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NODE/03 · Term

TONCO

TON DEX with concentrated liquidity (CL): LPs deploy capital into narrow price ranges, boosting capital efficiency by 5-50x versus a classic AMM.

Aliases: tonco dex, tonco amm

TONCO is a TON-native DEX implementing the concentrated liquidity model in the spirit of Uniswap V3. Unlike classic AMMs (STON.fi v1, DeDust), where LPs spread capital across the entire 0 → ∞ price curve, TONCO places liquidity into a narrow range (e.g. $1.99-$2.01 for USDT/USDC) and only that range earns fees.

What it gets you

Capital efficiency jumps 5-50x: in a narrow range, $1000 of liquidity earns the same fees as $10-50K in a classic AMM. This attracts professional market-makers and tightens spreads on popular pairs.

What you pay for it

  • Active management: if price exits the range, the position stops earning and needs to be rebalanced (close, reopen at the current range).
  • Amplified impermanent loss in narrow ranges: volatility hurts harder than wide LP positions.
  • NFT positions instead of fungible LP tokens: each position is unique (its own tick pair), which complicates secondary markets and staking-based farming.

When TONCO wins

  • Stable-stable pairs (USDT/USDC) with a narrow range around the peg — minimal IL, maximal fee yield.
  • Active strategies by market-makers who can recreate positions whenever price moves out of range.

For passive “deposit and forget” liquidity, a classic AMM (STON.fi, DeDust) is simpler. Full breakdown — TONCO: concentrated liquidity on TON.

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