Introducing TONSWAP

The DEX for mass adoption on TON

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 Waifu Tokiko Soramoto

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 will be Telegram mini-app native

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 when bridging to the SORA v3 Hub Chain, which will also feature extremely cheap gas fees.

SORA v3 Featuring 2s block times

• TONSWAP will be built on the SORA v3 Hub chain, which uses the multithreaded and scalable architecture of Hyperledger Iroha v2, written in high-performance Rust. Its Sumeragi voting-based consensus algorithm will provide fault tolerance and finality for tens-of-thousands of transactions within 2 seconds, providing TONSWAP users with an experience closer to trading on a CEX than current DEXs.

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. Using the SORA v3 Hub Chain is our secret weapon here, as we will be able to query the Hyperledger Iroha v2-based blockchain nodes directly for data, without resorting to centralized middleware that spies on you.

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 v3 Hub Chain), 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 the upcoming SORA v3 Hub Chain network, which has its own L1 network and technology, while being closely integrated with TON. The aim of this hybrid solution is to have the best parts of the TON network and technology, while preserving the highest level of focus on building a thrilling DeFi app.

To create the greatest user experience and market differentiation, TONSWAP needs to be built on a scalable and robust platform that allows smart contracts that then connects to TON. The SORA v3 Hub Chain Network will fulfill this need seamlessly. As far as user experience is concerned, you won’t realise what chain you are operating on, but in the bigger picture, this doesn’t matter. Interoperability between networks is the future and this is the first step.

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. Besides TONSWAP, 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.

This faster consensus of Hyperledger Iroha v2 will provide a better UX, with an experience closer to the speed of CEXs for TONSWAP users, while the overall SORA v3 Hub Chain architecture allows for virtually limitless composability between chains and ecosystems.

SORA 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.

Mass DeFi adoption is on the horizon.