UTONIC Protocol raises $100M TVL for TON’s first restaking solution

Supported by key players in the restaking field and The Open Network’s ecosystem — including TonStake, iZUMi Finance, InfStones, SatLayer, and StakeStone — UTONIC allows TON restakers to earn triple yield (native validator yield, AVS yield, and farming incentives). This model fosters innovation and strengthens the network, benefitting projects like cross-chain bridges, oracle networks, and sidechains.

UTONIC’s initiative decentralizes the TON blockchain’s operation, enhancing shared security and 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 this process, users secure Actively Validated Services (AVS) within UTONIC while agreeing to provide added enforcement rights over their staked assets. This feature introduces extra slashing conditions specific to the needs of validated services, such as data availability protocols, cross-chain bridges, and oracles, ensuring the integrity of all participants and maintaining application security.

The UTONIC protocol acts as a marketplace where developers can encourage operators to allocate their restaked TON to secure services. This approach significantly improves on the traditional model, where applications often need to issue highly inflationary tokens to reward validators and build a new trust network from scratch. UTONIC leverages the security of restaked TON assets, reducing the need for capital and time investment compared to creating a new trust system.

Restakers of TON can participate through these methods:

• Native Restaking: Users can restake by depositing their TON into UTONIC smart contracts. The staked TON will then be utilized by operators to restake the assets on UTONIC.
• LST Restaking: Users may also restake by depositing Liquid Staking Tokens (LSTs) into UTONIC smart contracts. Operators will use these LSTs, which are already staked in other protocols, to restake on UTONIC.

An embedded liquid restaking token, uTON, will be minted as a receipt of restaked TON in the UTONIC Protocol. Partners will provide additional incentives to uTON users across DeFi, sidechains, and other platforms within the TON ecosystem.

UTONIC has submitted a technical proposal to TON Research. For further details, visit their site.

The Product-Market Fit of UTONIC

As The Open Network continues to grow, restaking the TON token is crucial for enhancing overall security and scalability. This strategy allows existing staked assets and methods to support additional decentralized applications (dApps) and services. Many native applications will use a combination of on- and off-chain methods to reach vast numbers of users. Restaking utilizes the network’s current validators, creating a more adaptable and cost-effective infrastructure without the need for new resources.

DeFi-Focused Background and Partners

The core team behind UTONIC Protocol has a strong foundation in DeFi, addressing the need for restaking. Inspired by EigenLayer, UTONIC combines innovation with TON’s specific use cases, empowering both TON validators and individual token holders to enhance the security and scalability of local dApps.

Key protocols from the restaking landscape, alongside leading figures in the TON ecosystem like TonStake, iZUMi Finance, InfStones, SatLayer, and StakeStone, have partnered with UTONIC to provide guidance and technical support.

The Future of TON Blockchain Through Restaking

The crypto sector currently faces challenges in attracting new users and adoption, partly due to the global economic downturn. However, The Open Network’s blockchain has gained traction through mini-apps on the Telegram app and has drawn attention for its potential to continue onboarding millions of users.