LayerPixel: a review of DeFi infrastructure for the TON ecosystem

In July the Telegram team unveiled new app features, including a Web3 browser built on The Open Network (TON) blockchain. By the end of the month, total value locked (TVL) in the network exceeded $700m, putting it among the 15 largest DeFi ecosystems.

These developments followed Pavel Durov’s statement that the messenger’s user base is nearing 1bn thanks to “tappers”. LayerPixel is a solution that provides multi-layer DeFi infrastructure for developers of these and other mini-apps in Telegram.

Layer 1.5

According to LayerPixel representatives, the project aims to simplify development on TON. At the end of July the company announced the completion of a $2m seed round led by venture firm Kenetic Capital. Other participants included Waterdrip Capital, Foresight Venture, VentureSouq, Web3 Port, Microcosm Research and TMM Club.

The LayerPixel team highlights several traits of The Open Network:

• unlike Ethereum, transactions are finalized (or rejected) asynchronously. The sharding mechanism creates extra hurdles when building DeFi applications that require fast and precise transaction confirmations;
• TON uses more complex contract logic for token transfers, increasing the likelihood of coding errors.

“Having encountered these problems, we realized the need to create reliable development tools on The Open Network and decided to take on the role of pioneers and lay the foundation, a Layer 1.5 for the DeFi infrastructure of the TON ecosystem,” ― explain LayerPixel representatives.

The solution’s architecture comprises four layers:

1. Funding. Handles asset storage in PixelWallet and other wallets, providing basic fund-management functions.
2. Settlement. Uses the LayerPixel Settlement Engine to record and execute each transaction in a timely manner.
3. Execution. Matches trades via AMM Engine, Weighted Pool Engine and LBP Engine. These complement each other, providing liquidity for DeFi protocols.
4. Extension. Third-party solutions operate at this level. For example, developers can plug in an anti-money-laundering (AML) service.

LayerPixel also is developing the PixelWallet wallet, the modular DEX PixelSwap, the price oracle Pixacle and the Game of Dawn platform. Users of the latter earn points in games, which can later be converted into LPX tokens.

PixelWallet and PixelSwap

Among PixelWallet’s features:

• gasless transactions. User fees are covered by third-party protocols;
• atomic swaps. Complete several transactions in a single operation;
• additional authentication methods. Users can generate a passkey or a MetaMask signature.

PixelSwap is a modular decentralised exchange on TON that supports:

• weighted-pool swaps. To manage trading pairs the platform uses a contract similar to Uniswap V4;
• multiple trading algorithms. In addition to standard pools the exchange supports weighted pools and smart pools (Liquidity Bootstrapping Pools, LBP).

The DEX’s modular design allows it to be tailored to varied developer needs.

“In combination with gasless transactions and several PixelWallet authentication methods, we will significantly improve the user experience of trading on the DEX. Such a LEGO construction is ideal for building flexible DeFi solutions on TON,” ― comment the project’s representatives.

Game of Dawn

The aim of Game of Dawn is to attract real users to Telegram games, eliminate bots and lay the groundwork for the development of the LayerPixel token (PLX). To that end the developers added to the platform:

• a paid subscription to filter fake accounts;
• conversion of points into LPX, which can be sold or used in the LayerPixel ecosystem;
• a multi-level distribution structure: the longer a player engages with Game of Dawn, the more points they receive.

“Different gaming projects on TON face the same difficulties: their tokens have no real utility, and the applications are exploited by a large number of bots. We want to create a community of real users and a platform focused on the overall development of GameFi on Telegram, rather than a specific game,” ― note LayerPixel.

At the time of writing, two games are available on Game of Dawn: Almost a Hero and Isekai Adventure. Three more are in development.

Conclusions

LayerPixel is a start-up seeking to occupy the niche of an infrastructure provider in TON’s growing DeFi ecosystem.

“By 2026 LayerPixel will open all functionalities for third-party developers. They will be able to use LayerPixel technology to build various decentralised applications in the TON ecosystem,” ― claim LayerPixel.

In the near future the project will add cross-chain bridges to increase liquidity on the DEX and support for other networks such as Ethereum, making LayerPixel a multichain platform.