Addressing the critical challenges of the DeFi ecosystem, STON.fi seeks to provide efficient cross-chain transactions without relying on wrapping and bridging.
Decentralized finance (DeFi) eliminates dependence on intermediaries, offering users greater control over their assets compared to traditional models. However, the lack of interoperability between blockchain networks restricts access to the innovative trading opportunities that DeFi offers.
Users have to rely on third-party services when transferring between blockchains. Entrusting their assets to third-party custodians may expose users to security breaches during the transaction and risk losing their assets. Additionally, converting crypto assets can be costly and security procedures may delay or interrupt transactions.
On the other hand, a multichain structure could add unique value to the Web3 space by providing users with a convenient way to transact tokens between networks without the need for an additional service.
Cross-chain swaps without bridges and wrapped tokens
STON.fi, a decentralized exchange (DEX) on The Open Network (TON) blockchain, is set to introduce tools to address cross-chain swap challenges. TON blockchain is a decentralized platform originally developed by a team led by the founders of Telegram, a cloud-based instant messaging app with over 900 million users.
Boasting a total value locked (TVL) of more than $200 million and over $600 million in trading volume, STON.fi is designed for easy integration with TON wallets, such as Tonkeeper and TON Space. These integrations enable the trading of any TON-based token.
To ensure minimal price impact and slippage, the DEX uses a liquidity pool model consisting of funds made up of assets that multiple users lock into smart contracts — self-executing agreement codes. Assets accumulated in these pools enable instant transactions without relying on the traditional buyer-and-seller market.
In addition, the platform offers advanced functionalities, including farming and staking. Farming allows users to earn rewards by providing liquidity, while staking enables users to earn by locking their assets to support network operations.
STON.fi eliminates the need to use wrapped tokens and bridges for cross-chain transactions. Source: STON.fi
The platform will allow cross-chain swaps by eliminating the need for wrapped tokens, which represent the base token on another blockchain, and bridges — connections that facilitate transfers between blockchains.
To eliminate the need for intermediaries in cross-chain transactions, STON.fi uses a request for quote (RFQ) — a process where a buyer requests pricing and terms from a seller — combined with hashed timelock contracts (HTLC), which are smart contracts that lock a transaction until specific conditions are met.
In RFQ-based protocols, traders express their intention to swap one asset for another by sending an RFQ to professional market makers (PMMs). The PMMs respond with signed quotes that detail the swap rate and other conditions. The protocol then selects the best quote based on predefined criteria and presents it to the trader.
HTLC protocols, also known as atomic swaps, ensure that both parties receive the intended assets or the transaction fails. If any participant behaves dishonestly, the transaction is canceled and all parties get a full refund of their assets.
Making DeFi fair for everyone
STON.fi achieved an important milestone by listing the TON-based Tether (USDT) and launching NOT, the token of the popular Web3 game Notcoin, which has over 35 million players.
📢 https://t.co/FWINlY7Lnn Leads in Notcoin Activity on TON
— STON.fi (@ston_fi) May 31, 2024
On March 16, immediately after the launch, $NOT became available for trading and #liquidity provision on STONfi.
Since the launch of NOT:
✨ the #trading volume in both pools for NOT has exceeded $6,385,500. STONfi is… pic.twitter.com/lGkfki9YZj
The platform also secured investments in an undisclosed funding round led by CoinFund with contributions from Delphi Ventures, Karatage and TON Ventures. Notable individuals also participated, including LI.FI CEO Philipp Zentner and 1inch co-founders Sergej Kunz and Anton Bukov.
Stating that these strategic moves align with STON.fi’s broader vision, CEO Slavik Baranov noted that they are working to ensure that Telegram users can swap tokens securely between networks without third parties, adding:
“STON.fi exists to make it simple and fair for everyone to access DeFi as easily as they use Telegram.”
Ensuring interoperability in asset transfers will make the DeFi environment more inclusive and efficient. As more platforms enable secure asset trading across different networks without complexity, the decentralized space is poised to gain greater value and accessibility.
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