The Landscape of TomoChain Decentralized Finance

Van Cam PHAM
Nov 13, 2019 · 8 min read

Stemming from a solution to the scalability problem in Ethereum and other blockchains, TomoChain has been fully operational and rapidly evolving its own diverse decentralized finance (DeFi) system.

Born in 2009, Bitcoin has been considered as the first DeFi application of blockchain, allowing anyone with an internet connection to make peer-to-peer, cross-border payments within around 10 minutes and with a transaction fee less than 10 USD (regardless of how much the transaction is carrying!.

(Source: https://btc.com/9899c22841e3ad6ce09b6d56536f37032ea33b0c0e2b9686b963c86626065c01)

Launched since December 2018, TomoChain Mainnet has been running stably with different financial applications/services allowing everyone with an internet connection, to access those services from everywhere all over the world.

If Bitcoin is considered as the first DeFi application, TomoChain will be the backbone of decentralized services built upon public blockchain and cryptocurrency technologies.

This article will walk you through the landscape of those DeFi applications and services on TomoChain.

What does TomoChain provide?

Decentralized Finance (DeFi)

Decentralized Finance (DeFi) is essentially about applications built using blockchain technology allowing anyone with an internet connection to access/use financial services based on blockchains

DeFi applications can be categorized into several application types that are briefly defined below. We will then show how these applications are supported in TomoChain.

Cross-border payment system

The payment system is a major part of any commercial application. P2P payments allow everyone to make fast cross-country good/service payments and to significantly reduce transaction costs compared to traditional banking/payment gateway systems. TomoChain with its native token TOMO can be integrated into any existing payment system and provide the following advana#3

Decentralized exchanges

Exchanges have always been a major part of the whole cryptocurrency ecosystem. As the security of centralized exchange has been becoming more and more concerned, decentralized exchanges will soon become the long term solution for exchanges and security. Making decentralized exchanges efficient, secure, and frictionless is a challenge for the whole crypto ecosystem in general.

TomoX is TomoChain’s decentralized exchange protocol that has the following advantages:

TomoX Testnet was successfully launched on 5th November. We invite all of you to enjoy the unique trading experience on our first Relayer on Testnet here. Around 140 entities have registered to launch relayers on our TomoX Testnet

TomoSwap is a token swap application that allows holders to instantly swap TOMO for other tokens. TomoSwap allows making atomic swaps between different tokens on TomoChain. MyConstant also allows TOMO holders to swap TOMO for the Constant stablecoin.

Staking

PoS networks use validators/block producers/masternodes who create, propose, or vote on blocks added to the blockchain. From the customer point of view, Staking is similar to interest savings account in a traditional bank. In DeFi, infrastructure service providers such as staking pools and Staking-as-a-Service providers play the role of the bank, running nodes for decentralized PoS protocols on behalf of investors.

On-chain standard Staking via TomoMaster

As a Proof-of-Staking-based blockchain, TomoChain provides on-chain staking services via TomoMaster through the Proof-of-Stake Voting consensus protocol. By holding TOMO, TOMO holders could either choose to run a masternode or vote for masternodes to receive rewards as follows:

Rewards payout is done every 30 minutes. TomoWallet has great support on voting and tracking staking rewards on TomoChain.

TomoPool — A decentralized layer 2 staking that allows to pool stakes from small stakers to create a bigger pool to run a masternode. Rewards earned by the pooling masternode is then proportionally distributed to all stakers. Staking in pools gives stakers higher rewards than on TomoMaster as there is no distinction between masternode owners and stakers.

Lending applications

Peer-to-peer (P2P) lending applications on blockchains allows removing intermediaries from the current lending system, thus significantly reducing execution costs. Compared to traditional lending platforms, blockchain-based P2P lending applications have the following advantages:

Constant is the pioneer P2P lending application on TomoChain. In Constant, there are no intermediaries between lenders and borrowers. All interact through a set of smart contracts. In order to make a USD loan contract, borrowers deposit TOMO or tokens to the smart contracts. The TOMO/USD rate is dynamic and depends on the current funds of TOMO and USD in the contracts. In order to borrower 100 USD, the borrower must deposit the amount of TOMO which is equivalent to 150 USD.

In order to secure the borrowed funds, the lenders are allowed to liquidate the deposited TOMO if TOMO price drops 33% compared to the price when the deposit is made.

A powerful platform for token issuance

As a public blockchain that aims for a token economy, TomoChain has developed a number of tools and token standards that ease token issuance and interaction.

Conclusion

Almost 11 months since the Mainnet Launch, TomoChain with a very healthy community has had a great achievement:

The recent TomoX Testnet Launch is TomoChain’s significant step for a broad and bright Decentralized Finance Ecosystem future. We look forward to to seeing a mass adoption of TomoChain’s technology in different services, not just in Decentralized Finance.

TomoChain

Welcome to TomoChain blog.

Van Cam PHAM

Written by

Blockchain Technical Researcher at Tomochain.com, PhD in Software Engineering

TomoChain

TomoChain

Welcome to TomoChain blog. Follow us to get the official news and good reads from TOMO team. Clap along if you feel like a room without a roof!

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