The TON Foundation and Curve Finance have announced a new collaboration to incubate a stablecoin project on the TON blockchain, according to a September 17 statement shared with CryptoSlate.
This collaboration aims to make stablecoin trading more efficient and user-friendly on the TON network. Both organizations will select an independent team to lead the project through a transparent process that ensures community involvement.
Curve Finance founder Michael Egorov will advise the development team. He will guide them on the protocol’s mechanics and growth strategies. The chosen team will implement Curve Finance’s stable swap formula into their project.
As part of this initiative, qualified users, including veCRV holders, will receive an airdrop of the project’s native tokens.
Growing adoption of stablecoins
The move comes amid growing adoption of the stablecoin on TON.
Tether’s USDT on TON reached over $700 million in net circulation within four months of its launch, marking its fastest growth rate ever.
A spokesperson for the TON Foundation highlighted this unprecedented demand and noted that the company aims to harness this growth by developing a platform to further drive adoption. They added:
“To help new users get acquainted with the benefits of Web3, we want to make the USDT trading experience on TON much more accessible.”
Weakness of DeFi activities
Despite this progress, TON faces significant challenges in DeFi and its trading activity lags behind its rivals.
A report from Bitget highlighted the limited lending options on the blockchain as a significant weakness. This lack of robust lending infrastructure could hamper TON’s ability to compete with more established ecosystems like Ethereum and Solana.
So, to become a significant player globally, TON needs to address these DeFi shortcomings and expand beyond its current strongholds in the CIS region.
Bitget concluded that while TON will continue to benefit from Telegram’s user base, it may gradually move towards “de-telegramization” to mitigate potential regulatory risks associated with the messaging platform.
