❓ What are stablecoins?

A stablecoin is a cryptocurrency whose value is tied to the value of a specific asset — the US dollar, for example. Stablecoins in the TON network are Jettons, which we have covered in depth in our previous post.

Stablecoins can be a reliable tool for storing assets and protecting them from volatile token price fluctuations.

Why are stablecoins necessary for the development of a blockchain?

Stablecoins allow you to easily manage your assets. Unlike traditional financial instruments, you can conduct transactions and payments quickly and easily, avoiding multiple hurdles. This advantage is especially valuable for international transfers, where stable Jettons can substantially speed up the process while reducing fees and currency exchange costs.

The DeFi market on TON is still in its early stages. We hope that in the future there will be a number of new services that actively employ stablecoins: DEXs for futures trading, lending protocols, smart contract casinos, and others.

How to get stablecoins on TON?

Although The Open Network does not yet have its own stablecoin, it is still possible to purchase stable currencies. The RSquad bridge will help you with this.

In the next few weeks, a bridge will be developed that will allow users to transfer tokens from the Ethereum or BNB Chain networks to the TON network and back. The current TON Bridge will be upgraded with new functionality.

The TON Trustless Bridge is planned to go live in the third quarter. It is a special bridge with unique features, whose security is guaranteed by the blockchain itself. Once it’s released, users will be able to create Jettons on other networks.

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Let’s compare V1 and V2 versions of the Uniswap exchange protocol to facilitate the talk about DEXs.

V1 — allows you to make pairs with a native coin on one side always, and hence follows a disadvantage: all coins are dependent on the native coin. Both Tegro.Finance and TonSwap use this kind of protocol. (ETH in Ethereum, TON in The Open Network.)

? V1 example:

Let’s consider an XCOIN. Put it in the liquidity pool with TON; 10000 XCOIN and 1000 TON. Therefore, 10 XCOIN = 1 TON, and 10 XCOIN = $2.50 at the current exchange rate. Because the coins in the pool have the same value, if TON drops by 10%, so will XCOIN, meaning that 10 XCOIN will cost $2.25.
The worst thing is that the rule applies to every coin on a DEX, and the price decline takes place regardless of any transactions.
Remember that TVL drops the pair worth by 20% when the coin drops by 10%.

V2 — the protocol enables pairing of any asset, including stablecoins, but mind a catch: you must use a wrapped coin (JTON/WTON in TON and WETH in Ethereum).

❕ Key points

The second generation protocol wins over the first generation. In the first example, the tokens are tied to the price of the base asset of TON.

The second generation protocol allows you to link the value of an asset to any other asset, not just a native coin, which makes it more flexible.

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? Wrapped Tokens & DEXs’ protocols

TON, JTON, WTON
V1 and V2 DEX in The Open Network

First, a quick reminder: We work with The Open Network blockchain and its native currency Toncoin.

The glossary of FS Labs can be used to check the spelling. There are numerous projects and notions; this knowledge will assist in better understanding of the inner workings of TON.

? TON — the commonly used abbreviation. It can refer to the name of the blockchain, coin, or ecosystem, depending on the context.

? JTON — a wrapped token designed to work with the DeDust exchange and used to swap for other tokens or liquidity assets within the exchange.

? WTON — a wrapped token that operates in TON Ecosystem and has a similar protocol. It is used on Megaton.Finance and STON.fi.

? It is essential that you learn which protocols are used by DEXs in order to get a better idea of how wrapped and native tokens work.

? DeDust compatible TON Wallets ?

Each decentralized ecosystem has a set of services and wallets for engaging with the network. TON is no exception. These services can be created by various teams and have different interfaces, but they must fulfill certain functions in a particular field.

? A non-custodial wallet is a service that is supposed to provide a safe and secure way to keep assets, in our case, TON and Jettons. Covering the user's needs and providing an intuitive and simple UI are the fundamental features of a high-quality wallet.

Using such a wallet allows you to interact with decentralized services, such as an NFT marketplace or DeDust, our favorite decentralized exchange ☝️

? Attention! You can only connect to DeDust.io using the wallets listed below. You will be unable to use DEX and trade Toncoin for Jettons like $SCALE, $BOLT, and others.

? Tonkeeper — perhaps the most remarkable TON wallet. It’s rumored that this wallet is used by 90% of all users. It supports a built-in browser, and it displays your NFTs. What sets this wallet apart from the competition is its simplicity and speed of exchanges, as well as Wallet-Connect with other sites. Of course, the biggest appeal of the wallet is its interaction with the TON Diamonds NFT collection. ?

? Tonhub — the project of the Ton Whales enterprise, it is more basic and plain. At the time of writing, the wallet doesn’t have a browser or the NFT display function. However, it offers a variety of additional benefits! Tonhub includes built-in staking, so you can transfer coins directly from the app. Besides, users can manage LP tokens on Tonhub and transfer them to other wallets. In comparison, Tonkeeper does not support such a feature so far.

? MyTonWallet — another wallet with built-in perks, it boasts features the previous projects don’t have. The perks include support for TON DNS and TON Proxy, as well as the ability to create and easily switch between various TON wallets from within the app.

? JUSTON — a wallet that can generate and import multiple accounts and is capable of synchronizing with the TON network without involving centralized middleman services. If you know a wallet's public address, it won’t be much of a problem to learn every other thing about that wallet too. Finally, DeDust has been integrated into the wallet for lightning-fast swaps.

? OpenMask — a browser extension with TON support that allows you to access dApps (decentralized apps)! This app is The Open Network’s equivalent of the MetaMask wallet. OpenMask supports Jetton, NFT, TON DNS, TON WWW, TON Proxy, and TON Sites.
The Jettons’ price in the wallet will be based on DeDust data.

As we can see, developers are attempting to provide the most diverse application features in order to entice users and allow them to choose a wallet based on their needs.

To summarize, we should point out that DeDust is compatible with any wallet created on TON. ?

Don't forget the most important thing: your seed phrase is valid throughout all TON Blockchain wallets.

To engage with DeDust.io, choose a confirmed wallet by visiting ? ton.org/en/wallets.

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Tonwhales

Ton Whales - Mining pool, Ton staking, Wallet, Blockchain explorer

? Creating & Managing Jettons.

Users who have recently joined TON or have been long-time members may have noticed that it is now the Jettons era. Each day that goes by, there are more and more of them. Jettons’ hype began with the listing of DeDust.io on CoinMarketCap and has been on-going ever since, continually flowing into numerous new Jettons' offshoots.

Jetton — a token built on The Open Network.

? How to create your own token?

Average users can adopt information from the minter.ton.orgwebsite. It is recommended to read the post for a better grasp of the Jettons creation concept. https://t.me/ton_learn/15

Jettons created using minter will most likely have limited functionality. However, if you learn how to create them from scratch, you’ll be able to improve the quality and utility of the token molded specifically for your product.

⛓ Why does adding liquidity matter?

A newly produced token will almost certainly be worth nothing. Creating a liquidity pair of tokens entails increasing the value of one token by backing it with a more valuable token. As a result of the injection of liquidity, the token gains value; thus, its value rises at the expense of other coins.

⚖️ What proportion of liquidity to add?

In crypto, adding liquidity in a pool is one of the methods of earning passive income.

The Jetton’s price is determined by the ratio of coins in the pool.

If you got 1000 TON and 500 SCALE in the pool = 1 SCALE is 500 / 1000 = 1 SCALE -> 2 TON.

It comes down to a simple equation: the more TON in the pool's coin ratio, the firmer the price will hold. Also, it will be harder to pump or dump. (Pump is an increase in the exchange rate of a coin, and dump, respectively, is a decrease.) This demonstrates the fact that creating a robust token requires a significant liquidity cushion.

– Liquidity Providers & What They Earn
– SCALE/TON as an Example of the Liquidity Pools’ Economics

? Why is tokenomics important?

Tokenomics implies a big picture of coins' distribution since their inception. Fundamental initiatives hold funding rounds, allocate coins for grants, marketing, development, teams, and listing on centralized exchanges. The list is not limited to that; however, keep in mind that the coin’s supply is usually limited.

? The risks of investing in Jettons

Rug pull – It is a sort of scam in which the token's founders sell all of the coins, causing the value to plummet.

Jettons' journeys through any network are always full of rug pulls and lost funds. To avoid getting into trouble, it is vital to learn the roots of the project, analyze its value, and only after that commit to investment, relying solely on your risk management. If this is not done, your crypto portfolio is likely to come to grief.

? Conclusion

To create a strong, fundamental token, it is crucial to study the market around, think over the tokenomics of the entire emission and determine the value your coins can offer the market.

Based on this, it can be assumed that a fundamental token such as $SCALE will gain its value over time, increasing its audience and expanding the functionality of the product.

The cases of unknown tokens that have no tokenomics or anything else but the token itself are shady, to say the least, and don’t inspire confidence in experienced users of The Open Network.

Take care of yourself and your investments from dubious projects.

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Liquidity Providers & What They Earn

“Why am I not getting rewards whilst my funds are in the liquidity pool?”

☝️This is one of the top questions from users to date.

Let’s figure it out…

As soon as you add a trading pair to the pool, you receive LP tokens, namely Liquidity Provider tokens. Each LP has a token value equal to the tokens you contributed to the liquidity.

For example: JTON/BOLT or BOLT/SCALE

Due to commissions, the number of tokens in the pool grows over time, and for each LP the number of tokens of a specific pair (i.e., ordinary tokens) grows correspondingly.

As a result, withdrawing your LP tokens rewards you with more tokens than you initially invested.

It'll make good money if:
– The daily turnover of the trading pair is high.
— Your pool share is relatively large.
— Tokens have been in the pool for some time.

❔ How do I calculate revenue and profits?

For instance: DeDust.io liquidity providers receive 0.5% of each transaction in the SCALE/JTON and BOLT/JTON pairs. Based on this proportion, you get a percentage of your share in the pool. That is, if your share in the liquidity pool is 20%, you’ll receive 0.1% of the commissions retained by the exchange.

The profit is not displayed in live mode; however, it can be viewed when withdrawing tokens from the pool or by clicking on the bar with added liquidity in the exchange interface.

? Below is a more in-depth article with mathematical calculations. Thanks to everyone in the community who helps us improve our product.

https://telegra.ph/SCALETON-as-an-Example-of-the-Liquidity-Pools-Economics-02-17

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