi yield accrues, while remaining tradable on TON DEXs. This design lets holders capture yield without giving up liquidity of their staked position. (Liquid Staking Tokens (LSTs))

## Links

- [Main](https://torch.finance)
- [Documentation](https://doc.torch.finance)
- [Terms of Service](https://doc.torch.finance/dex/terms-of-use)
- [Media Kit/branding](https://doc.torch.finance/dex/other/brand-kit)
- [Privacy policy](https://doc.torch.finance/telegram-usd/legal/privacy-policy)
- [Twitter / X](https://x.com/TorchTon)
- [Telegram](https://t.me/torch_ton)
- [GitHub](https://github.com/torch-core)

## Legal

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- [Data Licensing & Disclaimers](https://about.thegrid.id/legal/data-licensing-and-disclaimers): Licensing models and disclaimers
- [Open Data (ODbL)](https://about.thegrid.id/legal/open-data): Open Database License terms and scope for The Grid's open data service.
- [Attribution Guidelines](https://about.thegrid.id/legal/open-data-attribution-guidelines): How to attribute The Grid's data when using the open data service.
- [Web Services Terms](https://about.thegrid.id/legal/web-services-terms): commercial Terms for using data services.
- [All Legal Documents](https://about.thegrid.id/legal): Full index of terms, policies, and disclosures

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- [TGS Field Descriptions](https://github.com/The-Grid-Data/workspace-public/blob/main/references/tgs-field-descriptions.md): Schema field definitions for The Grid's data model
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- [Product Type Definitions](https://github.com/The-Grid-Data/workspace-public/blob/main/references/product-type-definitions.md): Definitions for each product type
- [Product Type Classification](https://github.com/The-Grid-Data/workspace-public/blob/main/references/product-type-classification.md): Guide for classifying products into types
- [Grid MCP Guide](https://github.com/The-Grid-Data/workspace-public/blob/main/grid-search/skills/grid-query/references/grid-mcp-guide.md): How to query The Grid programmatically via MCP