Data Review: How Did TON's DeFi Perform in Q2?
TechFlow Selected TechFlow Selected
Data Review: How Did TON's DeFi Perform in Q2?
As of the end of July, TON ranked 7th in daily active users and 8th in monthly active users among public blockchains.
Navigating Web3 tides with focused insightsAuthor: The Open Platform
Translation: 1912212.eth, Foresight News
The second quarter of 2024 marked a turning point for TON's DeFi ecosystem. With the launch of native USDT, liquidity and trading volume surged significantly. This growth propelled the TON/USDT liquidity pools on DeDust and STON.fi to become the largest stablecoin multi-exposure liquidity pools among all public blockchains (source: DefiLlama data). Additionally, TON rolled out key infrastructure during this quarter. In this report, we will explore the following topics:
-
Data trend charts;
-
Market dynamics of TON DEX liquidity pools;
-
TVL performance of smaller protocols: EVAA and Storm Trade;
-
New launches: ION Finance, DEX Diamonds, Tradoor;
-
Solutions bringing EVM functionality to TON: TON App Chains;
-
Launch of the decentralized development platform TonFura.
The launch of USDT-TON led to a 7x increase in TON’s TVL in Q2 2024, with its average daily active addresses surpassing Ethereum
The second quarter of 2024 was characterized by explosive growth across key metrics for TON. The introduction of native USDT greatly boosted liquidity and trading volume on major DeFi protocols within the ecosystem. Incentive programs also played a crucial role in acquiring new users and increasing ecosystem TVL, with wallet counts and monthly active wallets growing over 200% during the quarter.
Since the launch of The Open League, TON’s average daily active addresses have been on a steady upward trajectory. After the launch of native USDT on April 19, growth accelerated sharply. By June, TON’s average daily active address count had surpassed that of Ethereum.
According to Token Terminal data, as of July 29, TON ranked 7th in daily active users and 8th in monthly active users among public blockchains.
DEX Liquidity Pools Rank First
DEX protocols regained dominance in TVL, a position previously held mainly by liquid staking protocols. This shift was driven by a surge in TVL within liquidity pools on STON.fi and DeDust—especially the USDT-TON trading pair pools.
By the end of the quarter, DeDust and STON.fi accounted for more than 50% of TON’s total TVL.
In Q2 2024, DeDust and STON.fi saw their TVL grow tenfold and fivefold respectively, with most of this growth occurring in June. This trend aligns closely with the rise in the TON/USDT LP pools on both DEXs.
Excluding USDT-based pools, STON.fi maintained its lead, accounting for 61% of the TVL across DEXs in the ecosystem by quarter-end.
To promote adoption of the USDT-TON pair, the TON Foundation allocated 10 million TON tokens to DeDust and STON.fi. Users can now provide liquidity with TON and USDT-TON on these two DEXs, earning annualized yields of approximately 50%. Currently, the TVL in these two pools stands at $301.12 million and $286.75 million respectively.
Smaller protocols show strong TVL growth in Q2 2024
While DEXs led in absolute TVL growth this quarter, EVAA and Storm Trade delivered the strongest percentage increases. Due to their smaller base sizes, their relative growth rates were particularly impressive.
EVAA’s TVL spike coincided with significant capital inflows in mid-May and mid-June. The first peak may have been driven by EVAA’s announcement that its TON-denominated yield had increased to 100% APY.
Storm Trade’s TVL surge aligned with The Open League campaign and the introduction of its USDT treasury—a yield optimizer that “aggregates liquidity from private markets and channels it into staking protocols to optimize returns.”
In addition, Storm Trade launched multi-collateral support this quarter. This new feature allows users to use various cryptocurrencies such as TON and USDT as collateral for futures trading across multiple pairs. It aims to dramatically improve user experience by increasing asset utilization and reducing the friction of frequently swapping tokens.
New DEX models are entering the ecosystem
This quarter, TON introduced two projects featuring alternative execution models and a new derivatives DEX.
ION is TON’s first liquidity-focused DEX, employing a “bin”-based order execution model within its hybrid orderbook-AMM design. This system enables liquidity providers to allocate funds to specific price ranges, enhancing capital efficiency and reducing slippage. Each bin represents a distinct price point, ensuring liquidity is concentrated where demand is highest. By focusing capital in high-demand zones, this approach optimizes returns for LPs while improving pricing accuracy and trade efficiency for traders.
DEX Diamonds is a jetTON DEX aggregator that has launched its Telegram Mini App. The platform aggregates liquidity from STON.fi and DeDust. DEX aggregators like DEX Diamonds operate by consolidating liquidity from multiple decentralized exchanges onto a single interface. This method provides users with better token prices and lower slippage due to deeper aggregated liquidity. Moreover, DEX aggregators allow users to execute trades across various DEXs without needing to compare prices or navigate multiple platforms manually, streamlining the trading process. This results in a more efficient, cost-effective, and user-friendly trading experience, enabling traders to easily find optimal exchange rates and seamlessly execute larger orders.
Tradoor is a new derivatives DEX on TON, designed to offer seamless and efficient trading experiences for users seeking up to 100x leverage on Bitcoin and Ethereum perpetual contracts. Tradoor positions itself as an NDMM (Normal Distribution-based Market Maker). NDMM is a unique pricing mechanism that uses advanced mathematical models to ensure efficient pricing and enhance both trader and LP experiences. The NDMM mechanism calculates a deviation rate for each trading pair based on the imbalance between long and short positions, then applies a normal distribution function to determine the premium rate. This ensures that liquidity providers always act as passive counterparties, trading at consistent prices, thereby reducing risk and maintaining market stability.
TON achieves EVM functionality via TON App Chains (TAC)
TON is a non-EVM blockchain, meaning it does not natively support the Ethereum Virtual Machine (EVM)—the runtime environment for smart contracts on Ethereum. Examples of non-EVM blockchains include Bitcoin, Solana, and Polkadot. These chains can benefit from EVM compatibility, as integrating EVM allows them to leverage the extensive ecosystem of Ethereum-compatible tools, DApps, and developer expertise. However, introducing EVM functionality to non-EVM chains is highly complex due to differences in underlying architecture, consensus mechanisms, and programming languages, requiring substantial engineering effort.
Ultimately, TON achieved EVM compatibility through a Layer 2 solution built on Polygon technology. TON App Chain (TAC) is a new protocol that facilitates this integration using Polygon’s zkEVM. Polygon was chosen as the foundation for EVM compatibility, enabling TON to maintain its high throughput and low latency while leveraging Polygon’s expertise in building scalable and efficient Layer 2 solutions.
Enhancing DApp Development on TON: Introducing TonFura
TonFura aims to improve the overall performance and scalability of applications on the network, providing developers with powerful tools to effortlessly build and deploy high-performance DApps.
TonFura’s core offerings include the TonFura SDK—an integrated toolkit for developers to build and manage DApps—and services that enable seamless access to blockchain data and infrastructure.
TonFura complements the TON API by simplifying access to TON’s functionalities, allowing developers to manage DApps, tokens, and payments, while also offering advanced data analytics and seamless integration with various blockchain services. The TON API is deeply integrated across multiple Web3 domains on TON. Some DeFi integrations powered by the TON API include STON.fi, DeDust, TONstarter, and TON Whales.
Join TechFlow official community to stay tuned
Telegram:https://t.me/TechFlowDaily
X (Twitter):https://x.com/TechFlowPost
X (Twitter) EN:https://x.com/BlockFlow_News
@topdotco
