TON Foundation is collaborating with decentralized finance (DeFi) protocol Curve to launch and develop a stablecoin swap project on The Open Network (TON) blockchain.
This partnership aims to enhance accessibility and create an efficient trading environment, providing new opportunities for stablecoin transactions on TON.
TON Partners With Curve Finance
With this partnership, TON taps into Curve Finance’s Constant Function Market Maker (CFMM) technology, simplifying stablecoin swaps and improving the user experience by minimizing price impact during trades.
Both parties will jointly select an independent development team to lead the stablecoin swap project. Additionally, Michael Egorov, founder of Curve Finance, will serve as an advisor, providing insights into protocol mechanics and development strategies. Furthermore, qualified users, including veCRV holders, will receive an allocation of the stablecoin swap project’s native tokens.
In hindsight, Tether expanded its stablecoin offering to Telegram’s TON blockchain in April. This marked the introduction of its USDT stablecoin, which holds a $118 billion market cap, onto TON’s ecosystem.
Similarly, Tonkeeper, a self-custody wallet for the TON blockchain, launched gasless USDT payments on The Open Network in late May. In June, the Binance exchange integrated USDT stablecoin on Toncoin network, setting the stage for deposits and withdrawals.
“In the four months since USDT’s launch, our community has demonstrated a historic level of demand for the token. You will soon see more stablecoins and assets from other chains, such as BTC, on TON. We need a native CFMM for a comfortable interaction — this is mandatory for our growth! Working with one of the industry’s leading market makers to incubate this new project was a natural choice,” an excerpt in the blog read.
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Recent data shows remarkable growth within TON ecosystem. The Total Value Locked (TVL) on the network is approaching $400 million, a dramatic rise from the lows of $21 million in early March. The integration of Tether’s USDT has played a key role in boosting trading volumes and user activity,
According to a blog report, USDT on the TON blockchain has reached a net circulation of $729.9 million within just four months since its launch, marking the fastest-growing USDT launch to date. This rapid growth reflects a significant demand for stablecoins on the TON network.
The growing demand for the TON blockchain, combined with Curve Finance’s expertise in market-making, suggests a promising future for stablecoin trading. This collaboration could lead to improved liquidity, minimized price impact, and increased adoption of the TON blockchain.
Read more: 6 Best Toncoin Wallets in 2024
Despite these developments, data from BeInCrypto reveals that the demand has not extended to TON’s native token, which is currently trading at $5.49. Meanwhile, Curve DAO’s token (CRV) has shown a modest increase of 0.8%, trading at $0.2667 as of this writing.
The post TON Foundation Partners with Curve Finance for Stablecoin Swap Project appeared first on BeInCrypto.
