The Singapore-based crypto exchange, TomoChain, will enable a new peer-to-peer (P2P) lending feature in 14 days through its TomoDEX’s platform. Based on their official announcement, TomoDEX is the first decentralized exchange, DEX, that is powered by the layer-1 protocol TomoX. TomoX is expected to have a maximum of 150 DEXs running on it.
Currently, it is in a soft launch with spot trading enabled. The DEX boasts a reported speed of 2,000 transactions per second. The CEO of TomoChain, Long Vuong, said that the P2P lending feature needs a trusted custodian and there will be no information asymmetry:
“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 the interest rate and position. Borrowers can flexibly back their loans through a choice of collateral, too, including BTC, ETH & TOMO.”
How It Operates
TomoChain is designed to rely on a system of 150 masternodes with Proof-of-Stake Voting, or PoSV, and consensus. It also relies on supporting EVM-compatible smart contracts, and protocols, together with atomic cross-chain token transfers.
Vuong believes that the platform is wholly permissionless and does not have any centralized component compared to many of the other hybrid-DEXs. Since its functionality is integrated directly into the base layer of theTomoChain blockchain, the TomoDEX can operate at the same speed as the blockchain:
“Users get a fast trading experience, close to that of any centralized exchange without the downsides of trusting a third party.”
The TomoDEX users do not need to hold the company’s native token, TOMO, as trades are wallet to wallet and fully on-chain. the Know Your Customer (KYC) process us optional for any DEXs that launch 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 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.”
Looking into the future, TomoChain told reporters that they aim to list other native blockchain tokens soon. This shows that the blockchain technology is growing despite the volatility experienced in the crypto markets.