Skip to main content
T TON Adoption
← Glossary
NODE/03 · Term

Lending on TON

On-chain credit markets on the TON network. Users deposit assets as collateral and borrow TON, USDT, or LSTs against them. The leading protocols are EVAA and Storm Trade.

Aliases: ton lending, ton credit protocols

Lending on TON is the DeFi segment where users lend assets for yield or borrow against collateral. The sector is younger and tighter than Aave/Compound on Ethereum, but by 2024-2026 it has built a stable core of protocols.

What TON protocols offer

The baseline model is overcollateralized lending, Aave-style:

  1. Deposit. Users supply an asset into a protocol pool and earn interest from borrowers (often plus protocol-token emissions).
  2. Collateral. The same deposit can be used as collateral for a loan.
  3. Borrow. Users draw out another asset up to a loan-to-value (LTV) limit on their collateral.
  4. Liquidation. If collateral value falls or debt rises past the limit, liquidators repay part of the debt and seize collateral at a discount.

Borrow and deposit rates are set by a utilization-rate curve — the higher the share of borrowed funds in a pool, the more expensive it is for borrowers and the more attractive for depositors.

Supported assets

Unlike Ethereum protocols with dozens of assets, TON lending focuses on a narrow set:

  • TON — the base network asset, the most liquid.
  • USDT-jetton — native USDT on TON, the primary dollar collateral.
  • LSTs (tsTON, stTON, hTON) — particularly valuable as collateral because they keep earning staking yield while securing a loan.
  • Occasionally a few large ecosystem jettons.

The narrow asset list reflects TON DeFi’s relative youth and a deliberate focus on keeping risk under control.

Main protocols

  • EVAA — a general-purpose money market in the Aave style. Variable rates, multi-asset positions, oriented toward retail and longer-duration borrowing.
  • Storm Trade — specialized in leverage for perpetuals, but includes a lending component (borrows against TON and USDT).

See the dedicated entries for each.

Typical use cases

  • Liquid staking + leverage. Deposit tsTON, borrow TON, restake. A looped position that amplifies staking yield at the cost of liquidation risk if borrow rates spike.
  • Dollar liquidity against TON. Holders who do not want to sell TON but need USDT can borrow against TON collateral, keeping price exposure while accessing stables.
  • Shorting via borrow. Borrow an asset, sell, wait for a fall, repay cheaper.

Risks

  • Liquidation. A sharp drop in collateral price (or a strong USDT peg movement) can trigger liquidation with capital loss. Healthy LTV margins are essential.
  • Smart-contract risk. TON lending protocols are younger than their Ethereum counterparts and have weathered fewer real market stress events.
  • Oracle risk. Collateral pricing comes from off-chain oracles. Oracle manipulation is a non-trivial but real attack vector.
  • Asset concentration. Because the main collateral assets are TON and its LSTs, a TON-specific shock propagates through the whole system at once.

Lending on TON is a foundational DeFi primitive, but it requires more careful attention to LTV and oracle risk than the mature Aave/Compound markets demand.

Related terms