Bitcoin

LuaSwap uses TomoChain for backend transactions

The number of projects using Layer 2 solutions to Ethereum’s scaling problems is increasing;; LuaSwap yesterday started a new exchange engine based on TomoChain.

The change will allow for an exchange inspired by Uniswap Perform token swaps faster and more efficiently than many other Automated Market Maker ERC-20 exchanges.

Although LuaSwap is still an Ethereum based application, Transactions related to conversion processes are now carried out using the TomoChain blockchain instead of Ethereum.

LuaSwap uses TomoChain for backend transactions
LuaSwap uses TomoChain for backend transactions

TomoChain uses block lengths of two seconds and has transaction fees that are considerably cheaper than the main Ethereum network.. This way, swaps that normally cost $ 10 or $ 20 in Ethereum can be executed in TomoChain for just a few cents.

A newly introduced TomoBridge enables any two assets to be transferred between the Ethereum and TomoChain blockchains using token wrapping.. The process uses a recent update to TomoChain, which allows any ERC-20 token to be packaged and imported into TomoChain as a TRC-21 token.

Nowadays, The transaction fees for LuaSwap are usually higher than the gas fees for Uniswap due to the lack of liquidity of the tokens on the bridge side of TomoChain. However, it is expected that this issue will be resolved when a sufficient number of liquidity providers have created LuaSwap pools on TomoChain.

TomoChain is just one of the second level solutions like Matic and Optimismwho claim to help solve Ethereum’s scaling problems.

January 19th TomoChain announced a partnership with Ramp DeFi to provide unique trading opportunities Made possible by recent advances in blockchain interoperability.

In November 2020, TomynChain’s director of business development, Kyn Chaturvedi, told Cointelegraph that he believed so Crypto traders are on a one-way path from centralized to decentralized exchanges, pointing out that the “trustworthy, anonymous, and easily accessible nature that comes with DEXs / DeFi” cannot be surpassed by traditional exchanges..

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