Through the collaboration, TON will have access to Curve Finance’s CFMM technology, which optimizes stablecoin swaps by lowering price volatility and slippage.
Curve Finance, a decentralized exchange (DEX), and The TON Foundation, a nonprofit supporting The Open Network blockchain development, have announced their alliance.
The cooperation aims to enhance user experience and stablecoin trading on The Open Network blockchain by working together to “incubate a new TON-based stable swap project.”
The Constant Function Market Maker (CFMM) technology from Curve Finance, renowned for reducing the price impact on stablecoin and comparable asset swaps, will be employed in the TON-based swap project.
Vlad Degen, The Open Network Foundation’s DeFi lead, outlined the consequences of the CFMM tech integration in a written Q&A.
“By integrating Curve’s CFMM technology, The Open Network can make trading much more accessible to those who might not already be fully embedded into the ecosystem.”
Integration of CFMM on TON
A news release provided states that the CFMM formula enables stablecoin swaps with minor slippage and less price fluctuation, making asset exchanges more effective.
Since licenses are currently required for companies wishing to utilize Curve Finance’s CFMM technology, consistent swaps on The Open Network through the new initiative are a noteworthy aspect of the relationship.
“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.”
Procedure for choosing a project
Through a “public and transparent” procedure, “an independent team” will be chosen by the TON Foundation and Curve Finance to build the stable swap project.
“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 chosen firm will be allowed to “integrate Curve Finance’s stable swap formula into their project,” and eligible users will get an airdrop of the new project’s tokens.
The stablecoin curve
With this most recent collaboration, Curve Finance changed its fee distribution mechanism from the 3cr token on June 28 to its stablecoin, crvUSD.
The change was made to make crvUSD more useful and incorporate the stablecoin into Curve Finance’s ecosystem to reward users.
At the time, Egorov said that customers would “now obtain fees in a dollar-denominated stablecoin,” which would be a more straightforward and reliable procedure.