TON Foundation has partnered with Curve Finance to launch a stablecoin swap project on TON

Michael Egorov on X: "Happy to advise TON ecosystem in its efforts to incubate a native stable-swap project. In addition, excited to expand Curve, to TON and Telegram via TAC, the TON extension network. This way, quality DeFi will be able to appear there both natively and in EVM-compatible ways. 

blog.ton.org/ton-foundation-and-curve-finance

On September 17, 2024, the TON Foundation has partnered with Curve Finance to launch a stablecoin swap project on The Open Network (TON) blockchain. This collaboration aims to enhance stablecoin trading by leveraging Curve Finance’s Constant Function Market Maker (CFMM) technology, which helps reduce price volatility and slippage for stablecoin swaps.

Curve Finance’s Constant Function Market Maker (CFMM) is a decentralized algorithmic trading system designed to facilitate efficient, low-slippage swaps between stablecoins or similar assets.

Unlike traditional exchanges that rely on order books, CFMMs use mathematical formulas to determine the prices of assets and execute trades.

Specialized for Stablecoins

Curve’s CFMM is optimized for assets that are expected to have very similar values, such as stablecoins (e.g., USDT, USDC) or different versions of the same cryptocurrency (e.g., wBTC and BTC). This allows Curve to minimize price impact during swaps, especially in large trades.

Constant Function Formula

The formula behind Curve’s CFMM ensures that the product of the pool’s asset reserves remains constant during trades. This formula is fine-tuned to maintain liquidity and ensure price stability, making it particularly effective for stablecoin swaps.

Low Slippage and High Efficiency

The system’s design allows for large trades between stablecoins with minimal slippage (the difference between the expected and actual price of a trade).

The project will integrate Curve’s constant-function market maker (CFMM) technology, renowned for its role in simplifying stablecoin swaps and reducing price impact. By leveraging this cutting-edge technology, the partnership hopes to enhance the user experience and revolutionize the stablecoin trading landscape on TON.

"We are thrilled to collaborate with Curve Finance, one of the leading market makers in the industry," said Vlad Degen, DeFi Lead at TON Foundation. "The growing demand for stablecoins on our platform, including the impressive success of USDT, highlights the need for a native CFMM to streamline interactions and facilitate further growth."

Curve’s founder, Michael Egorov, will serve as an advisor for the project, guiding its development and ensuring the implementation of Curve's stable swap formula. An independent development team will be selected to carry out the project, with transparency and community involvement central to the process. As part of the initiative, native tokens will be airdropped to qualified users, including holders of Curve’s veCRV token.

In summary, Curve Finance's CFMM provides a highly efficient way to trade stable assets by maintaining tight price stability, minimizing slippage, and ensuring liquidity—factors that are crucial for stablecoin markets.

This partnership comes in response to the surging demand for stablecoins on TON, particularly following the successful launch of USDT on the network. In just four months, USDT circulation on TON has reached $729.9 million, marking the fastest-growing USDT launch to date.

The collaboration between TON Foundation and Curve Finance is expected to bolster liquidity, reduce trading friction, and further drive adoption of the TON blockchain.

Developers interested to develop the project can apply using the link below:

https://forms.gle/sdkT4fWLyCpRvQWD8

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