TON Foundation announced a partnership with leading DEX Curve Finance to launch a stable swap project on TON. According to the TON Foundation, the collaboration aims to create new opportunities on the TON network by utilizing Curve’s CFMM technology for trading stablecoin.
The TON Foundation declared that the integration would reduce slippage and price volatility and boost liquidity to enhance user DeFi experiences when trading stablecoin. Michael Egorov, Curve’s founder, would act as an advisor, while the partnership’s representatives selected an independent team to develop the project.
TON Foundation leverages Curve’s CFMM for smooth stablecoin trading
🔈 TON Foundation collaborates with @CurveFinance to incubate a new stable swap project on #TON!
This collaboration will simplify stablecoin trading, boost liquidity, and enhance the DeFi experience on TON.
Apply to build the project here ➡️ https://t.co/6o4vNNdrIK pic.twitter.com/KuflHkfjrT
— TON 💎 (@ton_blockchain) September 17, 2024
The TON Foundation publicized its intention to partner with DeFi OG Curve Finance to create a new stable swap project specifically for the TON ecosystem. Curve will contribute its CFMM model to support the new stablecoin project. According to the Foundation, integrating Curve’s advanced mechanism will simplify stablecoin swaps and reduce the impact on price during trades.
Vlad Degen, DeFi Lead at TON Foundation, claimed that the TON community had demonstrated high demand for the USDT token since it was launched on the TON ecosystem nearly four months ago. He added that more stablecoins and crypto assets from other chains like Bitcoin would soon join the ‘TON bandwagon.’
“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.”
According to The TON Foundation, veCRV holders and qualified users were scheduled to receive airdrop allocations of the new project’s native token. The Foundation said that the selected team would be required to implement Curve’s stable swap formula and receive support for the project’s growth. The TON Foundation and Curve Finance agreed on a ‘public and transparent’ selection process for the project development team.
A race to meet rising demand for TON-based stablecoins
The TON Foundation affirmed that the total circulation of over $729 million worth of USDT on TON only four months after the fastest-ever post-launch USDT growth was proof of increasing demand for stablecoins. As more assets continued to be developed on TON daily, The Foundation said its collaboration with Curve would help meet the growing demand while delivering outstanding trading experiences.
Degen asserted that TON was making trading more accessible to individuals not already fully embedded into the ecosystem by integrating Curve’s CFMM technology. The Foundation stated that the CFMM formula enabled stablecoin transfers with more efficient asset exchanges. The accessibility of TON-based trading also accelerated the pace of blockchain adoption, according to The Foundation’s statement.
Egorov confirmed that users could obtain fees in a ‘dollar-denominated’ stablecoin through a reliable and straightforward procedure. The Foundation disclosed that it was leveraging the success of the largest stablecoin in the industry, USDT, which had already reached an issuance of over $1 billion just months after it was launched on TON.
