Tofuswap V2 Factory released on the TRON mainnet

TofuProject
Mar 27 · 3 min read

We are very happy to inform that we released Tofuswap V2 Factory contract on TRON mainnet. Also we created three pairs: BTC/USDT, ETH/USDT and TOFU/USDT.

Tofuswap V2 Factory contract address is:

What is Tofuswap Factory contract?

It’s the core contract of Tofuswap infrastructure. It is used to create trading Pairs on Tofuswap pool.

What is the main focus of Tofuswap?

Main focus of Tofuswap is cost-effective automated TRC20 token exchange on the TRON network. Right now the most popular token exchange platform on TRON is Justswap. It’s a great platform, but it works only with trading pairs to native platform token TRX. It means that if you want to exchange BTC token to USDT token on Justswap, it will exchange BTC to TRX first and then exchange TRX to USDT token. Even though it will happen in one transaction and energy effective, you will have to pay 0.6% fee (0.3% BTC/TRX pair and 0.3% USDT/TRX pair). With Tofuswap you will pay 0.3% or lower depending on what how much TOFU you have.

Let’s compare fees if you want to exchange 1000 USDT to BTC assuming that exchange rate are the same. In case of Justswap you will pay 0.6% fee (6$) + spend 80k energy or about 11.2 TRX which is about 0,7$ in the moment of writing. With Tofuswap you will pay 0.1–0.3% fee (1–3$) + 10 trx for energy which is about 0.6$ now. So your fee will be significantly lower*.

*Of course you should consider slippage and liquidity, because it also affects your trade, especially for large amounts.

How to get discount on Tofuswap?

If you have TOFU you can trade with lower fees compared to standard 0.3%. Depending on how many TOFUs you have you can get these actual discounts:

100 TOFU — 0.25% trading fee (16,66% discount)

1000 TOFU — 0.2% trading fee (33,33% discount)

10000 TOFU — 0.15% trading fee (50,00% discount)

100000 TOFU — 0.1% trading fee (66,66% discount)

To get discount you will have to “freeze” you TOFU with TofuFreezer contract.

Who can create trading pair on Tofuswap?

To avoid creation of pairs with fake or spam tokens by malicious actors we decided that only governors will be able to create a trading pair. So, there are three ways to create trading pair on Tofuswap. First one is to become a governor. Technically it means that you need to hold/freeze 100000 TOFU on TofuFreezer contract. Second one is to ask some governor to create it for you. And third one is community voting on your token or pair. If community will decide that some token is good to add, we will add up to four trading pairs with other tokens or TRX on request.

How liquidity providers will be rewarded?

Liquidity providers will collect fees from traders the same way as in other liquidity pools. Except that we reserved 40,000,000 TOFU tokens to reward liquidity providers and users. Rewards will depend on staked volume and trading pair. Community will vote which pairs should be rewarded. Right now we assume that half of remaining reserved tokens will be distributed every four years, i.e. 20,000,000 TOFU tokens (50% of reserved tokens) will be distributed within first four years, 10,000,000 TOFU will be distributed within next four years after that and so on. But this can be subject to change if community decide to alternate this approach.

What’s next?

Now we are waiting for security audit of the contract to proceed with launch.