Title: The Rise of Memecoin and the Impact on TON DeFi
Introduction:
In the first quarter of 2024, the memecoin craze became the central theme in the TON DeFi sector and the entire cryptocurrency market. This surge in activity can be attributed, at least in part, to the increase in on-chain activity and DeFi metrics.
TVL Growth and Dominance of Tonstakers:
One of the highlights of this quarter was the seven-fold increase in Total Value Locked (TVL), driven by increased activity on decentralized exchanges (DEXs) and the dominance of the liquidity staking protocol Tonstakers.
The Open League Launch and DEX Performance:
Another key theme was the launch of The Open League, a project that rewards users for interacting with the TON ecosystem and features a Toncoin prize pool for the top-performing TON projects each season. A crucial element of this project is the introduction of mining pools with improved Annual Percentage Yield (APY). The introduction of mining pools, along with the surge in memecoin trading volume, has positioned DEXs as the best-performing DeFi sector in terms of TVL on TON.
The Collision of The Open League and Memecoin Craze:
The popularity of memecoins, driven primarily by the surge in trading activity, attracted significant attention to DEXs such as DeDust and STON.fi. According to Tonalytica, the total trading volume on TON DEXs reached a historical high of $4.2 million within 90 days, surpassing $60 million in the second quarter.
DEX Performance and The Open League:
STON.fi and DeDust emerged as the primary liquidity pool venues, contributing significantly to the growth of TVL on TON during the first three seasons of The Open League. The third season is currently underway, and users can check the available enhanced pools on STON.fi and DeDust, as well as access The Open League Pools bot.
Telegram Mini Apps and Future Developments:
Both DeDust and STON.fi have launched their own Telegram Mini Apps, diversifying the trading experience and allowing users to execute trades directly on Telegram. Additionally, Storm Trade, the leading derivatives exchange on TON, now allows traders to use Toncoin as collateral for futures trading, simplifying the onboarding process and adding utility to Toncoin within the ecosystem. Furthermore, Storm Trade completed its largest-ever reward program as part of The Open League, with a prize pool of approximately $130,000 distributed to top performers in terms of trading volume, PnL ranking, and providing liquidity on designated pairs.
Liquidity Staking and TON’s Ranking:
Liquidity staking remains the top sector in terms of TVL on TON. According to DefiLlama, TON ranks 17th in TVL when considering both staked and unstaked liquidity value.
Tonstakers emerged as the winner in the liquidity staking competition during the pilot season of The Open League, followed by bemo and the new liquidity staking protocol Stakee. Stakee combines simplicity, reliability, and high APY to attract Toncoin holders seeking enhanced yield and low fees. The platform ensures transaction security and transparency by employing official smart contracts developed by the TON Foundation.
Evaa Protocol Launches on TON:
Evaa Protocol, with a total supply of $26.1 million and a total borrowing volume of $12.03 million, has launched on the TON mainnet. As part of The Open League, Evaa Protocol conducted supply and lending activities, offering users a unique opportunity to borrow TON, stTON, tsTON, jUSDC, and jUSDT tokens through EvaaAppBot or app.evaa.finance. Participants received weekly airdrops, interest rewards for supply and lending activities, and EVAA XP points, which can be redeemed for EVAA DAO tokens in the future.
RedStone: TON’s First Oracle Solution:
Oracles play a crucial role in blockchain technology as they bridge the gap between the blockchain and the external world. RedStone became the first available oracle on TON, marking a significant milestone in TON’s reliance on DeFi data integrity. RedStone’s Toncoin price feed combines data from 11 external sources. RedStone emphasizes the need for a major shift in integration methods due to TON’s asynchronous and fully decentralized nature, involving more complex inter-contract messaging rather than the typical simple contract interaction found in other blockchains. Looking ahead, RedStone aims to enhance TON’s DeFi ecosystem with new relay systems, smart contract templates, and advanced data feeds to meet the growing demand for reliable and secure oracle services.
Conclusion:
The rise of memecoin and the success of The Open League have paved the way for a unique niche market for jettons on the TON blockchain. While some of these jettons may not have clearly defined real-world applications yet, they still hold significant importance within the broader ecosystem. The increased interest in these diversified assets serves as the starting point for a larger process of increasing demand for DeFi infrastructure to meet the capital efficiency requirements of token holders. Despite initial skepticism, TON has gained traction among both cryptocurrency enthusiasts and everyday users for its affordability, accessibility, and user-friendly experience. As TON’s DeFi ecosystem becomes more complex, the need for reliable and secure oracle services will continue to grow. The efforts of RedStone indicate a high-level trend towards data integrity on TON. Furthermore, future developments, such as bringing EVM capabilities to TON solutions, non-standard order execution models for DEXs, and automatic compounding/yield optimizers, are expected to further enhance the ecosystem.