Curve Finance, ton drive DeFi evolution with partnerships

Developer TON Foundation has announced that DeFi (DeFi) will be on the Open Network (TON) blockchain in the coming New Year. Decentralized exchange Curve Finance joined to start the process, and Ton and Curve held a competition for DeFi teams to use Curve Finance's proprietary technology to create a stable asset exchange.

Getting the pieces in place for DeFi

Ton is completing what it calls the first phase of Diffie Primitives, announced in a blog post by TonDiffi leader Vlad Degen. The author had in mind credit solutions, liquid payment and fixed product market maker protocols. New-stage projects include launchpads, options and derivatives, and:

“Next plans include bridges between TON and other networks such as BTC and EVM, which will allow the addition of new assets, including major stablecoins.”

As the partnership with Curve Finance ended in September, a competition was held to develop Curve's Constant Functional Market Maker (CFMM). This technology promises to reduce price volatility and lower volatility.

Projects need a license to use CFMM technology, so the potential for tonnage swaps using the technology is obvious.

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Winners will find liquidity, motivation and integration

70 teams applied for the tournament and 10 teams were accepted. Five completed their CFMM protocols and advanced to the final round. Two entities – Torch Finance and Crouton Finance – were the eventual winners. The competition winners will each receive $150,000 per ton for the audit, as well as initial liquidity in new stable coin pools and incentives to use the pools.

Torch Finance and Croton Finance will be integrated into the CrossCurve cross-chain trading and production protocol supported by Curve founder Michael Egorov, bringing together the existing Curve pools to create a unified liquidity market.

Seven venture capital firms have also committed to invest $2.3 million in Torch Finance and Croton Financial.

Next, TON and Curve Finance will launch $500,000 in incentives for cross-pool chains to enable stable coin exchange between the TON ecosystem and EVM networks.

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