Introduction to Torch Finance
Torch Finance is a decentralized stable asset trading protocol built on The Open Network (TON) blockchain. Launched in 2024, it specializes in facilitating low-slippage swaps for near-pegged assets, including:
- Liquid Staking Derivatives (LSD/LST)
- Stablecoins
- Wrapped tokens
The protocol operates within the TON ecosystem, focusing on DeFi, DEX, and StableSwap solutions to enhance capital efficiency.
Key Features
- Low-Slippage Trading: Optimized for assets with similar values.
- TON-Native Infrastructure: Leverages TON's scalability and speed.
- Multi-Asset Support: Handles LSDs, stablecoins, and wrapped tokens seamlessly.
- Decentralized Governance: Community-driven protocol upgrades.
Financing and Investors
Torch Finance secured $1.5 million in a Pre-Seed round (February 2025) with backing from prominent crypto investors:
| Investor | Notable Affiliation |
|---|---|
| Michael Egorov | Founder of Curve Finance |
| Yenwen Feng | Co-founder of Perpetual Protocol |
| Chiachih Wu | Partner at Kronos Research |
| Andrea Chang | Executive at Alameda Research |
| Martinet Lee | Investor at Sino Global Capital |
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Team and Ecosystem
While the core team remains pseudonymous, Torch Finance collaborates with TON developers and DeFi builders. Its integration with TON’s high-throughput blockchain ensures:
- Sub-second transaction finality
- Minimal gas fees
- Cross-chain interoperability
Recent Developments (2025)
- Protocol V2 Upgrade: Introduced dynamic fee structures for stablecoin pairs.
- TON Liquidity Mining: Incentives for liquidity providers.
- Strategic Partnerships: Collaborations with TON-native LSD projects.
👉 Learn about DeFi innovations on TON
Frequently Asked Questions (FAQ)
1. What makes Torch Finance unique among DEXs?
Torch specializes in stable asset swaps with near-zero slippage, unlike general-purpose DEXs that handle volatile pairs.
2. How does Torch Finance ensure security?
Audits by TON Foundation-approved firms and immutable smart contracts on TON blockchain.
3. Can I stake TON on Torch Finance?
Yes, via LSDs (Liquid Staking Tokens) traded on the platform.
4. Is Torch Finance available outside TON?
Currently TON-exclusive, with future cross-chain bridges under discussion.
5. Who are the main competitors?
Similar protocols like Curve Finance, but optimized for TON’s ecosystem.
Conclusion
Torch Finance is positioning itself as a cornerstone of TON’s DeFi landscape, combining stable asset trading with TON’s technical advantages. With strong investor backing and a clear roadmap, it’s a project to watch in 2025.
For real-time updates, follow Torch Finance on Twitter.