Introducing TONSWAP
The DEX for mass adoption on TON
TONSWAP is a decentralized exchange that is being built on The Open Network (TON), designed to facilitate seamless token swaps and liquidity provision within the TON blockchain ecosystem. By harnessing TON’s scalable architecture and vast user base, TONSWAP is poised to deliver a fast, user-friendly DeFi experience. (At launch, KUSD — a USD-pegged stablecoin — and XOR will serve as the primary base trading pairs on TONSWAP, anchoring liquidity and pricing on the DEX.)
Many people find DeFi hard to use on TON. TONSWAP simplifies this by operating within TON’s ecosystem (which boasts access to hundreds of millions of users via Telegram) and offering very low gas fees. Read on to discover how TONSWAP’s new TON-based approach makes crypto simple for you.
TON is democratizing access to crypto by integrating wallets and mini apps directly into Telegram. There are now over 100 million users in the TON ecosystem and this is rapidly growing. Miniapps, tap-to-earn games, and even pray-to-earn games, are getting tens of millions of users. However, DeFi on TON is still nascent, with the top two DEXs combined only accounting for around $35 million of volume per day. For comparison, Ethereum sees around $2.7 billion volume per day for the top two DEXs and Solana is around $3.9 billion per day for their top two DEXs. This suggests that there is a mismatch between TON users and TON DeFi activity, which points to a market opportunity for potential, untapped growth.
DeFi is Just Getting Started
Outside the TON ecosystem, DeFi looks bullish AF. Active DeFi wallets have more than doubled this year from 50 million in January to 120 million in November. This substantial growth in active wallets is further complemented by the robust trading activity occurring on decentralized exchanges (DEXs). Weekly DEX volume has now reached a staggering $53 billion, spread across the entire DeFi ecosystem. This figure not only highlights the increasing liquidity and trading interest in decentralized financial platforms, but also underscores the growing confidence of users in these innovative financial systems.
The on-chain activity paints a picture of a DeFi sector that is not just expanding, but thriving. The rapid increase in both user adoption and trading volume suggests that DeFi is moving beyond its niche beginnings and is on the cusp of broader mainstream acceptance. This trend indicates a bullish outlook for the future of decentralized finance, with potential for even greater growth and innovation in the coming years.
TONSWAP vs Other DEXs
The recent surge in DeFi use is not yet happening in the TON ecosystem, however. Despite boasting a large number of users (over 100 million wallet addresses) and a volume of $10B with a market cap of $14B, DeFi on TON represents less than 1% of the total DeFi trading volume (about $200 million weekly vs $53 billion weekly). The main DEXs in the TON ecosystem today are extremely bland and uninspiring user experiences. The DEX names are also hard to associate with TON and even harder to remember: DDUST and STONFI.
In other ecosystems like Ethereum or Solana, Uniswap, Curve, Jupiter, and Raydium are actually doing pretty well, but they are still geared toward the old 2020 DeFi-style of interaction and not tailored towards the hip and mobile crowd like you find on Telegram. Given the natural interaction and usability from connecting your wallet and trading in a Telegram mini app, we propose TONSWAP as the go-to, on-the-go liquidity source that has a Telegram-native interface.
TONSWAP’s Secret Weapons
Multitude of TON tap-to-earn coins
- Tap-to-Earn Games: Over 3,200 Telegram game projects (as of June 2024) are in the market according to Footprint Analytics, which is now likely over 6,400 games. The trend of idle tap-to-earn action is only increasing, and this phenomenon, born in TON has also spread to other blockchains seeking to cash in on the craze. Although the games are as different and as varied as the road to enlightenment or running a cat café, the one thing they have in common is the reward in tokens for your tapping time.
- With almost 500 games officially listed in the TON app gallery, you will be able to find your favorite tap tap tokens (or Jettons as they’re known in the TON ecosystem) here, from Dogs, NOT, Hamster, and Cats, to everything in between. With TONSWAP you will be able to manage and trade your favourite and hard-earned Jettons — the options are truly endless!
User potential
- Telegram Users: As of July 2024, Telegram reported that around 66% (500 million) of its 950 million users interact with mini-apps monthly. The top tap-to-earn game, Hamster Kombat, had 300 million users at its peak and the TON app library has almost 500 games. Telegram remains the main form of communication within the crypto world and more people are drawn to the platform thanks to the innovative features, the plethora of meme stickers, and constant updates, as well as privacy (to some extent) which you won’t find in other platforms (unless there is a warrant for your information).
Low gas fees
- In spite of the several transaction fee elements included, Tonswap will provide extremely low gas fees even when interacting with external networks, allowing you to enjoy The Open Network’s low transaction costs.
Robust infrastructure with detailed analytics
- TON analytics experience is currently very bad… despite the high market cap, the user experience of TON-based apps leaves much to be desired. TONSWAP’s stylish yet intuitive analytics will provide you with all the information you require, while still being so user friendly and easy to use that even your grandma can become a seasoned trader.
Invoicing + Bridge to Fiat
- Telegram is everywhere, with a Billion users. We think a good portion of these users may have businesses or do other activity where they want to get paid. By building a simple invoicing system into the TONSWAP mini app that allows users to request funds in any currency they want, with users who pay invoices automagically getting their funds converted using TONSWAP, we will drive transaction volume on the DEX and also give people yet another reason to use the telegram miniapp.
SORA Card users: Spend and buy your TON via XOR
- SORA Card is an exciting initiative to link self-custodial crypto wallets with regulated banking services (similar in concept to RegDeFi). Users open an IBAN account and ability to move between self-custodial crypto and fiat in the bank, which is linked to a debit Mastercard and usable all over the world. TONSWAP will be able to provide a link to swap to XOR for SORA Card users to allow them to instantly swap their crypto into fiat on their card.
The $TS Token
TONSWAP will have 0.3% trading fees per transaction, like other DEXs. Trading fees are used to buy back and burn TS tokens and new TS tokens are minted to reward LPs. Rewards to liquidity providers start at 80% of burned trading fees and gradually reduce to a flatline at 35% of daily burned tokens after 5 years (making the token hyper-deflationary). 20% of the daily burned amount of TS will be used to vest strategic liquidity incentives. There will be 100 million TS minted to start, with the supply decreasing through use of the DEX.
TS tokens are planned as a fair launch, with the following tentative distribution:
- Farming and airdrops will be 50% of the supply. These tokens will be claimable pre-launch for users to receive if they want.
- Marketing and education will have an allocation of 10% right out of the box. It is important for everyone to know TonSwap and understand what makes it special. No investment advice here. To build community and goodwill with the SORA community (because TONSWAP will use the SORA XOR and Kensetsu USD tokens), Polkaswap PSWAP token holders will be able to burn their PSWAP tokens to convert to TS, if they so choose. Details will be announced at a later date.
- The team bringing TONSWAP to life will receive 10% at launch. This allocation will be unvested and ready to buidl the ambitious roadmap set forth.
- Market makers matter, that’s why 30% of the initial distribution will be destined to liquidity incentives for the first three years, with 10% per year.
(It is important that you do your own research before using your money. This content is for informational purposes only and is not any investment advice.)
TONSWAP and SORA
TONSWAP will be built on TON (The Open Network) and will have a bridge to the upcoming SORA v3 Hub Chain network, which has its own L1 network and technology.
To create the greatest user experience and market differentiation, TONSWAP needs to be built on a scalable and robust platform, and TON fulfills that need.
What is SORA?
SORA is the Supranational Output Rationalization Alliance and is built around a group of countries using the SORA v3 Hub Chain, which runs the Hyperledger Iroha v2 blockchain framework. The SORA v3 Hub Chain is hosting a savings bond system for the Government of Palau, central bank digital currency systems for central banks, and the SORA decentralized economic system.
The SORA decentralized economic system is aimed at creating a new world economic order built around the principles of collaboration and sustainable high growth. The goal of SORA is to create a better form of money, not based on debt or usury, that allows humanity to reach its full potential, and it is based on the Japanese postwar high-growth model, also known as the disaggregated quantity theory of money.
SORA NEO: The New Economic Order: SORA acts as an autonomous virtual state, governed in the future by holders of XOR via multi body sortition, where token holders can vote on creating and allocating new tokens for productive uses within its ecosystem. The project has evolved based on macroeconomics research and the latest DeFi possibilities, powered by the most advanced technology.
SORA v3 Architecture
The SORA v3 Hub Chain Network uses Hyperledger Iroha v2 and includes bridges to many other blockchains, such as Ethereum and Bitcoin, as well as the blockchain-managed country of Liberland and the Polkadot social experiment. The SORA v3 Hub Chain network will have its own set of validators as an independent L1 network.
The SORA v3 Hub Chain Network will provide open source bridging code to TON compatible with any Hyperledger Iroha v2 network. This framework will standardize a direct and secure interaction between blockchain networks using Hyperledger Iroha v2 and TONSWAP and the SORA network.
The SORA TON bridge is quite an innovation for the TON ecosystem, providing a new framework by which to build bridges connected to the open source Hyperledger Iroha v2 framework, which we believe could become a new standard. This means that any user of Hyperledger Iroha v2 (such as some enterprise or government use cases) will also be able to take advantage of the TON bridge, right out of the box, and be able to communicate with any major TON asset (imagine paying your taxes in $HMSTR). This makes it trivial to move assets between many contemporary use cases and the TON ecosystem as a whole.
Using TON for TONSWAP will provide a better UX, with an experience closer to the speed of CEXs for TONSWAP users, while bridging to the SORA v3 Hub Chain will allow important connections to the SORA decentralized economic system and central bank digital currency platforms. This can potentially position TONSWAP to play an important role in providing global liquidity.
TONSWAP is the Future, Interoperable Hub of Global Finance
TONSWAP is currently under construction and will be live when ready. To follow TONSWAP’s progress, join our Telegram and get involved in the movement.
TONSWAP’s launch on TON will usher in a new era for DeFi on The Open Network. By leveraging TON’s highly scalable and fast blockchain, TONSWAP is able to offer extremely low fees and near-instant transactions to users worldwide. Over 500 million Telegram users will soon be able to access crypto trading easily through TONSWAP’s intuitive interface, lowering the barrier for mainstream adoption of DeFi. Building directly on TON ensures that transactions remain quick and cheap natively, thanks to TON’s powerful infrastructure and sharding capabilities.
The integration of SORA’s ecosystem assets — notably KUSD and XOR as base pairs — and SORA Card fiat gateway (for SORA Card users) means TONSWAP also serves as a bridge between TON and other networks and the traditional financial system. Users benefit from the liquidity and stability of a USD-pegged stablecoin and a direct off-ramp to fiat, all within the decentralized framework of TONSWAP. This cross-ecosystem collaboration is likely to strengthen TONSWAP’s position in the market, attracting users from both the TON community and the SORA community.
With its reward-driven liquidity programs and partnerships in the gaming space, TONSWAP is set to boost overall DeFi activity on TON. We expect to see TONSWAP expand the TON DeFi ecosystem and reach new heights as more users come on board. As TON continues to integrate with other networks and Telegram’s Web3 features grow, TONSWAP stands to become the central hub of liquidity — not just for TON, but potentially connecting value from across many chains.
In summary, TONSWAP combines the strengths of TON’s technology (scalability, speed, security) with a user-centric approach (Telegram integration, low fees, fiat access) to create a DEX designed for mass adoption. It represents a significant leap forward in making decentralized finance accessible, fun, and practical for the next wave of crypto users. The future looks bright for TONSWAP as it leads the charge in bringing DeFi to the masses on TON.
Mass DeFi adoption is on the horizon.
FAQs
1. What is TONSWAP?
TONSWAP (https://tonswap.org/) is a decentralized exchange (DEX) built on the TON blockchain. It allows users to trade cryptocurrencies in a non-custodial, peer-to-peer manner directly within the TON ecosystem (for example, through a Telegram mini-app). TONSWAP provides an easy and secure way to swap tokens, provide liquidity, and earn rewards, all while benefiting from TON’s fast and low-cost network.
2. Why choose TONSWAP for trading?
TONSWAP is designed for mass adoption on TON. It offers fast transaction speeds, minimal fees, and a user-friendly interface integrated with Telegram. This makes it ideal for both beginners and experienced traders. Unlike using centralized exchanges, TONSWAP users retain control of their assets at all times. And compared to other DEXs, TONSWAP’s direct TON integration and features like the debit card off-ramp make it especially convenient. If you want a hassle-free trading experience on TON with access to a large community and ecosystem, TONSWAP is a top choice.
3. How does TONSWAP support mass adoption?
TONSWAP lowers the barriers to entry for decentralized finance. By embedding the exchange into Telegram apps directly, it meets users where they already are — no need to navigate complicated Web3 interfaces or pay high gas fees. Its low fees mean even small trades are economically viable, inviting everyday users to participate. The platform also emphasizes security and simplicity, ensuring new users don’t feel intimidated. Additionally, TONSWAP’s integration with popular games and a fiat payment card makes crypto more tangible and useful. All these elements combined — ease of use, low cost, real-world utility — will help drive mass adoption of crypto through TONSWAP.
4. What makes TONSWAP different from other DEXs?
TONSWAP leverages the TON blockchain’s unique strengths to offer an experience that stands out. The TON network’s speed and scalability give TONSWAP an edge in performance, so traders rarely encounter congestion or high fees even during peak usage. TONSWAP also integrates features like the Telegram interface and a link to SORA Card via the TON-SORA bridge, which most DEXs do not offer. This means you can trade in a familiar social app environment and spend your crypto in the real world easily. Moreover, TONSWAP’s tokenomics (fee buy-back and liquidity rewards) and use of XOR and the KUSD stablecoin as base pairs provide stability and long-term sustainability. In essence, TONSWAP combines the best of a fast Layer-1 blockchain with thoughtful product design focused on the user, setting it apart from other decentralized exchanges.
Disclaimer: Cryptocurrency trading involves significant risk and volatility. This article is for informational purposes and does not constitute financial advice. Past performance of any token or network (including TON or SORA) is not indicative of future results. Always do your own research and consider your risk tolerance before participating in DeFi or trading. Use TONSWAP and related financial tools responsibly, and consult with a financial advisor if you have any concerns. Keep in mind that while TONSWAP and the TON network offer advanced features and integrations, there are always risks in smart contract platforms, so never trade or provide liquidity with funds you cannot afford to lose.
