Maker

Constant

DeFi

Nov. 5, 2024, 5:00 pm: This article has been updated to reflect the fact that the parties have a collaboration, not a partnership.
The year of decentralized finance (DeFi) on The Open Network (TON) blockchain will be 2025, developer TON Foundation declared. Decentralized exchange Curve Finance joined in to start the process, and TON and Curve held a competition for DeFi teams to develop stable asset swaps using Curve Finance’s proprietary technology.
<h2 id="getting-the-pieces-in-place-for-defi">Getting the pieces in place for DeFi</h2>
TON is completing what it calls the first tier of DeFi primitives, it announced in a blog <a data-ct-non-breakable="null" href="https://blog.ton.org/infrastructures-for-stable-assets-with-curve" rel="null" target="null" text="null" title="null">authored</a> by TON DeFi lead Vlad Degen. The author had in mind lending solutions, liquidity staking and Constant Product Market Maker protocols. Emerging second-tier projects include launchpads, options and derivatives, and:
<blockquote>
 “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.”
</blockquote>
As part of the collaboration with Curve Finance <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ton-foundation-curve-finance-stablecoin-swap-collaboration" rel="null" target="null" text="null" title="https://cointelegraph.com/news/ton-foundation-curve-finance-stablecoin-swap-collaboration">finalized in September</a>, a competition was held to develop Curve’s Constant Functional Market Maker (CFMM). This technology promises reduced price volatility and lower slippage.
Projects require a license to use CFMM technology, so the opportunity to make swaps on TON using the technology was notable.
Related:&nbsp;<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/centralized-stablecoins-pose-risk-defi-curve-finance-founder" rel="null" target="null" text="null" title="null">Centralized stablecoins may pose risk to DeFi —&nbsp;Curve Finance founder</a>
<h2 id="winners-get-liquidity-incentives-and-integration">Winners get liquidity, incentives and integration</h2>
Seventy teams applied for the competition and 10 were accepted. Five completed their CFMM protocols and proceeded to the final round. Torch Finance and Crouton Finance were the winners and will receive $150,000 each from TON for audits, as well as initial liquidity in new stablecoin pools and incentives to use the pools.
Liquidity from Torch Finance and Crouton Finance will be integrated into the CrossCurve cross-chain trading and yield protocol backed by Curve founder Michael Egorov that creates a unified liquidity market by aggregating existing Curve pools.
Seven venture capital firms have also made a soft commitment to invest $2.3 million in Torch Finance and Crouton Finance.
Next, TON and Curve Finance will launch $500,000 of incentives for cross-pool chains to enable stablecoin exchanges between the TON ecosystem and EVM networks.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/telegram-ceo-arrest-lawyers-debate-is-this-legal/" rel="null" target="null" text="null" title="null">Did Telegram’s Pavel Durov commit a crime? Crypto lawyers weigh in</a>
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Curve Finance, TON drive DeFi evolution through collaboration

Table of Contents

Cointelegraph

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