TON Foundation Invests $24M to Boost DeFi Sector

The TON Foundation, a non-profit organization backing The Open Network (TON), has earmarked 5 million Toncoin (approximately $24 million) for the network’s decentralized finance (DeFi) incentive program.

TON Foundation launches a massive 5M Toncoin rewards program aimed at driving deeper liquidity for TON's #DeFi ecosystem and boosting adoption of #USDt-TON 💎
The program collaborates with leading DeFi projects like @ston_fi, @dedust_io, @tonstakers, and @bemo_finance

More 💰⬇️ pic.twitter.com/VbvpgeUI0y

— TON 💎 (@ton_blockchain) September 6, 2024

Initially launched in April with 11 million Toncoin, now valued at nearly $53 million, the incentive program aims to increase user participation with DeFi applications on the TON blockchain. The latest contribution of 5 million Toncoin brings the DeFi program’s total value to 16 million Toncoin ($77 million).

Boosting the DeFi Sector

The additional funds will be directed toward rewarding liquidity providers on STON.fi and DeDust, two leading automated market maker (AMM) platforms on the TON blockchain. Users who supply liquidity to TON-USDT, tsTON-USDT, or stTON-USDT pools—pairs of Toncoin and Tether (USDT), as well as staked versions of Toncoin—will be eligible to receive TON rewards.

According to the Foundation, the incentive program seeks to create favorable conditions for liquidity providers while encouraging the growth of farming strategies on TON.

TON’s expansion from supporting Telegram mini apps to becoming a full-fledged DeFi ecosystem has been significantly supported by Tether’s integration with both Toncoin and the Telegram Wallet app in April. This integration allows users to hold funds in a stable currency tied to the United States dollar.

TON’s Growth Amidst Challenges

Toncoin’s price has seen substantial volatility in recent days. At the time of writing, Toncoin is valued at $4.80, reflecting a 27% decline over the past two weeks. Contributing factors include the recent arrest of Telegram CEO Pavel Durov in France, which stems from accusations related to Telegram’s non-cooperation with law enforcement and intermittent network outages.

Despite these setbacks, the TON ecosystem has grown considerably throughout the year. On-chain data shows that TON has close to 52 million addresses with a balance, placing it among the most active blockchains. Additionally, a report from CoinTab noted that the network hit 1.1 million daily users, driven in part by the launch of the memecoin DOGS, which now has over 2.19 million unique addresses holding a balance.