Overview of TON Ecosystem DeFi Status in the First Quarter of 2024
Original title: The State of TON DeFi Q1 2024
Original author: The Open Platform
Original translation: Ismay, BlockBeats
Memecoin hype was a central theme in the TON DeFi space and the overall cryptocurrency landscape in the first quarter of 2024, which was at least partly responsible for the surge in on-chain activity and DeFi metrics:
Source: TonStat, DeFillama, CoinMarketCap
One of the main highlights of the quarter was the 7x increase in TVL, driven primarily by increased DEX activity and the market dominance of the liquid staking protocol Tonstakers.
Another key theme was the launch of the Open League. The program rewards users who interact with TON projects and features a Toncoin prize pool competition that rewards the strongest performing TON-based projects each season. A key element of the program is the farming pool that increases APY. The introduction of farming pools, along with a surge in memecoin trading volume, has made DEX the best performing DeFi space on TON based on TVL:
In the following sections, we will explore the patterns behind the soaring performance of TON-based DEXs in more detail.
DEX: Public League Meets Memecoin Hype
Tokens on the TON blockchain, also known as jettons, have seen a sharp rise in popularity in the last quarter of 2023, which has continued to this day. Memecoin has largely driven the increase in trading activity.
Chronologically, this rally was preceded by the launch of Notcoin, a previously untradable memecoin that anyone could "mine" by clicking a button in the Notcoin mini-app on Telegram. In just a few months after its launch, Notcoin attracted 35 million active users. Notcoin, now listed on multiple DEXs and CEXs, inspired a variety of meme jettons with similar mechanisms. The surge in jettons was one of the main drivers of the surge in trading volume on TON-based DEXs.
The hype around memecoins has attracted a lot of attention to DeDust and STON.fi, two DEXs that list a large share of these tokens. According to Tonalytica, total volume on TON DEXs hit a 90-day all-time high of $4.2 million. The second quarter saw another all-time high, now at over $60 million:
Below is a screenshot from our internal analytics tool showing volume on both DEXs. The pattern matches up well with the one on the Tonalytica chart:
STON.fi and DeDust were the main venues for enhancing liquidity pools, an incentive initiative of the Open Alliance. This has led to a more than 9x increase in TVL on TON, with both DEXs contributing significantly over the first three seasons of the show. Season 3 has begun, and readers can check out the available boosted pools on STON.fi and DeDust, and access the Open League Pools bot.
STON.fi ranked first in the DeFi competition held during the Open League pilot season, followed by DeDust. The ranking is based on the change in TVL and the protocol fees earned during the pilot season. The final ranking can be viewed here.
One of the themes of the first quarter of 2024 was the launch of Telegram Mini Apps by the two major DEXs. DeDust and STON.fi now have their own mini apps, which will make the trading experience more diverse and allow users to execute trades directly in Telegram. This may be particularly convenient for traders who use Telegram-based token research tools and news channels.
In addition, Storm Trade (currently the main derivatives exchange on TON) now allows traders to use Toncoin as collateral for trading futures. This update eliminates the need to convert TON to jUSDT to post collateral, simplifies the user onboarding process, and assigns additional utility to Toncoin in the ecosystem. In addition, Storm Trade completed its largest ever bounty program as part of the Open League, with a prize pool of approximately $130,000. Rewards will be distributed to traders with the best trading volume, PL ranking, and liquidity performance in designated trading pairs.
Liquid Stake Propels TON into the Top 20 Chains by TVL
Liquid staking remains the dominant sector on TON by TVL. According to DefiLlama, as of this report, TON ranks 17th by TVL when considering both Stake and Liquid Stake values.
Tonstakers won the liquidity staking competition of The Open League pilot season, followed by bemo and new liquidity staking protocol Stakee, and maintained their lead in terms of TVL market dominance. Similar to the DeFi competition, rankings are based on changes in TVL; another metric used is the number of new users joining the protocol in the corresponding period.
Stakee (Stakee Bot) is a new liquidity staking protocol on TON. Stakee blends simplicity, reliability, and high APY to attract Toncoin holders seeking to increase yield with minimal fees. The platform ensures secure and transparent transactions by running official smart contracts developed by the TON Foundation.
In addition, TON Whales launched Whale Liquid, a new liquid staking pool. The protocol allows Toncoin holders to earn wsTON (which can be exchanged on DeDust) as well as a lending protocol on TON. The project is currently in beta with a total stake of 848K Toncoin (over $5M).
Lending: EVAA Protocol Goes Live on TON
Evaa Protocol went live on the TON mainnet. As of this report, Evaa has a total supply of $26.1M and total borrowings of $12.03M.
EVAA Protocol hosted a supply and lending event as part of the Open Alliance. The campaign offered users a unique opportunity to lend or borrow tokens such as TON, stTON, tsTON, jUSDC and jUSDT through EvaaAppBot or app.evaa.finance. Participants received interest rewards from weekly airdrops, supply and lending activities, as well as EVAA XP points, which can be exchanged for EVAA DAO tokens in the future.
While the campaign has officially ended, the reward pool with an attractive APY is still available in the app:
Similarly, DAOLama held a farm season event and launched Reward Points (RP), an internal token designed to incentivize users through in-app activities. Every loan issued earns RP, which can be exchanged for $LLAMA. The promotion period ended on March 30th, and users can now trade the token on STON.fi and DeDust.
RedStone is the first Oracle solution on TON
Oracles are an essential component of blockchain technology as they act as a bridge between a blockchain and the outside world. They provide a reliable way to input external data, such as token or stock prices, into a blockchain. This functionality is critical to enabling smart contracts (self-executing contracts whose terms are written directly into the code) to interact and react to external events.
RedStone becomes the first available oracle on TON, marking a major milestone in data integrity for TON-based DeFi.
RedStone emphasized that the asynchronous and fully decentralized nature of TON requires a significant shift from the usual integration approach, involving more complex inter-contract messaging rather than the direct contract interactions common in other blockchains. Looking ahead, RedStone aims to support TON’s DeFi ecosystem with a new relay system for consistent price updates, smart contract templates for easier integration, and advanced data feeds to meet the growing needs of TON-based DeFi. Learn more about the integration here.
Future Outlook
Jettons on the TON blockchain are carving out a unique niche, representing a diverse range of digital assets that go beyond traditional utility. While some of these Jettons may not yet have clearly defined real-world applications, they still have an important place in the broader ecosystem.
The surge in interest in these diverse assets could be the starting point of a larger process: an increasing need for DeFi infrastructure to meet the capital efficiency requirements of token holders. We can already see evidence of this with the success of incentive campaigns as part of the Open League.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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