Blockchains, such as TON, enable people to manage their money without intermediaries such as banks or governments. Decentralized finances (DeFis) are the financial infrastructure built with the usage of smart contracts, where all financial operations are encoded and executed automatically. Let’s look at the peculiarities of the TON blockchain, its DeFi app examples, and how to distinguish the trustworthy ones.
Introduction to DeFi on TON
The Open Network (TON) blockchain is the network originally created by Pavel Durov and his brother Nikolai, who also created the popular encrypted messenger Telegram. Now, it’s actively developing by the TON Foundation.
Originally an application for secure peer-to-peer communication, Telegram evolved into an informational ecosystem with channels, groups, communities, and, eventually, applications. They can be developed and published via Telegram using its interface. This functionality was originally intended for chatbot creation, but modern Telegram apps vary from mini-games to business analytics tools.
TON is a programmable blockchain, integrated with Telegram, so it’s possible to create decentralized applications (dApps), from financial instruments to mini-games. These types of applications are the most popular ones nowadays. All these apps can then be accessed using Telegram, while most also have the web version.
An example is the liquidity pools of STON.fi, one of the popular TON DeFi applications.
Source: STON.fi
Therefore, for those who search for DeFi apps, TON can be a good choice. Let’s see why.
Why use DeFi on TON blockchain?
Due to the specific character of TON, its apps may be much easier to use than those on other chains. Unlike them, TON apps can all be found in the Telegram messenger, with a global user base of almost 1 billion people. It means that compared to Solana and Ethereum, all TON apps are united in a single hub, where they can be easily published and accessed.
Let’s summarize:
- TON is integrated with Telegram, so it’s possible to use TON DeFi dApps as Telegram miniapps and transfer funds between Telegram accounts quickly.
- TON is designed to have very cheap transactions, usually several times cheaper compared to Ethereum or Tron.
- TON blockchain capacities and community offer many opportunities for Web3 builders to realize their ideas, even while remaining anonymous.
With all these benefits, users can manage their money just in their messenger, while feeling safe about them and participating in various community activities.
Top TON DeFi platforms
The best TON DeFi projects are those where you can trust your money and be sure that no one will take it away. A blockchain platform ensures that all transactions, swaps, and yields are automated and users don’t need to rely on someone’s trust.
However, these tools are still managed by people and work for people. There can be problems when they have bad intentions, so it’s important to check whether the platform is trustworthy. Later in the article, we’ll try to overview how to distinguish such dApps and what characterizes them.
Here is a list of five TON platforms, which can be characterized as good to use.
- Bemo is a TON staking application, where users can stake starting from 1 TON, with dynamic earnings, rewards, and stTON as collateral, which then can be used in other DeFi platforms for trading and earning.
- Hipo, similarly, is a staking app that enables liquid staking with hTON as collateral, with dynamic APYs up to 3%. It’s beneficial to check both platforms and see which tokens are more beneficial in the current moment.
- STON.fi is a decentralized exchange with various liquidity pools, where users can earn passive income by staking various TON tokens in them. Their APR (annual percent rate) may be very different and depends on the trading intensity.
- DeDust, similarly, provides liquidity pools with various APR, where users can select the most beneficial ones and stake tokens, earning profits from trading fees. As with staking apps, it’s general advice to check various options to diversify profitability.
- EVAA Protocol is a lending platform on TON, where users can borrow and lend TON using various tokens as collaterals. Such platforms offer the opportunity to get money for project funding and earn lending interest but are much riskier due to liquidation risks if a loan cannot be repaid. It provides a detailed guide and responsive community, so it’s recommended to become familiar with them.
As an example, one can see the EVAA Protocol dashboard below.
Source: EVAA
It shows how one can borrow TON on collateral, while the user’s Health Factor regulates how trustworthy they are. Users can lend money to those with high Health Factors, which increases the chance of earning their interest. It’s similar to the credit rating in ordinary, centralized financial organizations while removing the intermediary is beneficial for both borrowers and lenders.
Key features of leading DeFi TON projects
All these projects have certain features that indicate their trustworthiness.
- Transparent operations mean that app builders are open to their users, post updates regularly, and handle all their questions. It also helps them build an efficient community around the product.
- Clear documentation is essential for every dApp, even as simple as a staking application with a single app screen. It also helps developers interact with each other, using their app’s functionalities in other products.
- A vibrant community indicates that the project is active and everyone can ask for help or share their activity with others, so it’s important to check the community of the application when using it.
To establish a strong DeFi on TON brand, application builders need to establish a robust, transparent community of users who benefit from the app. While Telegram groups are often vulnerable to spammers and scammers, it’s still possible for a trustworthy app’s users to ask for help and find any information.
How TON blockchain enhances DeFi functionality
Let’s look at security challenges and how they can be solved.
Security and performance of DeFi on TON
The TON blockchain has high performance, but its most important feature is its small transaction fees. For example, transferring USDT on TON is 2–3 times cheaper compared to USDT on TRC-20. Such small fees, along with the Telegram integration and high level of anonymity made the network very popular for NFTs, memecoins, and tap-to-earn minigames.
The most common problem of TON applications and Telegram communities is a high risk of spam and fraud. Being essentially an anonymous messenger, you cannot know who is contacting you when using it. Many open communities in Telegram are overloaded with spam and fraudulent offers, and some Telegram apps may lead you to fraudulent websites, which can steal your funds.
The solution is to use projects with vibrant communities and transparent builders, who post updates regularly, as we’ve indicated above.
The future of DeFi TON projects
As Telegram continues to develop, The Open Network user base is growing. Telegram starts to take action to reduce opportunities for scammers. Its communities also learn to filter them, becoming safer places, where people can focus on their interests. Therefore, DeFi TON tools are in active development now, and new players may arise in the near future.
One can see how rapidly the TON’s TVL (total value locked) increased in 2024, from a negligible $20–30 million to more than $500 million at its peak.
Source: DefiLlama
As one of the fastest-growing ecosystems, it can be compared to Sui, which almost doubled its TVL in the last several months, and is now larger than $1 billion. The unique point here is that TON projects have Telegram as the hub where they can be published and accessed, which makes it easier to participate in the ecosystem. It stimulates
Now, however, the TON ecosystem stagnates, as one can see on the diagram. After Pavel Durov’s arrest in France in late August 2024, and as the Telegram mini-games hype decreased, TON’s TVL fell greatly. Still, it’s the stabilization phase, which is inevitable after the initial rapid growth, and the TON value is still much larger than before 2024. Therefore, the ecosystem will probably rise in the future, solving its issues with fraud risks and developing existing tools.
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