The TON Foundation has announced a partnership with Curve Finance to create a new stable swap project on the TON blockchain. The project will maximize Curve’s knowledge of stablecoin trading to improve the DeFi services available in the TON ecosystem.
A stable swap refers to a decentralized exchange mechanism specifically designed for trading stablecoins. Stablecoins are cryptocurrencies that maintain a stable value by being pegged to a reserve asset, typically a fiat currency like the U.S. dollar.
The primary purpose of stable swaps is to facilitate low-slippage and low-fee transactions between different stablecoins or between stablecoins and other assets. Stable swaps operate on automated market-making principles.
As part of this deal, Curve Finance will help the TON Foundation by providing technical advice and support to build a stable swap feature specifically for the TON blockchain. This new project will allow for low-fee, low-risk trades between stablecoins and other assets, similar to what Curve already offers on Ethereum and other platforms.
The TON Foundation noted that an independent team will be chosen to build the new project, making sure the process is open and includes input from the community. Furthermore, Michael Egorov, the founder of Curve Finance, will be one of the advisers for the project where he’ll share his vast knowledge in the industry with the team.
Vlad Degen from the TON Foundation highlighted strong community demand for the USDT token since its introduction. In the first four months after USDT was deployed on TON, its net circulation reached $729.9 million.
He also noted that more stablecoins and assets, including Bitcoin, will soon be available on TON to expand user options on the blockchain.
Read also: TON Foundation Alumni raise $40 million to support TON Ventures
The Open Network (TON) is a blockchain platform originally created by the team behind the Telegram messaging app, led by the Durov brothers. Designed to handle a large number of transactions quickly, it uses a unique system that splits the work across multiple blockchains for increased efficiency.
Toncoin (TON) serves as the main cryptocurrency on this network, used for transaction fees, participating in network activities like voting, and supporting decentralized apps and services such as TON Storage for file sharing and TON DNS for easy-to-use domain names.
Curve Finance, a well-known DeFi platform, helps users trade stablecoins with low fees and minimal price differences. By collaborating with Curve Finance, the TON Foundation aims to develop a new project that will enhance TON’s ability to offer low-cost trading and strengthen its decentralized finance services.
