Storm Trade DEX on TON

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In this article, we’ll explain the updated liquidity buffering mechanics in Storm Trade that provide stable returns and minimize risks for liquidity providers.

Those who closely follow our announcements know that we’ve already shared plans for a liquidity buffer where the STORM token plays a key role. Now, we’ve made it happen!

Liquidity provision is a popular way to earn in DeFi. Users deposit assets into pools or vaults and earn income through trading fees. However, liquidity providers serve as the counterparty to traders, making them vulnerable to losses, especially during prolonged market trends.

To reduce risks for providers and utilize liquidity more efficiently, Storm Trade has implemented a liquidity buffering mechanism. This buffer minimizes the impact of market trends, ensuring stable yields with smoother price movements.

🪙 How is the SLP token price formed?

The SLP token (Storm Liquidity Provision) is a unique token received by users when they provide liquidity to Storm Trade’s vaults. The price of SLP changes depending on traders’ interactions with the liquidity.

SLP Price = Total Provider Funds in the Vault / Total SLP in Circulation

The vault contract now consists of two parts:

• LP Balance: This holds all liquidity provider funds. Previously, all trader payouts were made from this, causing sharp SLP price fluctuations.

• Buffer: This new component is now used to cover all positive P&L payouts to traders, protecting provider funds in the LP Balance.

💰 What is the Buffer and How Does it Work?

The buffer in Storm Trade is a reserve fund within the liquidity vault designed to prevent sharp SLP price fluctuations.

How It Works:

1. Fund Accumulation:

   • A portion of platform revenues, such as fees, traders’ negative P&L, and funding fees, is directed to the buffer.

   • The buffer builds up reserves, creating a cushion for periods of high volatility.

2. Buffer Utilization:

   • Positive P&L payouts to traders are made from the buffer, not the LP Balance.

   • This reduces the load on the main liquidity pool and stabilizes the SLP token price.

📈 Buffer Efficiency

To understand how the buffer works, let’s analyze Chart 1, which simulates three scenarios:

1. No buffer (solid red line).

2. Buffer with conservative parameters (dashed blue line).

3. Buffer with aggressive risk parameters (dotted line).

1️⃣ No Buffer: Unpredictable Income (Solid Red Line)

In this model, traders’ positive and negative P&L directly affect the liquidity vault (Vault). Profits reduce liquidity, while losses increase it (Chart 1.1).

This system works well during volatile or bearish markets, where traders often incur losses, strengthening the vault. However, during stable or bullish trends, liquidity providers face the following risks:

• Liquidity Reduction: Frequent trader wins shrink the vault.

• Market Dependence: SLP yields drop during prolonged bullish trends.

• Long Break-Even Periods: Providers who enter liquidity during drawdowns must wait longer to recover their investments before earning profits.

• Negative APR: Returns over the last 30 days can become negative.

• Liquidity Outflows: Providers may withdraw funds anticipating further losses.

This model is effective for long-term investors but unpredictable and less attractive for those seeking short-term stable returns.

2️⃣ Conservative Buffer: Stability and Protection (Dashed Blue Line)

In this scenario, 80% of platform revenues from fees and traders’ losses go to the buffer, and 20% are allocated to liquidity providers as income.

This creates a robust reserve to compensate traders’ profits, protecting provider funds during long-term market trends when traders achieve positive P&L (Chart 1.2).

Simulation Results:

• Blue dashed line: The buffer grows consistently for 7 months, building a significant reserve. When market trends shift, the buffer uses its accumulated funds to cover trader payouts, maintaining stable returns for providers.

• Red dashed line: Reflects steady and smooth SLP price growth. Over six months, providers earn about 9% (1.5% monthly) without drawdowns, even in stable markets.

Advantages:

• Full Protection: Trader wins are fully covered by the buffer, eliminating provider losses.

• Buffer Reserves: A larger reserve discourages providers from withdrawing liquidity when the buffer nears depletion.

• Stable Returns: The SLP price grows steadily, even during stable market trends.

• Accessibility: Providers don’t need to time their entry into liquidity.

Limitations:

• Returns may be slightly lower than with more aggressive strategies or no buffer.

3️⃣ Aggressive Buffer: high income with higher risks (Dotted Line)

This model allocates 60% of revenues to the buffer and 40% to providers. While offering higher returns, it risks depleting the buffer faster during extended market trends (Chart 1.3).

Simulation Results:

• Blue dotted line: The buffer grows steadily alongside provider income but risks depletion during prolonged market drawdowns.

• Red dotted line: Shows stable returns of 18% over six months (3% monthly) for providers.

Benefits:

• High returns: LPs earn 36% per annum, significantly higher than the results of the conservative regime.

• Coverage of traders‘ gains: Despite the sharp emptying of the buffer, over the current time horizon it would be sufficient to offset traders’ profits, protecting the main liquidity pool.

Risks:

• Buffer Depletion: With only 60% of revenues allocated, the buffer is more susceptible to depletion if traders consistently profit during prolonged trends.

• Liquidity Pool Drawdowns: If the buffer is depleted, payouts revert to the LP Balance, potentially leading to liquidity outflows as providers wait for the buffer to refill.

🪙 The Role of the STORM token in the buffer system

In future updates, the STORM token will play a key role in balancing the interests of providers, traders, and token holders:

• Dynamic Buffer Management: Excess funds will buy back STORM tokens, while deficits may require token sales to replenish the buffer.

• Deflationary Effect: Purchased STORM tokens will be sent to a reserve, reducing supply and increasing demand.

• Ecosystem Growth: As Storm Trade grows, STORM holders benefit from increased trading volumes and the buffer’s economic model.

🚀 Storm Trade: a new standard for yield

Storm Trade launches an automated buffering system to accumulate funds during low buffer periods and allocate more to providers when reserves are full.

Starting with a conservative mode, Storm Trade will dynamically balance between conservative and aggressive settings to optimize returns.

This approach ensures maximum provider protection and guarantees stable returns. All trader wins are fully covered by the buffer, eliminating temporary losses. Providers earn consistently without drawdowns, and liquidity entry becomes profitable at any time.

With this system, Storm Trade sets a benchmark for reliability and profitability in DeFi on TON. Combined with ChainProof insurance, Storm Trade becomes the most secure platform for passive income in the ecosystem!

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Ever thought trading could be as convenient as on a CEX, without needing to go through verification? If not, it’s time to imagine your boldest dreams, because we’ve made them real!

In this article, we present the biggest Storm Trade protocol update in recent months and show how it makes our platform the fastest DEX on the TON blockchain!

🚀 The evolution of Storm Trade

Our users know that trading is dynamic, and every second can determine a deal’s outcome. Until recently, opening and closing positions on Storm Trade could take time due to the nature of the TON blockchain, sometimes causing prices to slip and disrupt traders’ strategies.

Today, we’re proud to introduce Storm Trade V2, a game-changer.

We've fully redesigned the protocol to offer features that even centralized exchanges don’t always provide: zero slippage, guaranteed SL/TP order execution, and minimal position opening times!

⚡️ How does Storm Trade V2 work?

Storm Trade V2 has a unique integrated solution unmatched by any other DEX on TON, called the Sequencer.

The Sequencer is an innovative order queue management system that eliminates delays and slippage. Now, when you open a position, the execution time and price are fixed almost instantly.

See Figure 1 for more detail.

1. Order time and price lock

Previously, each order was locked only after a blockchain transaction completed, adding extra time. With the new Sequencer, time and price are locked right after signing, significantly speeding up the process.

Check the character in Figure 1 — that’s the user signing a transaction. Once the order is signed, it goes to the Relayer, where its key parameters are instantly locked. The system fixes the price at the moment the order is placed and ensures execution at this price, even if it changes while the transaction completes.

2. Sequential queue execution

From the Relayer, all orders enter the Sequencer, which organizes and processes them sequentially, minimizing slippage risk and stabilizing execution prices. Each order is processed in its turn, preventing random delays and prioritization confusion. Orders are grouped into “batches” every 3 seconds, similar to blockchain blocks, for precise execution.

3. Guaranteed SL/TP execution: protecting against unwanted price deviations

Storm Trade has always aimed to provide users with precise Stop Loss and Take Profit order execution. In the first protocol version, high market volatility often affected order execution, leading to unpleasant surprises.

With the updated protocol, Storm Trade V2 offers users:

• Precise SL/TP Execution — Orders are executed at the closest possible price, even during market swings. Orders enter the Seq_Engine queue and are executed in priority order.

• Transparent Execution — Now you can track your order execution in real-time from the start, giving you full control and insight into every step.

4. Instant order and position opening

In V1, users saw a new position only after it was recorded on the blockchain, which took up to 120 seconds on average. During this time, traders were left in the dark, with blockchain overloads sometimes increasing wait times. Position or order information appeared only after transaction completion, keeping protocol activity “behind the scenes.”

In Storm Trade V2, we’ve changed this display approach so traders can instantly see their positions and orders, regardless of TON network load. Figure 2 shows a comparison between the old and new protocol versions.

⚖️ Risks to keep in mind

We always prioritize the safety and comfort of our users, and as with any major tech upgrade, Storm Trade has some risks to consider:

• Before a user signs a transaction, the asset price may change, affecting the final execution price. Tip: act quickly when signing a transaction to capture the moment.

• Remember that the liquidation price isn’t guaranteed, as it depends on accumulated funding and position collateral, especially in coin-margined pairs. In cases of drastic collateral value changes, like a drop in NOT price, the liquidation price adjusts proportionally.

• Closing positions not yet processed by the blockchain is possible only with limit orders set in advance. Margin top-ups and manual closures become available once the blockchain processes the position-opening transaction. In the next protocol version, we plan a feature enabling traders to close positions quickly.

🔥 What’s next?

A decentralized exchange should be convenient! Our next step is to let users trade on the platform without frequent wallet confirmations.

We’ll introduce gasless orders, allowing trades to process without fees, making the platform experience even smoother.

Additionally, our team is working on interface and user experience improvements. Soon, you’ll see an updated user profile and more intuitive position displays.

🤝 Summary: speed and reliability comparable to centralized exchanges

Storm Trade V2 brings decentralized trading to a new level. With the new Sequencer and improved order processing, users can trust their orders will execute accurately and on time, without significant delays or cancellations.

Storm Trade is a next-generation DEX, offering the convenience and reliability of centralized exchanges while preserving the benefits of decentralization.

Trade directly from Telegram, provide liquidity, join trading tournaments, and enjoy Storm Trade’s commitment to leading-edge technology on the TON blockchain!

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Got questions? Ask them in our vibrant community.

And if you’re already a proud owner of Market Makers NFTs, join our private chat for exclusive discussions.

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Storm Trade is more than just a trading platform. We’re pioneers setting trends in decentralized finance, offering a unique trading experience on the largest derivatives DEX in the TON network.

Our mission is to provide users with cutting-edge solutions that reshape the market, making trading in Telegram convenient and accessible for everyone.

This article outlines our goals and vision for Storm Trade, combining innovative solutions with the reliability of existing tools. Let’s dive in!

⚡️ Storm Trade V2: Enhancing the Trading Experience

Over the past few months, we’ve focused on upgrading our protocol to offer traders even more opportunities for success.

• Adding new pairs and trading instruments, such as commodities (oil, gold) and currencies (Forex), will unlock new markets, allowing for diversified trading strategies.

• With faster position opening times, fixed closing prices, and guaranteed SL/TP order execution, trading will be more precise and efficient.

Future protocol versions (V3 and beyond) will bring one-click trading and gas-free transactions, making trading even more accessible for beginners and positioning Storm Trade as the go-to platform for all.

🏆 SocialFi: Making Trading Fun

With copytrading, you can not only trade but also follow top traders, copying their successful strategies.

Leaderboards will encourage competition, while squad features allow traders to team up and trade together.

And this is just the beginning—a system of seasonal airdrops and unique rewards will keep the platform exciting, turning every trading session into an adventure.

📈 New Trading Products

Storm Trade’s roadmap includes the introduction of leveraged prediction markets and options, expanding horizons for traders.

🔮 Leveraged Prediction Markets

Traders can bet on the outcomes of various events, including economic indicators and sports results, with the option to use leverage. This will attract not just crypto traders but also those interested in speculating on real-world events.

🎟️ Options

Introducing options will enable more flexible and advanced strategies, providing tools for hedging and volatility management, which will appeal to experienced traders.

🐻 Growing the Community Collection

Market Makers is Storm Trade’s utility NFT collection, designed to reward user activity and loyalty.

The collection is part of our long-term strategy, distributed for active participation on the platform and in events. We’re planning new utilities and benefits for NFT holders.

As new products are launched, NFT holders will gain perks like trading fee discounts, reward farming multipliers, and other surprises.

🚀 Spot Trading: Faster, Simpler, Better

Our next step will be launching spot markets.

🧮 Margin Spot Trading

Margin trading on the Storm Trade spot market will allow you to open larger positions using borrowed funds (leverage), increasing potential profits without committing all your capital.

🔑 Spot Markets with Limit Orders: Control Every Trade

Limit orders will let traders control the prices they want to buy or sell assets at, allowing for precise management of trading strategies.

Storm Trade will provide tools to automate complex strategies like scalping and grid orders, making them more efficient.

🪄 AI Trading: Artificial Intelligence in Action

We began experimenting with AI during a hackathon, implementing AI solutions to help find optimal entry and exit points, predict market movements, and minimize risks.

We believe the future of trading lies with AI, and we plan to continue developing AI-powered solutions for personalized trading recommendations and automatic strategy optimization.

👛 Built-In Non-Custodial Wallet

A built-in non-custodial wallet will enable seamless trading, allowing users to manage assets directly on the platform without needing external apps.

The wallet will also support gas-free transactions, reducing costs for users. With a non-custodial structure, users will maintain full control of their assets, ensuring greater security.

🚀 Storm Protocol: The Engine of the Ecosystem

Developing Storm Protocol will enable us to provide liquidity to other platforms, creating new earning opportunities. This is not just a way to increase revenue through fees but also a crucial step in strengthening the $STORM token economy.

Partner platforms using Storm Protocol liquidity will help increase token buybacks and revenue distribution among token holders, making the token more attractive and stable.

⚙️ Time to Build!

Now is the perfect time for growth in the TON ecosystem, and Storm Trade is seizing the moment to shape the future of decentralized finance. We’re not just growing for the sake of growth—we’re preparing the platform to lead in DeFi on TON.

Storm Trade is already the leading derivatives DEX in the network, and every step is aimed at creating the best conditions for traders with state-of-the-art tools.

We’re building a platform ready to scale when the TON ecosystem reaches mass adoption, shaping the future of trading with you today!

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Got questions? Ask them in our vibrant community.

And if you’re already a proud owner of Market Makers NFTs, join our private chat for exclusive discussions.

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Storm Trade is proud to announce the completion of the Beta Season rewards program, a significant milestone in the platform's evolution. Over 60,000 participants took part in rewards mining, earning Reward Points (RP) for their activity on the platform.

🚀 Key Highlights of the Beta Season:

• Trading volume during the Beta Season surpassed $1.5 billion, with a daily peak of $40 million.

• Liquidity providers earned impressive returns: 20% in USDT, 13% in TON, and 7% in NOT on their deposits since the launch of the liquidity pools. This is in addition to the RP rewards.

• We distributed over 65 million RP to more than 60,000 active users on the platform.

• STORM vouchers and tokens were well-deserved rewards for miners who actively participated throughout the season.

This season was a crucial step in helping us grow stronger, and as we move past the Beta version, we are thrilled to announce the launch of the Second Season of Rewards!

💎 Second Season: New Opportunities and Rewards

With the start of the Second Season, users can enjoy exciting new mechanics and rewards, making participation even more engaging and profitable. For instance, now, for every $1,000 in trading volume, you can earn 100 RP, and for every $1,000 in liquidity, you’ll receive an additional 50 RP.

We sincerely thank each of you for being a part of the Beta Season. Your activity and support have made Storm Trade a leader in the futures DEX market on the TON network. We're not stopping here, and we eagerly await your participation in the Second Season, which has already begun. Learn more about the new opportunities and rewards here.

Join us in the new season and earn even more rewards with Storm Trade!

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Got questions? Ask them in our vibrant community.

And if you’re already a proud owner of Market Makers NFTs, join our private chat for exclusive discussions.

Website | News | Blog | Docs