This material is based on a community discussion in which one participant decided to test an expanded approach to the DeFi solution offered by YieldFort. At its core, the strategy combines an Iron Condor options structure on BTC and borrowed funds in TON, potentially offering high returns. Let’s break it down step by step.

What Is YieldFort. YieldFort is a mini application (dApp) on the TON blockchain that allows you to set up an Iron Condor options strategy at the 10-delta with expirations of 1–2 weeks. Technically:

The options portion is assembled by a smart contract through centralized exchanges Deribit/Thalex.

User funds and all settlements are handled in a smart contract on TON. You can verify the contract’s operation via tonscan by finding the YieldFort master contract.

How the “10-delta Iron Condor” Works. An Iron Condor generates a profit if BTC remains within a certain price range (±8–10% from the current level) over the course of a week. If the price moves beyond this range, the loss is limited (and known in advance). Historically, markets trade in ranges around 85% of the time, making Iron Condors a popular options strategy for collecting premium from time decay. In the context of YieldFort, the return of 3–6% in the base asset (BTC-equivalent in TON) per week is significantly higher than many classic DeFi or staking strategies.

The User’s Experimental Strategy

Step 1: DCA in BTC The user buys a small amount of BTC daily (for example, 30 USDT worth), aiming to smooth out volatility rather than trying to “time” the market. Over a year, the total could reach around 10,950 USDT, with each small purchase made at different prices—providing a more averaged entry.

Step 2: Collateralizing BTC and Borrowing TON The accumulated BTC is used as collateral (maintaining an LTV no higher than 50%). In return, the user borrows TON, carefully minimizing interest expenses (APR). A centralized platform (OKX) was chosen for the loan with a rate of about 2.55% APR (based on the previous week). Decentralized alternatives, such as Evaa Finance, were also considered but have higher rates—though with higher liquidation thresholds. In the end, OKX was preferred for its lower rate and simpler collateral management. As an additional hedge, some portion of stablecoins (approximately a 1:3 ratio to BTC) is used to safeguard against a sharp increase in TON’s price relative to BTC, which could require adding collateral quickly.

Step 3: Investing Borrowed TON into YieldFort The borrowed TON is put into an options strategy (an Iron Condor on BTC). In previous weeks, this produced a weekly return of around 3–4% (before fees). After paying the loan interest, the net profit averages about 3% weekly, confirming the viability of this approach under current market conditions. “The loan’s APR is ~2.55% annually, while the YieldFort strategy yields me 3–6% per week in the base asset—so I’m in profit. Plus, I don’t have to sell my BTC and can potentially gain ‘free’ TON if it goes up in value.”

Why It May Be Interesting Combining a Stable Asset (BTC) with a Growing Altcoin (TON)

The user continues accumulating BTC as a long-term base asset and only borrows TON for additional DeFi returns.

High Weekly Yield: Typical staking rates for TON or stablecoins in AAVE, ARB, etc., range from 3% to 10% annually. Here, in a favorable scenario, it can be 3–6% per week.

Limited Risk in the Options Structure: A 10-delta Iron Condor has a predefined maximum loss and a high probability of staying within the “corridor” without major price moves.

DCA Smooths Out Volatility: Gradual BTC purchases reduce dependence on market timing and create a more stable base for collateral.

Risks and Nuances

TON/BTC Volatility: If TON spikes sharply relative to BTC, you may need to quickly add collateral to avoid liquidation.

Interest Rate on the Loan: The rate can fluctuate (both on centralized exchanges and in DeFi protocols). If it rises, your strategy’s margin may diminish.

Success of the Options Strategy: Sometimes the Iron Condor can end up in a loss if BTC’s price surges or drops sharply within a week. In such cases, weekly returns might decrease (or even go negative).

Technical and Infrastructure Risks: Although the YieldFort smart contract is verifiable, any DeFi system can still experience failures. Centralized exchanges carry the risk of fund freezes or other unforeseen events.

Small Transaction Sizes: For smaller sums, fees and transaction costs may eat into profits, while the risks remain comparable.

Conclusions

The experimental setup — BTC → Collateral → TON Loan → YieldFort (Iron Condor) — can potentially yield significantly higher returns than classic staking or farming.

Meanwhile:

BTC stays in the portfolio, which is valuable for long-term investors. Through the Iron Condor and rate arbitrage, the user profits from market volatility. The risks are, of course, higher: fluctuations in TON/BTC and missed Iron Condor expirations can reduce overall gains. Overall, the strategy has demonstrated its effectiveness over a short timeframe (about a week). However, the long-term result will depend on market stability, interest rate dynamics, and the ultimate performance of the chosen options expirations.

If you find such approaches intriguing, it’s wise to carefully assess the risks, start with small amounts, and closely monitor liquidation thresholds. Even so, this is a clear example of how DeFi on TON, combined with options instruments and DCA, can serve as a more “exciting” alternative to straightforward staking—with the potential for significantly higher returns.