In DeFi, finding stable, sustainable yields can be challenging. That's why we're excited about our integration with Storm Trade, TON's largest perpetual trading platform. Their vaults have consistently generated impressive returns – between 10-25% APR – through trading fees and protocol rewards. Now, through FIVA, you can access these yields in new ways.
Imagine getting fixed 10-25% yields on your TON, USDT, or NOT holdings, protected from market volatility. Or if you're already a Storm LP, imagine having more options to manage and optimize your position. That's what we're bringing to the TON ecosystem.
In this article, we'll explore:
Where these attractive Storm yields come from
How FIVA helps optimize these yields through multiple strategies
Important risks to consider and how we protect against them
Let's dive in and understand how you can make the most of these opportunities – whether you're new to Storm or already providing liquidity there.
This integration with Storm Trade represents the next step in Phase 2 of our controlled mainnet rollout strategy. As we detailed in our previous announcement, we're carefully introducing new markets and expanding access to ensure stability and optimal performance. The addition of Storm's vaults further enriches the yield opportunities available through FIVA.
Storm's yield generation is based on a sophisticated trading ecosystem where liquidity providers earn from multiple revenue streams. When you provide liquidity to Storm vaults, your returns come from following sources:
Trading activities form the backbone of yields, with providers earning 70% of all trading fees and funding rates. Every time traders open positions, close them, or pay funding rates, a significant portion flows to the liquidity providers. Additionally, when traders experience losses (negative P&L), these funds are directed to the liquidity pools.
Liquidation events create another revenue stream, with 35% of liquidation penalties being distributed to liquidity providers. This helps maintain healthy market dynamics while rewarding those who provide capital to the system.
Protocol rewards through RP mining add an extra layer of yield, incentivizing long-term liquidity provision and protocol participation.
Historical data shows this model's sustainability: between 2022-2024, Storm traders collectively lost over $10 million (about 5% of position collateral), demonstrating the statistical advantage liquidity providers have over time. While there can be periods where traders are profitable, the long-term trend favors the liquidity providers.
When you invest in Storm vaults, your returns fluctuate based on trading activity and market conditions. FIVA transforms this variable yield into predictable returns through yield tokenization. For a detailed explanation of how PT and YT tokens work, check out our Understanding FIVA Basics article.
With PT tokens, you can lock in a fixed rate on your Storm vault position based on current market expectations. The fixed yield through PT tokens can vary based on market demand and expectations of future Storm performance and rewards. When there's high demand for YT tokens (for farming both Storm and FIVA rewards), PT yields might exceed Storm's base rate.
For example:
Deposit 10,000 USDT at a fixed rate for a defined period
Receive guaranteed returns regardless of market conditions at maturity
Protection from rate drops while securing current yields
YT tokens offer leveraged exposure to Storm's performance and earn Storm rewards:
Up to 100x leverage for yield and points farming
Leverage varies based on market conditions and current yield rates
No liquidation risk – losses capped at initial investment
For example, with 65x leverage (a possible market scenario):
Invest $1,000 to capture yield and farm points typically generated by $65,000
Accumulate Storm RP up to 65x faster
Significant potential upside from yield increases and point system rewards
If you're a significant SLP holder needing liquidity without exiting your Storm position, FIVA's yield monetization helps:
Split your SLP tokens into PT and YT components
Sell the YT tokens for instant liquidity
Maintain your principal through PT tokens
At maturity, your PT tokens convert back to the original SLP amount
For example, if you hold 100,000 USDT worth of SLP tokens generating 20% APY, instead of waiting a full year to receive your 20,000 USDT in yields, you can access these returns immediately through this strategy.
Put your SLP tokens to work in FIVA's liquidity pools to earn:
Trading fees from all PT and YT token swaps
FIVA points with special multipliers
Original Storm vault returns
Protection from impermanent loss at maturity
Unlike traditional DEX pools that require token pairs, FIVA's pools only need your SLP tokens. For example, by providing liquidity with 10,000 USDT worth of SLP tokens, you maintain your Storm vault returns while adding trading fees and boosted rewards from both protocols.
For detailed strategies and more examples, check out our Advanced Yield Strategies guide.
Every DeFi opportunity comes with risks. Let's explore what you should consider when using FIVA with Storm vaults.
FIVA operates through smart contracts that are professionally audited and extensively tested. While we follow industry best practices, smart contract risk can never be completely eliminated.
FIVA integrates with Pyth for reliable price data, using multiple data sources to maintain stable and accurate price feeds.
When you use FIVA with Storm vaults, you're indirectly connected to Storm's ecosystem. If Storm encounters difficulties, their SLP tokens might lose value. However, FIVA's smart contracts will still honor your yield payments in SLP tokens as agreed. Think of it like having insurance on a volatile asset – while the asset's value might change, your contract terms remain secure.
This is particularly interesting. Storm's vaults can experience temporary losses when traders are profitable. While historical data shows that Storm traders collectively lost over $10 million (about 5% of position collateral) between 2022-2024, we need to understand how FIVA protects PT holders from potential vault losses.
When you hold PT tokens, you're signing up for a fixed yield. Any vault losses could theoretically affect this fixed return - but FIVA and Storm have implemented multiple layers of protection to prevent this:
Storm's Buffer System acts like a shock absorber for the vaults. This buffer accumulates funds from trading fees and traders' losses, creating a reserve that pays out traders' profits instead of drawing from the main vault. This innovative system helps maintain stable returns by smoothing out performance fluctuations. You can learn more about the mechanics in Storm's detailed article.
FIVA's Protection Framework uses data-driven safety systems combining quantitative analysis and econometric models. We studied Storm's historical trading patterns to understand exactly how much safety reserve we need to protect fixed yields. This analysis helps us set smart pool limits and maintain an insurance fund sized just right to cover potential losses. While the math behind it gets complex (involving advanced models you might see in traditional finance), what matters is that your fixed yields have multiple layers of protection. Curious about the detailed calculations and models? We break it all down in this article.
Future STORM Token Integration will provide additional security layers for vault protection. This future mechanism will provide yet another safeguard for vault stability.
While these three layers of protection make vault losses highly unlikely, it's important to understand this risk exists. Remember to do your own research and consider your risk tolerance.
Hold TON, USDT, or NOT? Start earning competitive yields through Storm and FIVA today:
Lock in predictable returns with PT tokens
Farm Storm rewards with leveraged YT positions
Earn multiple revenue streams through liquidity provision
Visit FIVA's app or Telegram Mini App to explore Storm's vault opportunities.
Want to learn more? Check our yield optimization guides or visit Storm Trade app to explore their vault opportunities. Follow Storm Trade on Twitter and Telegram to stay updated on their latest developments.