A new protocol called Affluent has emerged with the ambitious goal of turning Telegram into a “financial super app.” Powered by the Toncoin blockchain, Affluent plans to bring crypto-based financial services directly to Telegram’s 700 million global users, positioning itself as a “smart bank for crypto.”
Affluent is a decentralized money market protocol designed to function as a mini app within the Telegram messaging platform. The platform offers variety financial services, including lending pools, yield strategies, and liquidity management, all built on top of the TON blockchain. The integration within Telegram’s ecosystem aims to make it easier for users to access and utilize DeFi products, without the need to navigate separate apps or complex interfaces.
By leveraging the TON blockchain, Affluent, as it said, provides a streamlined, secure, and user-friendly gateway for everyday crypto users and institutions alike. The mini app allows Telegram’s vast user base to seamlessly participate in DeFi, making it one of the first major attempts to merge traditional messaging services with financial tools in a decentralized setting.
Affluent’s co-founders, Justin Hyun and Hyung Lee, have extensive experience in the blockchain and DeFi space. Justin Hyun, the former director of the TON Foundation, and Hyung Lee, the co-founder of the DeFi R&D project B-Harvest, aim to take Telegram's ecosystem beyond communication and entertainment to encompass financial services.
Hyun’s background with the TON network, which Telegram abandoned in 2020 before being revived under the leadership of the TON Foundation, positions him uniquely to lead this initiative. Hyun and Lee’s goal is to use Affluent to turn Telegram into a financial super app - similar to the role played by Tencent’s WeChat in China, which integrates messaging, mobile payments, credit scoring, and more into a single app.
According to a statement from Hyun, “We want to make Telegram a financial super app by providing crypto-based savings solutions for retail users and offering liquidity for institutions." This vision hinges on the ability to bring decentralized finance to the masses by offering a familiar interface and easy access within the app that millions already use daily.
Why Telegram and TON?
Telegram’s massive global user base - over 700 million users as of 2023 - makes it an ideal candidate for integrating blockchain and cryptocurrency functionalities. By embedding Affluent directly into the messaging platform, the protocol has a unique advantage in terms of user acquisition and ease of access.
Furthermore, Telegram’s endorsement of the TON blockchain as its Web3 infrastructure backbone strengthens Affluent’s case. Initially, Telegram distanced itself from TON, but after years of development, the platform gave its formal approval in September 2023. This endorsement opened the door for projects like Affluent to build atop the blockchain, benefiting from its scalability, low transaction costs, and decentralized architecture.
TON, originally designed by Telegram but later taken over by the independent TON Foundation, is well-suited for DeFi applications. Its fast transaction times and low fees offer an optimal environment for high-frequency financial transactions like lending, borrowing, and staking - core functions that Affluent aims to provide.
The concept of a "super app" is a prominent trend in global tech markets, particularly in Asia. Companies like Tencent’s WeChat, Grab, and Gojek have successfully integrated a wide range of services into a single app, allowing users to access everything from messaging and shopping to ride-hailing, banking, and entertainment.
In the crypto and DeFi world, the super app concept is gaining traction, as it promises to bridge the gap between digital currencies and everyday financial tools. For Telegram, the introduction of a DeFi super app means more than just providing services - it aims to create a comprehensive ecosystem where users can manage their assets, transfer funds, access credit, and invest, all without leaving the platform.
Affluent’s mini app seeks to replicate this super app model for crypto users by allowing Telegram’s users to access various DeFi services - such as staking, liquidity pools, and lending platforms - within the same interface they already use for communication. This model hopes to solve one of DeFi’s most common criticisms: a fragmented and often confusing user experience. By embedding financial tools directly within an app that users already navigate frequently, Affluent aims to simplify the onboarding process for new users and attract seasoned crypto investors seeking a more efficient and integrated experience.
The Role of Stablecoins in Affluent’s Strategy
A key part of Affluent’s offering involves the use of stablecoins, which are increasingly seen as essential for decentralized finance applications. As part of its mission to create a seamless and stable financial environment within Telegram, Affluent will likely leverage stablecoins for lending, savings, and payment functions. Stablecoins provide an essential link between the crypto and fiat worlds by offering a digital asset pegged to a fiat currency, reducing volatility and allowing for smoother transactions in the DeFi ecosystem.
The stablecoins integrated into Affluent’s ecosystem, including the native USDM and USDA, aim to provide greater stability and reliability for users engaging with decentralized markets. Stablecoin-backed solutions, such as the ones Affluent will provide, are expected to attract a wide array of users - from retail investors seeking yield to institutions looking for liquidity solutions.
While Affluent’s ambitions are noteworthy, it faces stiff competition from other DeFi projects and traditional financial institutions exploring blockchain-based solutions. Ethereum, Solana, and Binance Smart Chain all offer well-established DeFi ecosystems, while new entrants like Layer-2 networks and cross-chain protocols continue to innovate in the space.
The key challenge for Affluent will be to stand out in an increasingly crowded DeFi space and convince Telegram’s massive user base to adopt cryptocurrency-based financial services. Additionally, issues like regulatory uncertainty surrounding stablecoins and DeFi could pose potential hurdles, especially as governments worldwide intensify their scrutiny of the cryptocurrency market.
Despite these challenges, Affluent’s integration within Telegram presents a unique advantage: it benefits from an established, global user base familiar with the platform’s user-friendly interface. The potential to onboard millions of users into the DeFi space without requiring them to leave their messaging app could give Affluent a competitive edge over more traditional DeFi projects.
Future of Affluent and Telegram’s Role in DeFi
Looking ahead, Affluent’s success could be a significant milestone in the ongoing evolution of decentralized finance, particularly as it shows how blockchain can be seamlessly integrated into everyday digital experiences. If successful, Affluent could drive wider adoption of DeFi by reducing entry barriers for users unfamiliar with cryptocurrency, as well as for businesses looking for cost-effective, blockchain-based solutions.
For Telegram, this move further solidifies its ambitions in the Web3 space and could place the app at the center of the global DeFi revolution. If the integration succeeds, Telegram could emerge as a leading platform for decentralized financial services, setting the stage for a broader shift towards integrated, blockchain-powered ecosystems.
Affluent’s vision to make Telegram a DeFi super app is an ambitious and exciting step forward in the evolution of decentralized finance. By combining the power of the TON blockchain with Telegram’s massive global user base, Affluent aims to provide seamless access to crypto-based financial services, potentially unlocking new liquidity paths and expanding the accessibility of DeFi for a broader audience.
As the project progresses, it will be interesting to see how the market responds and whether other tech giants will follow suit, integrating blockchain and DeFi into their own ecosystems. The success of Affluent could pave the way for a new era of financial super apps, where digital currencies and traditional financial services are seamlessly integrated.