TomoChain is a cryptocurrency exchange based in Singapore. They have launched a new feature that is peer-to-peer lending in their TomoDEX platform.
As announced in their website, TomoDEX is the first DEX (decentralized exchange) using layer 1 protocol TomoX that is capable of running a maximum of 150 DEXs on it and also boasts to achieve 2000 transactions in a second.
The CEO of TomoChain, Long Vuong, mentioned that there will be no requirement in having a trusted custodian.
“All functionality is handled through auditable smart contracts and secured by the TomoChain blockchain. The P2P lending service uses a unique and familiar spot trading order book approach to provide fixed-term USDT loans of 1, 7, 30 and 90 days based on interest rate and position. Borrowers can flexibly back their loans through a choice of collateral too, including BTC, ETH & TOMO,” Vuong noted.
With a system running of 150 masternodes using PoSV, which is the Proof-of-Stake Voting, consensus TomoChain is said to be able to support EVM-compatible smart contracts, protocols and atomic cross-chain token transfers.
Vuong mentioned that the TomoDEX “is entirely permissionless and has no centralized component, unlike most other hybrid-DEXS”. He also said that TomoDEX is able to operate at the same speed as the blockchain due to its integrated functionality directly into the base layer of the TomoChain blockchain.
“Users get a fast trading experience, close to that of any centralized exchange without the downsides of trusting a third party.”
The company has made in such a way that users do not need to hold TOMO, the native token from the company, to use the TomoDEX. Trades are wallet-to-wallet and solely relying on chain. Apart from that, the KYC, Know-Your-Customer, process is not compulsory for other DEXs that are launching on TomoX.
“TomoDEX is a facilitator that does not custody user funds or manage user accounts in any way unlike that of a traditional centralized exchange, so the onus is on the trader to be responsible for reporting gains and losses in their local jurisdictions. That said, we will observe and abide by crypto regulations as they form, and comply as is required.”