Categories: News

LuaSwap using TomoChain for backend transactions

Automated token exchanger LuaSwap is cutting costs by employing a second-layer alternative to transacting on the heavily crowded Ethereum mainnet.

The number of projects adopting layer-two solutions for Ethereum’s scaling woes is increasing, with LuaSwap rolling out a new, TomoChain-based exchange engine yesterday.

The change will enable the Uniswap inspired exchange to perform token swaps with greater speed and efficiency than many rival Automated Market Maker ERC-20 exchanges.

While LuaSwap remains an Ethereum-based application, transactions related to conversion processes are now performed using the TomoChain blockchain, instead of Ethereum.

TomoChain employs block lengths of two seconds, and boasts transaction fees that are considerably cheaper than Ethereum’s mainnet. As such, swaps that might normally cost $10 or $20 on Ethereum can be executed for just a few cents on TomoChain.

A newly launched TomoBridge makes it possible to transfer any two assets between the Ethereum and TomoChain blockchains by wrapping tokens. The process leverages a recent upgrade to TomoChain, which allows any ERC-20 token to be wrapped and imported to TomoChain as a TRC-21 token.

At present, transaction fees on LuaSwap are often higher than gas fees on Uniswap due to a lack of liquidity for tokens on the TomoChain side of the bridge. However, said problem is expected to be resolved when a sufficient number of liquidity providers have created LuaSwap pools on TomoChain.

TomoChain is just one of a number of layer-two solutions, including Matic and Optimism that aim to help to resolve Ethereum’s scaling issues.

On Jan. 19, TomoChain announced a partnership with Ramp DeFi to provide unique trading opportunities made possible by recent developments in blockchain interoperability.

In Nov. 2020, TomoChain chief business development officer Kyn Chaturvedi told Cointelegraph he believes crypto traders are on a one-way march from centralized to decentralized exchanges, noting that the “trustless, anonymous, easy access nature that comes with DEXs/DeFi” cannot be beaten by traditional exchanges.

[…]
Learn more

crypto

Leave a Comment

Recent Posts

Mt. Gox Bitcoin Movements: Market Impact and Ex-Client Risks

The defunct cryptocurrency exchange Mt. Gox is making waves again, this time with huge Bitcoin…

4 months ago

Taproot Assets: Revolutionizing Bitcoin’s Lightning Network

Lightning Labs, a leading developer in Bitcoin's Lightning Network ecosystem, has launched a groundbreaking protocol…

4 months ago

Whale With Ethereum Foundation Link Transfers 92,500 ETH Worth $288M 

According to onchain data, a significant whale holding over 92,500 ether moved the funds to…

4 months ago

Discover the Skinny Bob MemeCoin: NFTs, Multi-Chain, and Cosmic Humor

🛸Inspired by the internet's favorite extraterrestrial, Skinny Bob MemeCoin is revolutionizing the cryptosphere across multiple…

4 months ago

Uncovering the Risks of NFTs for Creators and Buyers

NFTs, or non-fungible tokens, are transforming various industries, including art, music, sports, and real estate.…

4 months ago

Proton Technologies AG Unveils Open Source Bitcoin Wallet

Proton Technologies AG, the Swiss company renowned for its encrypted email and VPN services, has…

4 months ago