The TON Foundation has partnered with Curve Finance, a decentralized exchange (DEX), to optimize stablecoin swaps with reduced price volatility and slippage.
To enhance the user experience and stablecoin trading on the TON blockchain, the partnership will work together to “incubate a new TON-based stable swap project.”
The TON-based swap initiative will employ Curve Finance’s Constant Function Market Maker (CFMM) technology, renowned for reducing Stablecoin’s price impact and equivalent asset swaps.
Vlad Degen, the DeFi head at TON Foundation, explained the implications of the CFMM tech integration in a written Q&A with Cointelegraph.
“By integrating Curve’s CFMM technology, TON can make trading much more accessible to those who might not already be fully embedded into the ecosystem.”
CFMM integration with TON
The CFMM formula enables stablecoin transfers with reduced price volatility and lower slippage, which leads to more efficient asset exchanges, as per a press release shared with Cointelegraph.
Stable swaps on TON through the new project are a notable feature of the partnership, as projects wishing to utilize Curve Finance’s CFMM technology are currently required to obtain a license.
“The collaboration with TON Foundation aims to improve the stablecoin trading experience on TON, making TON-based trading more accessible, and accelerating the Blockchain’s pace of adoption.”
Procedure for selecting a project
The TON Foundation and Curve Finance will conduct a “public and transparent” procedure to select “an independent team” to develop the stable swap project.
“Michael Egorov, Founder of Curve Finance, will act as advisor to the selected development team, assisting with protocol mechanics and the project’s growth strategy.”
The chosen team will be granted the “right to incorporate Curve Finance’s stable swap formula into their project,” which will result in allocating the new project’s tokens to eligible users.
The stablecoin curve
On June 28, Curve Finance implemented a fee distribution mechanism transition from the 3cr token to its native stablecoin crvUSD, in addition to this most recent partnership.
The objective of the transition was to enhance the utility of crvUSD and integrate the stablecoin into Curve Finance’s ecosystem to motivate users.
Egorov said users could now “obtain fees in a dollar-denominated stablecoin,” a more straightforward and reliable procedure.
