What is DeDust? A Guide to the TON Blockchain DEX

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DeDust.io is a decentralized exchange (DEX) operating on The Open Network (TON) blockchain. It enables users to swap tokens and provide liquidity through an automated market maker (AMM) model. This system uses algorithms to facilitate the automated buying and selling of crypto assets, allowing users to trade directly against the liquidity pool rather than relying on a traditional order book and counterparties.

The platform offers a user-friendly interface and supports numerous trading pairs, making cryptocurrency trading seamless and accessible. Designed to provide a secure and efficient trading experience within the TON ecosystem, DeDust.io plays a key role in expanding decentralized finance (DeFi) on this blockchain.

By integrating several unique features, DeDust enhances both the user experience and functional capabilities of DeFi on TON. It utilizes an abstraction layer that allows for the seamless integration and transfer of multiple asset types—going beyond single-asset limitations. This provides users with exceptional flexibility in managing digital assets, including native coins and tokens from other networks.

The Background of DeDust

DeDust was established in 2022 by founder and CEO Nick Nekilov. The DEX platform operates as a private company based in Zug, Switzerland. The leadership team comprises four members with diverse digital expertise:

Currently, the exchange supports 1,063 trading pairs and 87 different tokens.

Key Features of DeDust

DeDust provides a state-of-the-art DEX protocol on the TON blockchain, specifically designed for jettons (token standards on TON). The protocol enables decentralized cryptocurrency trading and includes the following features:

Benefits of Using DeDust

Efficient Decentralized Trading

Users enjoy an efficient and seamless trading experience with access to over 600 liquidity pools on the TON blockchain for various token swaps.

User-Friendly Interface

The platform is accessible via its website and as a Telegram mini-app, simplifying participation in DeFi activities. Users can easily stake SCALE tokens to generate passive income or provide liquidity.

Low Transaction Fees

DeDust.io offers fast settlement times and minimal transaction fees, inherent benefits of the TON blockchain. This enhances the overall trading and investing experience within the TON ecosystem.

How Does DeDust Exchange Work?

Bridge Functionality

To use DeDust’s bridge, users must first fund their TON wallet. This is the initial step to enable transfers and operations on DeDust. Users need to connect two wallets to the exchange via their browser—commonly Tonkeeper for TON or MetaMask for Ethereum. Users also need TON in their balance to add funds to the TON blockchain, which can be done by withdrawing TON from a centralized exchange.

Pool Participation

Tokens permitted on DeDust are typically displayed on the homepage. Users can also search for any token or trading pair by entering the token contract in the search bar. They can review contract details on blockchain explorers like TonScan or Tonviewer. Clicking on a trading pair provides more information about its liquidity pool. The "My Positions" tab shows a simple overview, and selecting a specific pool reveals detailed metrics.

Key pool metrics include:

Token Swaps

The core function of the DEX is token swapping, accessible via the "Swap" tab. Users select the token they wish to trade and choose the desired token from the market via a dropdown menu. Tokens in this menu are on the "whitelist," but users can also manually enter a contract address to trade other tokens that have completed the listing process.

An "Expert Mode" is available, allowing users to adjust slippage settings. Trades execute if the pool has sufficient liquidity.

Portfolio Tracking

The Portfolio tab displays the user’s total asset balance and their share in liquidity pools.

Major Innovations by DeDust

Asset Abstraction

DeDust introduces an abstraction layer that supports multiple asset types—such as native coins and tokens from other chains—enabling seamless integration and transfer. Unlike many protocols that only work with specific asset types (e.g., ERC-20 tokens but not native coins), DeDust avoids the need for "wrapped" assets (like WETH or WTON), which often increase gas costs.

This asset-agnostic approach simplifies transfer procedures and allows for easy integration of new asset classes, ensuring adaptability in the evolving DeFi landscape.

The SCALE Token

DeDust recently launched its native token, SCALE, to incentivize users to contribute liquidity to the exchange’s pools. The platform converts a portion of trading fees into SCALE tokens for staking rewards. This model encourages active participation and provides additional utility for the SCALE token through revenue sharing. Over 288,000 SCALE tokens have been distributed to holders.

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Staking Program

The staking program represents a significant advancement for DeDust’s DeFi ecosystem. It allows users to generate passive income while enhancing the stability and liquidity of the platform. This approach benefits stakeholders and increases the overall utility of the SCALE token, fostering greater community engagement.

Since its launch on May 2, 2024, the staking program has gained substantial momentum, with over 9 million SCALE tokens staked. Participants benefit from attractive annual percentage rates (APR). DeDust has accumulated over $7 million in total value locked (TVL) on its DEX.

Connecting to DeDust

In the TON ecosystem, TON Connect is a communication protocol that facilitates information exchange between wallets and applications. Connecting a non-custodial wallet to DeDust.io is straightforward, though the process varies slightly by device.

For Mobile Users:

For Desktop Users:

Connecting via MyTonWallet

Connecting via Tonkeeper

Understanding the SCALE Token

Scaleton (SCALE) is the native token of DeDust.io and the broader Scaleton ecosystem. Launched in April 2022, its initial supply was 21,000,000 SCALE. The maximum supply is capped at 16,711,116.38 after accounting for usage and burns.

Token Allocation:

SCALE Utility

SCALE staking was implemented on May 2, 2024, funded by DeDust.io protocol fees. The platform uses fees to buy back SCALE and distribute it to stakers. Specifically, 80% of fees are returned to liquidity providers as compensation, while the remaining 20% are converted to SCALE and allocated to stakers.

For example, a pool with a 0.25% trading fee allocates 0.20% to LPs and 0.05% to staking rewards.

Conclusion

DeDust stands out in the competitive DEX industry by leveraging the robust TON blockchain to offer a seamless and practical trading experience. Its key strengths include an intuitive design, strong security measures, and advanced protocol features. As DeDust continues to expand, it is positioning itself as a significant player in the future of decentralized finance.

Frequently Asked Questions

What is DeDust.io?
DeDust.io is a decentralized exchange on the TON blockchain that allows users to swap tokens and provide liquidity using an automated market maker model, ensuring efficient and secure trades.

How do I connect my wallet to DeDust?
You can connect supported wallets like Tonkeeper or MetaMask via the 'Connect Wallet' option on the DeDust.io website or Telegram mini-app. The process involves selecting your wallet and verifying the connection.

What are the benefits of staking SCALE?
Staking SCALE allows users to earn rewards from a portion of the platform’s trading fees. It enhances ecosystem liquidity and provides a passive income stream for participants.

Does DeDust support assets from other blockchains?
Yes, through its asset abstraction layer, DeDust supports native coins and tokens from various blockchains, enabling cross-chain functionality without wrapping assets.

What makes DeDust different from other DEXs?
DeDust offers reduced gas fees, multi-hop trades, and a user-friendly interface integrated with Telegram. Its asset abstraction and SCALE staking model provide unique flexibility and incentives.

Are there risks to providing liquidity on DeDust?
As with any DEX, liquidity providers face impermanent loss risks. However, DeDust’s fee structure and rewards aim to compensate for these risks effectively.

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