In a significant development for the blockchain ecosystem, Layer-1 blockchain TON has announced its partnership with interoperability protocol LayerZero. This collaboration aims to facilitate seamless movement of funds across multiple blockchain ecosystems, thereby promising to enhance user experience while generating increased usage and fees for both entities involved.
The initial phase of this integration will see TON connecting to twelve major blockchains, including Ethereum, Tron, and Solana. Users will be able to effortlessly transfer stablecoins into TON using Stargate, recognized as the largest cryptocurrency bridge currently operational. According to DefiLlama, Stargate has already processed an impressive volume of $1.6 billion over the past month.
One of the standout features of this partnership is LayerZero’s provision of multichain liquidity. This approach allows cryptocurrency assets locked in various blockchains to be pooled together, significantly mitigating risks associated with slippage—defined as the change in price between the initiation and completion of a transaction—or potential transaction failures.
Liquidity serves as the backbone of decentralized finance (DeFi), with an approximate total value locked (TVL) of $117 billion currently spread across all blockchains. However, the existence of more than 4,400 blockchains and layer-2 networks has led to fragmented liquidity scenarios. This fragmentation poses challenges for trading firms seeking to lend or borrow significant amounts on specific chains, often resulting in slippage or transaction failures. By pooling liquidity, the chances of these issues occurring are significantly reduced.
Notably, crypto firms such as Tether and Ethena are also set to benefit from this integration. Ethena’s flagship asset, USDe, valued at $5 billion, is slated to launch on TON, while Tether’s newly introduced USDT0 stablecoin aims to address liquidity challenges and is transferable across TON, Tron, Ethereum, Celo, and Arbitrum through its innovative Legacy Mesh product.
This year, developers also stand to gain from the integration as it will allow tokens to be deployed on TON directly from any of LayerZero’s supported chains, all through a single contract. The ease of deployment can pave the way for more innovative projects and greater utility in the ecosystem.
Originally conceived in 2018 as an internal venture within the messaging platform Telegram, TON faced hurdles when Telegram ceased its development two years later. However, in September 2023, the application expressed its backing for the now-independent TON, unveiling plans to integrate the blockchain into its app’s user interface. Furthermore, just last month, TON was designated as the exclusive blockchain for Telegram’s mini apps ecosystem, thereby solidifying its position in the market.
As Bryan Pellegrino, CEO of LayerZero, articulated, “TON is undoubtedly one of the most exciting ecosystems today. After its exclusive partnership with Telegram, it now has access to nearly a billion users.” With such a promising trajectory, the collaboration between TON and LayerZero indeed heralds a new era of interoperability and liquidity in the blockchain world.
