The year 2025 will be the year of decentralized finance (DeFi) on The Open Network ($TON
) blockchain, developer TON Foundation announced. Decentralized exchange Curve Finance has joined the process, with TON and Curve holding a competition for DeFi teams to develop stable asset exchanges using Curve Finance's proprietary technology.
Preparing the DeFi components
TON is finalizing what it calls the first level of DeFi primitives, it announced in a blog post authored by TON DeFi head Vlad Degen. The author was referring to credit solutions, liquidity stacking and Constant Product Market Maker protocols. New Tier 2 projects include launch pads, options and derivatives, and:
“Upcoming plans include bridges between TON and other networks such as BTC and EVM, which will allow for the addition of new assets including major stackablecoins.”
Curve Finance's partnership with #CurveFinance , which was finalized in September, included a competition to develop Curve's Constant Functional Market Maker (CFMM). This technology promises to reduce price volatility and slippage.
Projects require a license to use CFMM technology, so the ability to swap on TON using this technology was notable.
Winners receive liquidity, incentives and integration
Seventy teams applied to the competition and 10 were accepted. Five completed their CFMM protocols and made it to the final round. Torch Finance and Crouton Finance were the winners and will each receive $150,000 from TON for their audits, as well as initial liquidity in new stackablecoin pools and incentives to utilize the pools.
The liquidity from Torch Finance and Crouton Finance will be integrated into CrossCurve's cross-chain trading and yield protocol, backed by Curve founder Mikhail Egorov, which creates a single liquidity marketplace by combining existing Curve pools.
Seven Ventures has also made a soft commitment to invest $2.3 million in Torch Finance and Crouton Finance.
Further, TON and Curve Finance will launch $500,000 in incentives for cross-chain pools to enable the exchange of stablecoins between TON's ecosystem and EVM networks.