Repost by https://m.techflowpost.com/article/detail_19794.html
The second quarter of 2024 marked a turning point for the DeFi ecosystem on TON, with the launch of native USDT significantly increasing its liquidity and trading volume. This growth led to TON/USDT liquidity pools on DeDust and STON.fi becoming the largest stablecoin multi-exposure liquidity pools among public chains (according to DefiLlama data). Additionally, TON introduced important infrastructure this quarter. This report will cover:
- Data and chart trends;
- Market dynamics of TON DEX liquidity pools;
- Performance of smaller protocols: EVAA and Storm Trade;
- Launch of ION Finance, DEX Diamonds, Tradoor;
- Solutions for integrating EVM functionality into TON: TON Application Chain;
- Introduction of the decentralized development platform TonFura.
The launch of USDT-TON led to a sevenfold increase in TON’s TVL in Q2 2024, with its average daily active addresses (DAA) surpassing Ethereum’s.
In Q2 2024, TON experienced explosive growth in various data metrics. The introduction of native USDT greatly boosted liquidity and trading volume for major DeFi protocols on the platform. Incentive programs played a significant role in attracting new users and enhancing ecosystem TVL, with wallet numbers and monthly active wallets increasing by over 200% this quarter.
Since the launch of The Open League, the average daily active addresses on TON have been steadily rising. After the launch of native USDT on April 19, data growth accelerated. By June, TON’s average daily active addresses exceeded Ethereum’s.
According to Token Terminal data, as of July 29, TON ranked 7th in daily active users and 8th in monthly active users among public chains.
DEX Liquidity Pools Rank First
DEX protocols regained TVL dominance, a position that was previously held by liquidity staking protocols. This shift is attributed to the surge in TVL of liquidity pools on STON.fi and DeDust, particularly the USDT-TON trading pair pools. By the end of the quarter, DeDust and STON.fi accounted for over 50% of TON’s TVL.
In Q2 2024, the TVL of DeDust and STON.fi increased tenfold and fivefold, respectively, with most of the growth occurring in June. This trend aligns with the performance of TON/USDT LP pools on both DEXs.
When excluding USDT pools, STON.fi remains the leader, holding 61% of the TVL in the DEX ecosystem by the end of the quarter.
To promote the adoption of USDT-TON, the TON Foundation allocated 10 million TON tokens to DeDust and STON. Users can now earn approximately 50% annual returns by providing liquidity for TON and USDT-TON on these DEXs. Currently, the TVL of the two mining pools stands at $301.12 million and $286.75 million, respectively.
Strong TVL Growth in Smaller Protocols
While DEXs led the TVL growth this quarter, EVAA and Storm Trade showed the most impressive percentage growth. Their smaller size made their percentage growth particularly notable.
The TVL of EVAA surged in mid-May and mid-June, with the first peak possibly driven by EVAA announcing an increase in its annualized yield to 100%.
The TVL of Storm Trade surged in conjunction with The Open League event and the introduction of the USDT treasury, which is a yield optimizer that aggregates liquidity from private markets and directs it to staking protocols to optimize returns.
Additionally, Storm Trade launched multi-collateral options this quarter, allowing users to use various cryptocurrencies, such as TON and USDT, as collateral for trading different currency pairs. This feature aims to significantly improve user experience by enhancing asset utilization and reducing the hassle of frequently swapping tokens.
New DEX Models Entering the Ecosystem
This quarter, TON introduced two projects with alternative trading execution models and new derivatives DEXs.
ION is the first liquidity DEX on TON, employing a bin-based order execution model within its hybrid order book AMM. This system allows liquidity providers to allocate their funds to specific price ranges, thereby enhancing liquidity efficiency and reducing slippage. Each range represents a different price point, ensuring that liquidity is concentrated where it is most needed. This method optimizes returns for liquidity providers by focusing funds on high-demand areas and enhances trading experiences through better pricing and more efficient trades.
DEX Diamonds is a jetTON DEX aggregator that has launched its Telegram Mini APP. The platform aggregates liquidity from STON.fi and DeDust. DEX aggregators like DEX Diamonds operate by consolidating liquidity from multiple decentralized exchanges into one platform. This approach provides users with better token prices and lower slippage due to increased liquidity compared to individual DEXs. Aggregators also allow users to execute trades across various DEXs without having to compare prices or navigate multiple interfaces, leading to a more efficient, cost-effective, and user-friendly trading experience.
Tradoor is a new derivatives DEX on TON designed to offer seamless and efficient trading experiences for Bitcoin and Ethereum perpetual contracts with up to 100x leverage. Tradoor positions itself as an NDMM (Normal Distribution Market Maker). NDMM is a unique pricing mechanism that uses advanced mathematical models to ensure efficient pricing, enhancing trading and liquidity provider experiences. The NDMM mechanism calculates deviation rates for each trading pair based on the difference between long and short positions and uses a normal distribution function to determine premium rates. This method ensures that liquidity providers consistently act as passive counterparties, trading at consistent prices, thereby reducing risk and maintaining market stability.
TON Introduces EVM Functionality through the TON Application Chain
TON is a non-EVM blockchain, meaning it does not natively support the Ethereum Virtual Machine (EVM), the runtime environment for smart contracts on Ethereum. Non-EVM blockchains, like Bitcoin, Solana, and Polkadot, may benefit from EVM functionality as it allows them to leverage the extensive Ethereum-compatible tools, DApps, and developer ecosystem. However, integrating EVM functionality into a non-EVM chain is complex due to differences in underlying architecture, consensus mechanisms, and programming languages.
TON has achieved EVM compatibility through a Layer 2 solution based on Polygon technology. The TON Application Chain (TAC) is a new protocol that facilitates this integration by utilizing Polygon’s zkEVM. Polygon was chosen for EVM compatibility to allow TON to maintain its high throughput and low latency while leveraging Polygon’s expertise in creating scalable and efficient Layer 2 solutions.
Strengthening DApp Development on TON: Introduction of TonFura
TonFura aims to enhance the overall performance and scalability of applications on the network by providing developers with powerful tools to effortlessly build and deploy high-performance DApps.
TonFura’s core products include the TonFura SDK, which offers developers a comprehensive toolkit for building and managing DApps, and provides seamless access to blockchain data and services.
TonFura complements the TON API, simplifying access to TON features, allowing developers to manage DApps, tokens, and payments, while offering advanced data analytics and seamless integration with various blockchain services. The TON API is deeply integrated into various Web3 areas of TON, with some DeFi integrations including STON.fi, DeDust, TONstarter, and TON Whales.