TON AppChain Mainnet launched, bringing Decentralized Finance to the Telegram ecosystem

The TON AppChain (TAC) officially launched its Mainnet this Tuesday, aiming to bring Ethereum-compatible Decentralized Finance (DeFi) applications into Telegram's vast user ecosystem.

With the activation of the TAC Mainnet, Ethereum DeFi protocols such as Curve, Morpho, and Euler are now available on Telegram. The TAC token ($TAC) saw a short-term surge after going live on the Mainnet, with an increase of over 50%, peaking at $0.0248, before dropping back to around $0.026.

Technical Path: Introducing Ethereum DeFi to Telegram

TAC is a Layer 1 blockchain based on CosmosEVM, whose core design concept is to provide a "TON-specific cross-chain layer" that connects Ethereum DApps and developers with Telegram's over 1 billion monthly active users. This technical approach addresses the incompatibility of the TON blockchain with EVM, allowing EVM-based DApps to access Telegram's dedicated blockchain infrastructure through TAC.

The TAC ecosystem is supported by multiple infrastructure partners, including technology providers that offer cross-chain messaging and oracle data stream services. These collaborations ensure the smooth operation and data accuracy of DeFi applications within the Telegram environment.

Currently, several well-known Ethereum Decentralized Finance protocols have landed on Telegram through TAC, providing users with decentralized trading and lending services.

Distribution Strategy: Leverage the User Base Advantage of Telegram

The strategic core of TAC lies in gaining access to the TON ecosystem and reaching Telegram's vast user base through TON. It is claimed that users can use DeFi applications, conduct transactions, or engage in yield farming with just "one click."

A managing partner at a certain laboratory stated that the launch of TAC's Mainnet is "an important step in bringing DeFi to the mainstream," aiming to provide "real practicality" for over one billion users.

Telegram's ambitions don't stop there. Earlier this year, the social platform reached an agreement with the TON Foundation, requiring all blockchain mini-programs to be developed based on TON. It then launched a digital asset tokenization program, with the founder mentioning the deep integration of social and finance, stating that every chat window should become a financial gateway.

A certain laboratory completed a $28.5 million Series A financing at the beginning of July, with a valuation exceeding $1 billion. It is reported that among the investors is a certain Middle Eastern sovereign fund. Compared to other Layer 1 projects, TAC's unique advantage lies in its ability to directly leverage Telegram's user base without having to cultivate user habits from scratch.

TON Ecosystem: Facing Real Challenges

Despite attracting capital interest, the future development of TAC still faces real challenges. The year 2024 can be described as a double-edged sword for the TON ecosystem; in the first half of the year, the TVL once surpassed $760 million, but it experienced a significant drop in August and is currently below $150 million.

TAC currently faces three challenges:

1. How to attract quality DApp developers to continue building in the overall sluggish TON ecosystem.
2. Break through the dilemma of "getting praise but not sales" and truly activate the participation of Telegram's billion-level users.
3. Respond to the regulatory environment, especially regarding issues related to on-chain activities.

Bringing billions of chat users into the DeFi ecosystem is no easy task. How far this experiment connecting the two ecosystems can go still needs time to provide an answer.