The TON Foundation, a nonprofit organization supporting the development of The Open Network (TON) blockchain, has announced a partnership with Curve Finance, a decentralized exchange (DEX).
The partnership will collaborate to “incubate a new TON-based stable swap project” to improve user experience and stablecoin trading on the TON blockchain.
The TON-based swap project will use Curve Finance’s Constant Function Market Maker (CFMM) technology, known for minimizing the price impact on stablecoin and equivalent asset swaps.
In a written Q&A with Cointelegraph, Vlad Degen, DeFi lead at TON Foundation, explained the implications of the CFMM tech integration.
“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.”
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CFMM integration on TON
According to a press release shared with Cointelegraph, the CFMM formula allows stablecoin swaps with reduced price volatility and lower slippage, resulting in more efficient asset exchanges.
Currently, projects seeking the use of Curve Finance’s CFMM technology must acquire a license, making stable swaps on TON through the new project a notable feature of the partnership.
“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.”
Related: Curve Finance reduces CRV emissions, boosting DAO sustainability
Project selection process
The TON Foundation and Curve Finance will be selecting “an independent team” to develop the stable swap project through a “public and transparent” process.
“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 selected team will have the “permission to implement Curve Finance’s stable swap formula into their project” with an allocation of the new project’s tokens airdropped to qualified users.
Related: Curve Finance's Michael Egorov says $10M in bad debt fully paid
The stablecoin curve
In addition to this latest partnership, Curve Finance made a shift toward its native stablecoin crvUSD on June 28 in a fee distribution mechanism change from the 3cr token.
The transition aimed to improve the utility of crvUSD and the integration of the stablecoin into Curve Finance’s ecosystem for incentivizing users.
Egorov told Cointelegraph at the time that users would “now obtain fees in a dollar-denominated stablecoin,” a simpler and more stable process.
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