As a seasoned analyst with a knack for spotting promising trends in the blockchain industry, I find myself intrigued by TON Foundation’s assertion that 2023 will be the year of DeFi on their network. Having witnessed the growth and transformation of decentralized finance over the years, I can confidently say that this is a significant step forward for TON.
2022 is set to be the year of decentralized finance (DeFi) on The Open Network (TON) blockchain, as declared by the TON Foundation. To kick things off, decentralized exchange Curve Finance has gotten involved. A competition between DeFi teams has been launched by both TON and Curve Finance, encouraging the development of stable asset swaps utilizing Curve Finance’s unique technology.
Getting the pieces in place for DeFi
TON is moving forward with what it terms as the initial set of DeFi fundamental components, as mentioned in a blog post by TON’s DeFi lead, Vlad Degen. The focus here includes lending platforms, liquidity staking, and Constant Product Market Maker protocols. In the coming stages, we see the development of secondary-level projects such as launchpads, options trading, and derivative markets.
“Upcoming plans include bridges between TON and other networks, such as BTC and EVM, which will allow the addition of new assets, including major stablecoins.”
Through our partnership with Curve Finance established in September, a contest was organized to create Curve’s Continuous Functional Market Maker (CFMM) technology. This innovative technology aims to deliver less market volatility and smaller discrepancies between the expected and actual transaction price (slippage).
Using CFMM technology for projects necessitates obtaining a license, making the possibility of performing swaps on TON using this technology noteworthy.
Winners get liquidity, incentives and integration
Originally, there were 70 teams who applied for the contest, but only 10 made it through to the selection process. Out of those 10, 5 managed to fulfill their CFMM protocol requirements and advanced to the final stage. In the end, two teams – Torch Finance and Crouton Finance – emerged victorious. As a reward for winning, each team will receive $150,000 from TON for audits, as well as an initial allocation of liquidity in newly established stablecoin pools and incentives to utilize these pools.
The integration of liquidity sources from Torch Finance and Crouton Finance is set for the CrossCurve cross-chain trading and yield system, which is developed by Curve founder Michael Egorov. This integration aims to establish a harmonious liquidity marketplace by merging current Curve pools, thereby creating a unified platform.
Seven venture capital groups have indicated their intention (soft commitment) to contribute approximately $2.3 million each towards investments in both Torch Finance and Crouton Finance.
Following the launch, TON and Curve Finance plan to provide incentives worth $500,000 to encourage cross-chain compatibility for stablecoin swaps between the TON ecosystem and Ethereum Virtual Machine (EVM) networks.
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2024-11-05 01:16