Introducing Aqua Protocol: The First Decentralized Stablecoin on the TON Blockchain

6 min readJul 24, 2023

In the dynamic world of decentralized finance (DeFi), the need for stable, secure, and efficient financial instruments is ever-growing. Amidst the market’s volatility, stablecoins, digital currencies pegged to stable assets like the US dollar, have emerged as a crucial component of the DeFi ecosystem. Aqua Protocol is here to take this a step further. We are proud to introduce the first native decentralized over-collateralized interest-bearing stablecoin on the TON blockchain, aquaUSD.

What is Aqua Protocol?

Aqua Protocol is a project that aims to upgrade and redefine the DeFi landscape on the TON blockchain. We are developing the first decentralized stablecoin protocol on the TON blockchain, designed to offer a secure and transparent solution for financial transactions. This stablecoin is not just another digital currency; it’s a tool aimed at creating value within the TON blockchain ecosystem.

Our mission is to enhance the DeFi ecosystem on the TON blockchain. We aim to provide a stablecoin that leverages the power and speed of the TON blockchain, offering more choices to users and fostering greater decentralization. Through Aqua Protocol, we hope to bring about a new era of stability, security, and transparency in the DeFi space on the TON blockchain.

Why TON Blockchain?

The TON (The Open Network) blockchain is known for its speed, security, and scalability. It’s designed to handle millions of transactions per second, making it one of the fastest blockchains in existence. By building Aqua Protocol on the TON blockchain, we aim to provide a stablecoin solution that can keep up with the demands of modern DeFi applications.

Integration with Telegram

With the TON blockchain originally developed by Telegram’s team, Aqua Protocol has the potential to tap into Telegram’s vast user base. This integration could open up a whole new market for DeFi applications, bringing secure and stable financial transactions to millions of Telegram users worldwide.

Addressing the Challenges in DeFi on TON

In the TON DeFi space, one common practice is the use of bridged stablecoins and the migration of liquidity from other chains. These bridges can enhance DeFi by facilitating communication with services on other chains. However, there’s a common misconception that bridged analogs have the same reliability as the original stablecoins, which is not always the case. They can lead to dependency on other chains, potential security risks, and even the loss of peg for bridged stablecoins. Moreover, storing all coins on one bridge can pose additional risks.

At Aqua Protocol, we aim to address these misconceptions and provide more choices for users to hedge their funds. Our solution is independent, secure, and transparent, designed to reduce dependency on other chains and minimize potential security risks. Beyond that, Aqua Protocol offers users more potential opportunities to earn. Our goal is to help users create value and liquidity within the TON ecosystem itself, fostering a more self-sustaining and robust DeFi environment on the TON blockchain.

Innovation at Aqua Protocol

Aqua Protocol is more than just a DeFi project. We’re bringing innovative solutions to the DeFi space. Our approach to creating a decentralized stablecoin on the TON blockchain is informed by the best practices and lessons learned from all kinds of stablecoins, both collateralized and algorithmic. We’re not just repeating what’s been done before; we’re improving upon it, using the latest secure approaches. Our solution is designed to be not only secure and stable, but also capable of maintaining its peg to the US dollar, providing a reliable medium of exchange for users.

One of our key innovations is the reward system for holding stablecoins. This feature is designed to incentivize users to hold and use our stablecoin, thereby fostering a more vibrant and active DeFi ecosystem on the TON blockchain. Importantly, this is not a Ponzi scheme. The reward system is based on sound economic principles and technical design. We will be releasing full technical details of this system soon, so stay tuned.

Additionally, Aqua Protocol offers a unique lending feature. Our protocol allows users to take out loans in our stablecoin, using their crypto assets as collateral, similar to a Lombard loan. This feature provides users with liquidity while allowing them to retain their exposure to their crypto assets.

Meet the Team Behind Aqua Protocol

The Aqua Protocol team is composed of seasoned professionals with a unique blend of experience in the blockchain, DeFi, and startup spaces. Our team members have co-founded several successful projects in the blockchain space, have deep understanding of the DeFi landscape, and have been involved in the development of several DeFi projects, including the development of decentralized over-collateralized stablecoins.

In addition to our hands-on experience, our team has also participated in multiple acceleration programs and startup schools, further honing our skills and understanding of the startup ecosystem.

Our team’s unique combination of experience in building stablecoins, deep understanding of crypto and DeFi, and proven track record in building startups makes us well-suited to build and launch Aqua Protocol. We are committed to leveraging our collective expertise to redefine the DeFi landscape on the TON blockchain.

Our Mission

Our mission is to enhance the DeFi ecosystem on the TON blockchain by providing a stablecoin that is secure, transparent, and capable of maintaining its peg to the US dollar. We aim to address the challenges in the current DeFi space, provide more choices for users, and foster a more self-sustaining and robust DeFi environment on the TON blockchain.

We’re not just building a stablecoin; we’re building a community. We believe in the power of community and the importance of open communication. We’re committed to engaging with our users, listening to their feedback, and continuously improving our platform to better meet their needs.

Roadmap

We’re just getting started. As we continue to develop Aqua Protocol, we’re excited to introduce more features and enhancements to our platform. Here’s a look at our roadmap actual on 24.07.2023:

June 2023 — Landing page and documentation release (Done)
July 2023 — Prototype release on Hack-a-TONx DWF Labs x AWS (In progress)
August 2023 — Close Alpha testing
September 2023 — Launch of the Aqua Protocol testnet and introduction of reward programs for early testers
October 2023 — External audit and mainnet launch

In parallel with these developments, we will be expanding our partner network and working on integrations to further enhance the utility and reach of Aqua Protocol. We’re excited about the journey ahead and look forward to sharing our progress with you.

The Future of Aqua Protocol

We’re just at the beginning of our journey. As we continue to develop Aqua Protocol, we’re excited to introduce more features and enhancements to our platform. Our long-term vision is to create a comprehensive DeFi solution on the TON blockchain that is not only secure and stable, but also innovative and user-centric.

We believe that Aqua Protocol represents the next step in the evolution of DeFi. Our project is designed to address the current limitations in the space, provide more choices for users, and create a more vibrant and robust DeFi ecosystem on the TON blockchain.

In the coming weeks and months, we will be sharing more analysis of the TON ecosystem and its challenges, detailed technical explainers, and other valuable information. We’re committed to transparency and education, and we want to ensure our community is well-informed about our progress and the broader context in which we’re operating.

We’re excited to have you join us on this journey. Stay tuned for more updates and developments as we continue to innovate and redefine the DeFi landscape on the TON blockchain.

Join our Telegram community and participate in feature and updates discussions: https://t.me/aquaprotocolxyz

Request an early access: https://aquaprotocol.xyz/