UTONIC Protocol has achieved a $100M Total Value Locked (TVL) milestone with TON’s first restaking solution, offering TON restakers new ways to enhance yield and support The Open Network’s ecosystem.
UTONIC Protocol, supported by key contributors in The Open Network (TON) ecosystem, including TonStake, iZUMi Finance, InfStones, SatLayer, and StakeStone, has reached a significant milestone with $100M in Total Value Locked (TVL). UTONIC allows TON restakers to earn multiple types of yield, including native validator yield, Actively Validated Services (AVS) yield, and farming incentives. This initiative also promotes innovation within the ecosystem by improving network security, which benefits various projects like cross-chain bridges, oracle networks, and sidechains. UTONIC’s approach aims to decentralize TON’s blockchain, fostering shared security and creating a stronger ecosystem.
How Does it Work?
UTONIC enables users to extend the security of the TON blockchain to additional applications by repurposing their staked TON. Through the reallocation of these staked assets, users can secure Actively Validated Services (AVS) within the UTONIC platform. This process involves granting additional enforcement rights over their staked assets, with optional supplementary slashing conditions designed for specific services, such as data availability protocols, cross-chain bridges, and oracles. These conditions help maintain the integrity and security of all participants and the relevant applications.
The UTONIC protocol operates as a marketplace where developers can encourage operators to allocate their restaked TON to secure various services. This method offers a more efficient alternative to traditional approaches, where applications often need to issue tokens as rewards for validators and build a trust network from scratch. By leveraging restaked TON assets, UTONIC significantly reduces the time and capital required to establish a new trust network.
Restaking Methods
Native Restaking: Stakers can restake by depositing their TON into UTONIC smart contracts. These tokens are then used in participating TON staking, allowing operators to restake the assets on UTONIC.
LST Restaking: Stakers also have the option to restake by depositing their Liquid Staking Tokens (LSTs) into UTONIC smart contracts. Operators will then restake these LSTs, which have already been staked in other protocols, on UTONIC.
UTONIC will issue a liquid restaking token (LRT) known as uTON as a receipt for restaked TON in the UTONIC Protocol. Additionally, co-incentives from partners will be available to uTON users across decentralized finance (DeFi), sidechains, and other platforms within the TON ecosystem.
For more technical details, UTONIC has submitted a proposal to TON Research. You can access the proposal here: [Implementing TON Restaking: The UTONIC Approach.
The Product-Market Fit of UTONIC
As The Open Network continues to expand, restaking TON tokens becomes increasingly important for enhancing the ecosystem’s security and scalability. This approach allows existing staked assets to secure additional decentralized applications (dApps) and services, as many native applications will continue using a hybrid structure of on- and off-chain methodologies to reach a broader user base. By leveraging the network’s existing validators, the restaking approach offers a more flexible and economically efficient infrastructure without the need for additional resources.
DeFi-Focused Background and Partners
The UTONIC Protocol team has a strong background in decentralized finance (DeFi) and has recognized the growing need for restaking solutions. Drawing inspiration from projects like EigenLayer, UTONIC combines innovation with TON’s specific use cases, empowering both validators and individual token holders to enhance the security and scalability of local dApps.
Key protocols and players in the TON ecosystem, such as TonStake, iZUMi Finance, InfStones, SatLayer, and StakeStone, have partnered with UTONIC Protocol to provide advisory and technical support.
Envisioning the Future of TON Blockchain through Restaking
The crypto industry is currently experiencing a period of slow user growth and limited adoption, partly due to the global economic downturn. However, The Open Network’s blockchain has gained traction through the adoption of mini-apps on Telegram, and there is growing speculation that it will continue to onboard millions of new users in the future.
