what's TownSquare?
TownSquare is a decentralized finance (DeFi) lending protocol native to the Monad blockchain. It provides a platform for users to deposit cryptocurrencies as collateral to earn yields from lending activities or borrow assets against their holdings in a non-custodial environment. Built to leverage Monad's high-performance EVM compatibility, the protocol facilitates efficient liquidity provision and utilization within the ecosystem. The lending mechanism operates through liquidity pools where suppliers contribute assets to generate interest, while borrowers access funds by over-collateralizing positions to mitigate risks. Supported assets include native tokens like MON and stablecoins such as USDC, along with wrapped variants like aprMON and sMON. TownSquare emphasizes community engagement through testnet incentives, NFT collections, and faucets to bootstrap adoption ahead of mainnet launch.
TownSquare pitches at Liquidity Day with Cicada MM on Jan 29, 2026, to top LPs.
Links
x.com/townsquarexyzWill pitch at Liquidity Day co-hosted with Cicada MM on January 29, 2026 at 18:00 GMT+4, streamed live to the network's top liquidity providers.
The lending platform does not offer LST-MON leverage loops, which a trader criticizes as a major strategic oversight at launch given the 14% MON staking APY and the success of similar mechanisms on Solana for driving DeFi TVL.
shMonad (shMON) becomes accepted as a collateral asset on the lending protocol.
A trader reports TownSquare displays high APYs on Monad comparable to DeFi summer 2020 levels but expresses fear about deploying substantial capital.
A user testing TownSquare on Monad mainnet reports non-functional MON deposits and questions displayed TVL accuracy, stating the protocol is not ready for scale.
A crypto trader publishes a post-Monad listing watchlist featuring TownSquare as one of the top projects worth attention for early exposure to Monad's first wave, highlighting its modular lending features with multiple independent loans under one wallet and efficiency mode for MON/MON-LST.
TownSquare selects RedStone Bolt as its primary oracle provider on Monad from day one.
Monad co-founder Keone publicly lists TownSquare among Monad apps he's excited about.
TownSquare enables cross-chain lending and borrowing on Monad using Chainlink CCIP and Price Feeds integration.
TownSquarexyz is listed as a lending protocol to watch for the upcoming Monad mainnet launch.