DeFi protocols have revolutionized the financial landscape, providing decentralized solutions and empowering users with unprecedented control over their assets. However, sustaining liquidity and driving user growth remain constant challenges we must address. That’s why we’re introducing the new DeFi Liquidity Incentive Program to incentivize projects to reinvest funds in sustainable growth strategies and user-centric development.

The previously launched Open Challenge liquidity scheme has its limitations, primarily focusing on Total Value Locked (TVL) without ensuring that the funds are used to benefit the ecosystem and attract new users. Moreover, the current system is prone to error, lacking transparency and accountability. It is crucial to revamp this scheme to achieve organic sustainability within the DeFi space inside the TON Ecosystem.

DeFi Liquidity Incentive Program

The new DeFi Liquidity Incentive Program introduces a comprehensive set of qualification criteria to identify projects that align with the goals of sustainable growth and user-centric development.

These criteria include:

• Innovativeness of the project: Projects that bring novel ideas and technological advancements to the DeFi ecosystem will be prioritized.
• Business plan: Projects must outline a clear strategy for utilizing the funds to drive growth and enhance user experience. A well-defined plan increases the chances of qualifying for the incentive.
• Significance in the TON ecosystem: The project's impact on the TON ecosystem and its potential to contribute to its overall development will be evaluated.
• Trackability of fund utilization: Projects need to propose a plan for the Ton Foundation to effectively monitor the utilization of funds, ensuring they are reinvested to drive user growth and transactions.

Funding and Progression Mechanism

The new DeFi Liquidity Incentive Program follows a progressive, milestone-based approach to funding projects. Once a project qualifies for the scheme and the TON Foundation accepts its plan, it receives an initial sum of money. Additional funds may be granted based on the successful utilization of the initial funds and project growth. Key Performance Indicators (KPIs) and milestones should be quantifiable, reflecting an increase in Daily Active Users (DAUs), Monthly Active Users (MAUs), TVL, or transactions. By focusing on achieving these milestones, projects will demonstrate their commitment to sustainable growth and user engagement.

Advantages Over the Existing Open Challenge

The new DeFi Liquidity Incentive Program brings several notable improvements compared to the previously launched Open Challenge:

• Shift from TVL focus: The original plan primarily incentivized projects based on TVL. In contrast, the new initiative prioritizes the reinvestment of funds to drive development, ensuring that benefits are passed on to the users.
• Comprehensive eligibility criteria: The new plan considers various factors, such as project innovativeness, business plan, significance in the TON ecosystem, and trackability of fund utilization. This approach encourages projects to present well-rounded proposals and fosters innovation within the DeFi space.
• Progressive, milestone-based approach: Unlike the one-off rewards in the previous scheme, the new plan emphasizes progressive funding based on achieving specific milestones. This approach encourages ongoing development and long-term sustainability.

Introducing the new DeFi Liquidity Incentive Program marks an important step towards sustainable growth and enhanced user experiences within the DeFi ecosystem. By shifting the focus to project development and user-centric strategies, this initiative ensures that funds are reinvested to benefit the entire community. With more comprehensive eligibility criteria and a milestone-based approach, the program aims to foster innovation and drive the DeFi space toward organic sustainability.

Applications to the program will open on 6. June. We made the application process as straightforward and fast as possible. Once you apply, our business development team will review your application and inform you about your acceptance within XX days.

Apply for Funding