Original Author: dt
Original Translation: Lisa
This week’s market trend remains sluggish. In this issue of CryptoSnap, let’s continue to discuss the development of Ton’s on-chain ecosystem. Dr. DODO will guide us through the current state of Ton Defi and the directions for future efforts, as well as which areas retail investors should focus on!
Ton Defi Status
Although Defi is not the main narrative in this cycle, the development of Defi is still a major indicator of whether the on-chain ecosystem of any public chain is thriving, and it is the foundation of the foundation. Of course, Ton is no exception.
As mentioned in the previous issue of Cryptosnap, the most basic Defi applications on the Ton chain, such as DEX, lending, liquidity staking, and other first-layer Defi Lego protocols, are already in place to meet the basic needs of most retail investors. However, there are still many shortcomings for high-end Defi players or whale farmers. Here are the five most important points that the Ton ecosystem needs to continue developing:
– Introduction of mainstream assets BTC and ETH
– More cross-chain bridge support
– Oracle
– Second-layer Defi yield protocols
– Memecoin infrastructure
The first two points are the most basic cross-chain bridges and support for other major assets. The explosive growth of TVL on the Ton chain from 100M to 700M in Q2 2024 was mainly driven by the support of native USDT. The author believes that the key to breaking through 1B TVL in the next stage is the support of other mainstream assets BTC and ETH, along with more third-party bridges providing liquidity. This is also the development goal for the next quarter as stated in the current Ton Foundation roadmap.
Source: https://ton.org/en/roadmap
The third point, the oracle, determines whether more complex Defi protocols can be implemented and is also a key factor for many large investors to decide whether to participate in the project. Currently, the mainstream oracle in the Ton ecosystem is provided by Redstone, but for many whale players, Redstone still lacks a sufficient trust foundation. How to introduce oracles like Chainlink or Pyth, which have strong capital support, is also crucial for TVL to reach a higher level.
The fourth point, the second-layer Defi yield protocols, corresponds to the first-layer Defi Lego protocols mentioned earlier. However, there are still relatively few second-layer Defi Lego yield projects, such as collateralized stablecoins, wrapped interest-bearing assets, yield strategy farms, etc., which focus on APR yield.
The last point is the mainstreaming of Memecoin, which the author believes is the major trend of this cycle. The author believes that the most successful SOL ecosystem in this cycle was not driven by Defi applications, but more by the booming development of Memecoin, which drove the growth of DEX TVL. MemeFi is therefore a key point that the author believes can be vigorously developed. Although many teams are already working in this direction, such as TON Raffles, Ton UP, Thunder Finance, etc., the promotion of Memecoin, in the author’s view, requires official cooperation with venture capital to ignite the tipping point, similar to Solana’s $BONK and $WIF. The wealth effect is needed to ignite the subsequent MemeFi ecosystem.
Mini APP
The author believes that the biggest feature of the Ton ecosystem is the Telegram Mini APP. Although most of the current Ton Mini APPs are game projects, the mainstream Defi applications on Ton also almost all have two front-end interfaces, one is the ordinary web Dapp, and the other is the Telegram Mini APP front-end. The author believes that the development of the Telegram Mini APP will effectively narrow the gap between TON’s DeFi services and Telegram users, capturing more new mobile users.
On the other hand, complex Defi applications are not suitable for mobile experience and security. Mini APP or Telegram Chatbot is more suitable for time-sensitive Memecoin fields. Perhaps we need to wait for the appearance of the golden dog on Ton to drive a large number of players to become new users of Mini APP.
Source: https://t.me/dedustBot
Source: https://t.me/StormTradeBot
The Open League Season 5
Finally, let’s talk about the recently started The Open League Season 5 competition. Honestly, the author is a bit disappointed with the current Ton Defi projects. There are only six participating protocols, and they are exactly the same as the participating protocols in Season 4, with no new projects joining. Among the projects that have issued tokens, only the NFT lending protocol DAOLama token $LLAMA made it into the top ten.
Current standings: The on-chain perpetual contract protocol Storm Trade, which ranked third in the previous issue, is currently ranked first, with a significant increase in TVL. The other perpetual contract protocol, Tradoor, has regressed instead of progressing. The second place is the lending protocol EVAA, the third place is the NFT lending protocol DAOLama, and the fourth and fifth places are occupied by the two major DEX protocols DeDust and Ston.Fi.
Source: https://ton.org/open-league
Source: https://ton.org/open-league
Author’s View
This article focuses on the development of Ton’s Defi. The author believes that there is still a lot of room for development in Defi. One of the problems may be related to the fact that Ton’s development code is a new language, which increases many development thresholds. Currently, there is no strong support from venture capital, such as Multicoin and Jump Crypto for Solana, and no representative developers have emerged, such as AC for the Ethereum Defi ecosystem. Of course, it is still too early to draw conclusions. The development of Ton’s Defi is still worth paying attention to.
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