The current status and future prospects of the DeFi ecosystem on the TON chain

This week's market conditions are still not improving. In this issue of CryptoSnap, let's continue to talk about the development of Ton's on-chain ecology. Dr.DODO will take you to understand the current development status of Ton Defi and the direction of future efforts, as well as which areas of development retail investors need to pay attention to!

Current Status of Ton Defi

Although Defi is not the main theme of the narrative in this cycle, for any public chain, the development of Defi is still a major indicator of whether the on-chain ecology is thriving, and it is the foundation of the foundation. Of course, it is no exception for Ton.

As mentioned in the previous Cryptosnap introduction, the most basic Defi applications on the TON chain, such as DEX, lending, liquidity pledge, etc., the first-layer Defi Lego protocols are already available, which can meet the basic needs of most retail investors, but for high-end Defi players or whale farmers, there are still many shortcomings. The author lists the five most important points that the TON ecosystem needs to continue to develop:

• Introduction of mainstream assets BTC and ETH

• More cross-chain bridge support

• Oracle

• Second-layer Defi income agreement

• Memecoin infrastructure

Source: https://ton.org/en/roadmap

The third point is that the oracle determines whether more complex DeFi protocols can be implemented. It is also the key for many large users to determine whether they can participate in the project. At present, the mainstream oracle in the Ton ecosystem is the quotation function provided by Redstone, but for many whale players, Redstone still cannot get enough trust foundation. How to introduce oracles such as Chainlink or Pyth with strong capital support is also the key to whether TVL can move to a higher level.

The second-layer Defi income agreement written in the fourth point corresponds to the first-layer Defi Lego agreement in the Ton ecosystem that the author mentioned earlier. However, there are still few second-layer Defi Lego income projects that focus on APR income, such as mortgage stablecoins, packaged interest-bearing assets, income strategy farms, etc.

The last point I think is the general trend of this cycle, the mainstreaming of Memecoin. I think the most successful SOL ecosystem in this cycle is not actually brought about by Defi applications, but more by the vigorous development of Memecoin, which has driven the growth of DEX's TVL. Therefore, MemeFi is a key point that I think can be vigorously developed. Although there are many teams that have been working in this direction, such as TON Raffles, Ton UP, Thunder Finance, etc., in my opinion, the promotion of Memecoin requires the official combination of venture capital to ignite the detonation point, just like Solana's $BONK and $WIF. Only with the wealth effect can the subsequent MemeFi ecosystem be ignited.

Mini APP

The biggest feature of the Ton ecosystem is the Telegram Mini APP. Although most of the Ton Mini APPs are game projects, most of the mainstream Defi applications on Ton have two front-end interfaces, one is the ordinary web-side Dapp and the other is the front-end of the Telegram Mini APP. I think the development of the Telegram Mini APP will effectively narrow the gap between TON's DeFi services and Telegram users, and can capture more new mobile users.

But on the other hand, complex Defi applications are not suitable for the experience and security of mobile terminals. Mini APP or Telegram Chatbot is more suitable for the time-sensitive Memecoin field. Perhaps it is necessary to wait for the golden dog on Ton to appear before a large number of players will become new users of the 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 fifth season of The Open League. To be honest, I’m a little disappointed with the Ton Defi project so far. There are only six participating protocols and they are exactly the same as the fourth season. There are no new projects joining, and for the projects that have already issued coins, there is only the NFT lending protocol DAOLama The token $LLAMA squeezed into the top ten.

Currently, Storm Trade, a derivatives on-chain perpetual contract protocol that ranked third in the previous period, is currently ranked first and its TVL performance has also increased significantly, while Tradoor, which is also in the derivatives perpetual contract track, has not made any progress but has regressed. 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 opinion

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 brand new language, which increases many development barriers. At present, we have not seen strong support from venture capital, such as Multicoin and Jump Crypto for Solana There is no representative developer like AC in the Ethereum Defi ecosystem. Of course, it is too early to draw conclusions. The development of Ton’s Defi is still worth continued attention.