Abstract

This Litepaper presents TonPeg, a decentralized lending protocol that connects The Open Network and Ethereum blockchain. The document contains a broad but concise overview of all components of TonPeg. For articles giving more in-depth details, please read our Medium blog.

The main advantage of TonPeg is the ability to use wrapped versions of Toncoin (TON) as collateral to borrow funds. This feature allows traders to keep their TON position while earning passive income both from node fees and Supply lending interest. In addition, lenders receive an opportunity to borrow other assets available on TonPeg Markets. Potentially, this targets substantial amounts of liquidity worth billions of dollars both on TON and Ethereum blockchains.

TonPeg is governed by its Decentralized Autonomous Organization (DAO), whose membership is based on holding a governance NFT (gNFT). The members of TonPeg DAO can vote on protocol development and receive benefits such as share in protocol income. For an overview of TonPeg DAO, please see the respective Chapter.

TonPeg Participation Index (TPI) is an ERC-20 token that must be burned to obtain a fully functional gNFT. No pre-sale of TPI or gNFTs will take place, however, a large part of TPI’s supply will be distributed as airdrop to the most active users and first liquidity providers to TonPeg Markets. The detailed mechanics of the TPI token and governance NFTs are described in the respective sections.

Finally, the APPENDIX section of the Litepaper contains additional materials like the version history, roadmap or supplementary data and graphics. Please note that all information is subject to change together with updates in protocol development.