TON AppChain Mainnet launched, Decentralized Finance applications will connect to the Telegram ecosystem

The TON AppChain (TAC) officially launched its Mainnet this week, aimed at enabling Ethereum-compatible Decentralized Finance (DeFi) applications to operate within Telegram's vast user ecosystem. With the activation of the Mainnet, Ethereum DeFi protocols such as Curve, Morpho, and Euler are now available for use on Telegram through this chain.

The TAC token saw a significant increase shortly after launching on the Mainnet, with a rise of over 50%, reaching a peak of $0.0248, before dropping back to around $0.026.

Technical Path: Connecting Ethereum Decentralized Finance with Telegram Users

TAC is designed as a Layer 1 blockchain based on CosmosEVM, with the core concept of providing a "TON-specific cross-chain layer" aimed at connecting Ethereum DApps and developers with Telegram's over 1 billion monthly active users. This technical path addresses the incompatibility issue of the TON blockchain with EVM itself, enabling EVM-based DApps to access Telegram's exclusive blockchain infrastructure through TAC.

The TAC ecosystem is supported by multiple infrastructure partners, including projects that provide 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 DeFi protocols have landed on TAC via Telegram, providing users with decentralized trading and lending services.

Distribution Strategy: Leveraging the Telegram User Base

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

A partner at a certain laboratory stated that the launch of TAC's Mainnet is "an important step in bringing DeFi to the mainstream" and aims to provide "real practicality" for a large number of users.

Telegram's ambitions are clearly not limited to this. 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 plan, 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 Series A+ financing of $28.5 million in early July, with a valuation exceeding $1 billion. It is reported that among the investors is a sovereign fund from the Middle East. Compared to other Layer 1 projects, TAC has a unique advantage: it can directly leverage Telegram's user base without needing to cultivate user habits from scratch.

Challenges Facing the TON Ecosystem

Despite gaining capital favor, the development of the TON ecosystem still faces real challenges. The year 2024 has seen significant ups and downs for the TON ecosystem, with the total locked value (TVL) surpassing $760 million in the first half of the year, but experiencing a sharp decline in August, currently standing at less than $150 million.

TAC is currently facing three challenges:

1. How to continuously attract high-quality DApp developers in the overall sluggishness of the TON ecosystem;
2. How to truly activate the participation of Telegram's vast user base;
3. How to address potential regulatory challenges, especially those involving on-chain activities.

Guiding social users into the DeFi space is a complex process. Whether this experiment connecting the two major ecosystems will succeed remains to be seen.