Content sponsored by TON Swap
Free TON is the continuation of the blockchain project initially developed by Telegram, which was left in the hands of the community. Now, with a more established ecosystem, this project has introduced TON swap, a DeFi platform that promises decentralized exchanges within the TON network, with very low commissions. In this article, we will discuss everything about this exchange platform.
In addition, Free TON has a protocol that allows interaction between the TON network and Ethereum in a simple way known as TON Bridge, powered by Broxus, a blockchain solutions lab and member of Free TON DeFi Alliance. The bridge basically enables exchange from the Metamask wallet (Ethereum network) to the Crystal wallet (TON network) and vice versa. This bridge mitigates the risks of increasing congestion, high transaction time and high fees, and thus makes TON Swap a very interesting alternative.
What is TON Swap
is a decentralized exchange or DEX that allows its users to perform DeFi liquidity provision and yield farming operations with tokens belonging to the Free TON network.
Its development occurs almost a year after the
launch of the Free TON project, which revived the blockchain abandoned by Telegram called Telegram Open Network and without the explicit collaboration of this messaging company.
With the TON Swap exchange, as expressed on its own website, it seeks to offer exchanges between tokens much faster and cheaper, since, compared to Ethereum, the network fees are just 0.01 USD as of the date of this review.
is the name of the wallet that will allow you to use TON and all Dapps built on top of this network. This wallet is to the Free TON blockchain what Metamask is to the Ethereum blockchain and allows you to manage your seed phrase, public and private keys and wallets securely without leaving your favorite browser.
. The wallet has a 12-word seed phrase for secure login.
Once installed you can start using TON Swap services. Its installation and usage is completely unchanged from any other cryptocurrency wallet you may have used in the past, so it’s frictionless.
TON and WTON, platform tokens
If you’ve had the opportunity to interact with any DeFi or DEX platform, you’ll have noticed that pa
To exchange Ether (ETH) or the network’s native cryptocurrency, you don’t use ETH directly, but an ERC20 token anchored 1:1 with the value of the ETH known as WETH or “wrapped” Ether.
In TON it’s basically the same thing. The network’s native cryptocurrency is called TON or TON Crystal. However, to interact on TON Swap, or any of the Dapps built on top of the network, you must trade with a TIP3 token (acronym for TON tokens) anchored to the 1:1 TON known as WTON.
If you want to convert TON to WTON or vice versa, you must go to the WTON.io
page. The exchange process is quite simple, as you just enter the amount to exchange and confirm the transaction from your Crystal wallet. The cost of the swap is 1 TON.
TON swap and its exchange experience
uses a design pattern very similar to those that can be found in several decentralized exchange platforms such as UniSwap. The main window is made up of a single box in which users must place the token to send and receive, confirm the transaction from their Crystal wallet and that’s it. Interface comparison of UniSwap and TON Swap. Source: UniSwap/TON Swap.
The user experience, being very similar to applications already known in the cryptocurrency ecosystem, is very fluid. Another plus point is in the commissions and the speed of confirmation. In the test performed by us exchanging a total of 4 TON for USDT, the fees were 0.004 USD and it was done almost instantly.
The network fees are much lower than what is currently handled on the Ethereum network. Although block times on Ethereum are 15 seconds, due to the congestion it currently suffers from fees can be above 10 USD per transaction to ensure entry into the next blocks.
Liquidity provision in TON Swap
The liquidity of decentralized exchanges like TON swap is provided directly by the community. The more users, the more liquidity, which in turn translates into better exchange rates.
At the time of writing there were 16 tokens available on TON Swap, including widely used tokens like USDT and USDC, and even WETH and WBTC, which gave me a nice feeling of security and freedom to trade.
The system is quite simple: to add liquidity you need to do it in trading pairs. The purpose of this is that the deposit does not affect the liquidity of the market. After confirming the provision of liquidity in the Crystal wallet, you receive a receipt specifying the amount of LP tokens you will receive in return.
The profitability of the liquidity provision depends on the share of the total amount deposited with respect to the total pool in 24 hours and the profit.
is obtained in LP tokens. 1.69 LP tokens in our case.
Receipt of confirmation after providing liquidity. Source: TON Swap.
Farming in TON Swap
is the mechanism that allows users to generate profit in the TON Swap platform token by staking LP tokens in the chosen pool. Its operation is based on depositing in a smart contract the LP tokens that are generated through the liquidity pools. TON Swap profitability table. Source: TON Swap.
This tool offers much higher interest rates than the liquidity supply can offer. In the image you can see farming pools, such as WTON-USDT that offer up to 177% annual interest.
It is worth remembering that farming is only done through LP tokens. The benefits of TON Swap farming can be quite profitable thanks to the good interest rates it integrates. In addition, liquidity providers earn trading commissions that represent 0.3% of the volume with respect to their share in the group.
How much liquidity does TON Swap have
As we mentioned before, the liquidity of this type of market depends a lot on the mass of users. Although this platform can be considered “new”, it handles quite considerable trading volumes and with very good exchange rates.
Trading pairs liquidity table. Source: TON Swap
From the Pairs
section you can track the total volume of each market. One of the most used is the WTON/USDT market, which has a Total Locked Value (TVL) of over 5 million dollars, with daily volumes over 300 thousand dollars. In total, TON Swap has an exchange capital (TVL) above $16 million, as of publication date.
Use Ethereum in TON Swap with Bridge
Ethereum is, par excellence, one of the most widely used networks in terms of Dapps. While Binance’s Smart Chain network has <a href=”https://www.criptonoticias.com/mercados/binance-smart-chain-supero-
making the rates rise drastically.
Thanks to the Bridge protocol
, users can switch from Ethereum to Free TON exchanges, with much lower fees and confirmations.
This TON Swap bridge facilitates interoperability between blockchains, allowing you to connect your TON Crystal wallet with your Ethereum Metamask wallet. You can use wallets like MetaMask, WalletConnect and others that support ERC20 tokens to transfer them to the TIP3 token standard on the Free TON blockchain. This makes TON Swap a very attractive option to use instead of Uniswap.
The remarkable thing about this bridge is its ease of use. Just connect the two wallets, Crystal and Metamask, and you can immediately send between networks. This process does not require any commission payments besides those charged by the network.
Interface for exchanging WTON from Ethereum to TON. Source: TON Bridge.
This system allows an easy adaptation to the TON Swap platform for users accustomed to using platforms like UniSwap.
At first I thought that
operated on a network other than Ethereum, on which the major DeFi platforms operate, this platform would not be a “direct” competitor to UniSwap or any other. However, the integration of tools like Bridge make it very attractive and a potential competitor to all of them, as long as it increases its mass of active users.
Although at the beginning and only once when configuring it, it may seem a bit complicated, then its use becomes very simple and intuitive. The operation of providing liquidity and farming is very easy and fluid thanks to a very intuitive interface, which makes it very attractive to users of any level of expertise.
In terms of usability TON Swap is, all in all, an excellent exchange. Very fast exchanges, almost instant confirmations. Low commissions. And all this from a fully decentralized platform, no coins in custody or anything like that.