The TON Foundation and Curve Finance have announced a new collaboration to incubate a stable swap project on the TON blockchain, according to a Sept. 17 statement shared with CryptoSlate.
This collaboration aims to make stablecoin trading more efficient and user-friendly on the TON network. Both organizations will select an independent team to spearhead the project through a transparent process that ensures community involvement.
Curve Finance founder Michael Egorov will advise the development team. He’ll guide them on protocol mechanics and growth strategies. The chosen team will implement Curve Finance’s stable swap formula into their project.
As part of the initiative, qualified users, including veCRV holders, will receive an airdrop of the project’s native tokens.
Growing stablecoin adoption
This move comes amid growing stablecoin adoption on TON.
Tether’s USDT on TON reached over $700 million in net circulation within four months of launch, marking its fastest growth rate ever.
A TON Foundation spokesperson highlighted this unprecedented demand and noted that the firm aims to tap into this growth by developing a platform to further boost adoption. They added:
“To help new users become familiar with the benefits of Web3, we want to make the trading experience of USDT on TON significantly more accessible.”
Weak DeFi activities
Despite this progress, TON faces significant challenges in DeFi, and its trading activity lags behind its rivals.
A Bitget report noted the limited lending options on the blockchain as a significant weakness. This lack of robust lending infrastructure could hinder TON’s ability to compete with more established ecosystems like Ethereum and Solana.
So, to become a significant player globally, TON must address these DeFi shortcomings and expand beyond its current strongholds in the CIS region.
Bitget concluded that while TON will continue to benefit from Telegram’s user base, it may gradually move towards “de-Telegramization” to mitigate potential regulatory risks associated with the messaging platform.