TomoDEX
TomoDEX (launched 2019) is the first Decentralized Exchange (DEX) powered by the TomoX protocol. It is built on a trustless public blockchain known as TomoChain and supports trading, lending and borrowing of variety of cryptocurrencies including Bitcoin, Ethereum and ERC20 Tokens. [1]
Company
TomoDEX was developed and operated by Singapore based blockchain company TomoChain Pte. Ltd. Its office is situated in Singapore and currently has around 50 employees. The company was founded by Vietnamese entrepreneur Long Vuong in 2017 and it raised over $9.3 Million via private and public token sales (ICO) from September 2017 to March 2018.[2]
Overview
TomoDEX is powered by decentralized protocol known as TomoX. It is integrated into the core layer of the TomoChain and is in charge of order matching and execution on TomoDex. The protocol permits a diverse system of DEXes, Market maker providers and other projects to work together in a decentralized way. It supports native token TOMO and TomoChain standard tokens, TRC21. It also supports other native tokens and major cryptocurrencies Bitcoin, Ethereum and Tether through cross-chain transfer module known as TomoBridge . [3]
TomoChain is Ethereum Virtual Machine (EVM) compatible blockchain which runs on Proof of Stake Voting (PoSV) consensus mechanism. It allows every Ethereum smart contract to run with almost instant transaction confirmation and it is secured by 150 Master nodes which are placed across the globe.[4]
Features
TomoDEX already has a great advantage because of compatibility with Ethereum. Some of the key features are:
Spot Trading
TomoDEX a Non-custodial decentralized exchange which allows spot trading of various cryptocurrencies including Bitcoin, Ethreum, Tomo, yEarn (YFI), Tether, VNDC, FTX token (FTT), Decentr (DEC) and Serum (SRM). The currencies are paired with either BTC or USDT or TOMO. Minimum order size must be greater than 1 TOMO in pairs corresponding to USDT, BTC or ETH. Traders are allowed to set both market and limit orders. All trades are entirely non-custodial, and liquidity will be shared with other TomoX DEXs through a common on-chain order book.[5]
Lending
TomoDEX allows users to earn interest by Peer-to-peer lending of cryptocurrencies. Currently It supports only Tether (USDT) and TOMO token. Lending is allowed over a periods of 1 day, 1 week and a 1 month and 3 months. Collateralized assets are stored safely in smart contracts secured by the TomoX protocol. It also allows users to set their own interest rates and terms as well.[6]
Borrowing
For borrowing User need to deposit Collateral of 150% of total Loan value. Currently, collateral accepted in BTC, ETH, TOMO and support for other major alt coins will be added in near future. Borrower has to pay interest to the Lender and that is calculated by I=F∗R∗ T/365 where I=Interest Rate, F= Original Amount Borrowed, R= Annual Interest Rate and T= Term Duration (e.g. 1 day, 30 days etc.). If Borrower fails to repay the loan and interest before the due date, By default, if the Borrower has enough balance of the borrowed asset, TomoX will automatically repay the loan on the due date. In other case he will be liquidated.[7] He/She will also be automatically liquidated if the collateral value falls to 110% and it will be released to the Lender’s Address.[8]
How to borrow on TomoDEX
Interestingly, if borrower wants to pay the loan early, he will be charged an additional prepayment penalty ( which is equal to half of the interest rate he would have had to pay from that point till the maturity date) along with normal interest. Also, no partial repayment is allowed as well.[9]
Fees
TomoDEX doesn't take any deposit or withdrawal fees but Users need to play fees to TomoChain depending on selling, buying or borrowing actions. Typically, they are categorized as Trading Fees and Lending Fees.
Trading Fees
Trading Fee is charged in the Quote Token at the time the order is matched. e.g in TOMO/ USD pair base token is TOMO and Quote token is USDT and Trading fee will charged in USDT. The cancellation fee will be charged at the time that the trader cancels his/her order. The Trader’s Cancellation fee is equal to 1/10 of the Trader’s trading fee in the Base Token if as a seller and in the Quote Token if as a buyer. Trading fees are as follows..
| Type | Seller | Buyer |
|---|---|---|
| Trading Fees | 0.1% | 0.1% |
| Cancellation Fees | 0.01% | 0.01% |
Lending Fees
Lending fees are generally have two types service fee and cancellation fee. For example: If a user wants to borrow 1,000 USDT, he will be charged a service fee of 0.5% * 1,000 = 5 USDT.
| Type | Lender | Borrower |
|---|---|---|
| Service Fee | Free | 0.5% of total loan amount payable in Lending Token |
| Cancellation Fee | 0.05% of total loan amount payable in Lending Token | 0.05% of total loan amount payable in Lending Token |
Supported Wallets
TomoDEX supports a variety of login options including Private key and Mnemonic Phrase. The User also has an option of creating a TomoChain wallet in wallet section. It also has another support i.e Pantograph Extension for Tomo wallet. As TomoChain is EVM compatible blockchain user can also log with Ethereum wallets like Metamask or hardware wallet like Ledger Nano S.
Portfolio
Users can also track and manage their digital assets and can send or receive any cryptocurrency listed on TomoDEX.
TomoBridge
To trade, lend or borrow other assets than Tomo on TomoDEX User need to first convert other natives tokens like BTC, ETH, ERC20 tokens to TRC21 tokens using TomoBridge. It is a cross-chain portal wrapping digital assets from other platforms to TRC21 Wrapped Tokens on TomoChain. Currently, It supports ETH, BTC and USDT, FTT, VNDC, DCR and SRM and will continue to support more coins in the future. When user wants to withdraw his assets, he can easily unwrap desirable TRC21 asset, but there is a fee for unwrapping. The user also has to pay small transaction fee to the particular network additionally.
How to use Tomobridge to wrap and unwrap tokens
| Digital Asset | Deposit(Wrap) Fee | Withdrawal(Unwrap) Fee | Transaction Fee |
|---|---|---|---|
| BTC | 0 | 0.0004 BTC | 0.0000004 BTC |
| ETH | 0 | 0.003 ETH | 0.000003 ETH |
| USDT | 0 | 0.97 USDT | 0.001 USDT |
| YFI | 0 | 0.001 YFI | 0.000001 YFI |
Relayer Web
Relayer Web provides an intuitive and optimal user interface for users to use the exchange functionalities. More importantly, users do not need to deposit any tokens to a centralized server, thus maintaining total control over their assets. As in any existing exchange, there are two types of actors:
- Maker: A market maker is someone who provides liquidity to the market by placing limit orders on the order book. Without limit orders sitting on the books, the price of cryptocurrencies would swing around wildly as exchanges try to match buy and sell orders.
- Taker: A taker is someone who takes liquidity (buys/sells from a limit order) from the exchange.
A maker order has to wait to be matched by either a taker order or by the matching engine. A taker order, on the other hand, does not need to go onto a matching engine, but is instead immediately matched with a maker order.
How to become a Relayer
In order to become a relayer and receive trading fees, a relayer owner must deposit 25,000 TOMO to the TomoRelayer smart contract. This process is also used to transfer relayer ownership to another relayer owner.
The 25,000 TOMO deposit will be divided into 2 parts:
- Locked Funds: 20,000 TOMO will be locked and only be available for withdrawal 30 days after the relayer owner makes a decision to resign.
- Trading Fee Fund: 5,000 TOMO will be used for paying network fees, and be deducted from as fees are sent to masternodes for handling trades and order processing.
