DeFi Liquidity Incentive Program

The DeFi Liquidity Incentive Program (DLIP) provides milestone‑based funding to TON DeFi projects that demonstrate strong community impact, innovation, and transparent fund tracking. It shifts the focus from pure TVL metrics to reinvestment of revenue for long‑term ecosystem growth.

Overview#

TON announced the launch of DLIP on June 6, 2023. The program replaces the earlier Open Challenge Liquidity Scheme, which suffered from limited accountability and an over‑reliance on Total Value Locked (TVL). DLIP introduces three key improvements:

Milestone‑based funding – funds are released as projects meet predefined milestones, enhancing accountability.
Stricter qualification criteria – only projects with solid business plans, measurable impact, and clear innovation pathways qualify.
Shift from TVL to reinvestment – success is measured by how projects channel revenue back into the TON ecosystem, attracting new users.

Prominent TON DeFi projects such as STON.fi, DeDust, and Storm Trade have participated in the program.

Eligibility Criteria#

Projects must satisfy the following requirements to receive DLIP support:

Business plan – a detailed roadmap showing how funds will be used to grow the project, improve user experience, and build community.
Potential impact – evidence of significant contribution to the TON DeFi ecosystem.
Innovation – novel features or services that advance DeFi on TON.
Fund tracking – transparent mechanisms for monitoring fund utilization.

Funding Mechanism & Performance Metrics#

The TON Foundation allocates initial funding after project approval and releases additional tranches based on key performance indicators (KPIs) such as daily, weekly, and monthly active wallets (DAUs, WAUs, MAUs), transaction volume, and TVL. These milestones are tracked within a gamified competition called The Open League (TOL).

During the pilot season of TOL, participating projects reported:

347 % increase in Daily Active Wallets (DAWs)
252 % increase in Weekly Active Wallets (WAWs)
137 % increase in Monthly Active Wallets (MAWs)
550 % rise in liquidity provider count
628 % growth in daily trading volume
710 % surge in daily traders

Applications opened on June 6, 2023 and are reviewed by the TON Foundation’s business development team, which aims to respond within a few days.

How to Apply#

Submit a comprehensive business plan outlining milestones, KPIs, and fund‑tracking methods.
Await review by the TON Foundation’s evaluation panel.
Upon approval, receive an initial grant and begin working toward milestone targets.
Report progress regularly to unlock subsequent funding rounds.