LuaSwap, the multichain protocol governed by the community launched on TomoChain today. With its implementation on TomoChain, the swap between TOMO and other TRC-based tokens will be possible. Effectively, users can use LuaSwap directly to swap tokens on TomoChain or Ethereum networks.
The focus of LuaSwap protocol is to support smaller liquidity pools of emerging tokens. Leading swap protocols like UniSwap and SushiSwap inspire the LuaSwap design. However, the tokenomics and operation strategy has been redesigned to perform better than the existing swap protocols.
What will LuaSwap enable on the TomoChain network?
According to Long Vuong, TomoChain founder, and CEO, Ethereum-based AMMs users face lots of challenges. The launch of LuaSwap protocol and TomoChain promises to fix those challenges. However, as Ethereum is a very important platform, cross-chain interoperability is an important part of TomoChain ecosystem. Here is what LuaSwap will enable on TomoChain:
Near-zero gas fees
LuaSwap protocol on TomoChain makes it possible for users to buy tokens at near-zero gas fees.
No Network Congestion
TomoChain offers two-second block times and a throughput of 2,000 TPS. Thus, the users will not face any network congestion as they face on Ethereum.
The protocol is interoperable with Ethereum. This means post-implementation any ERC20 can be brought to TomoChain.
No high gas fees
The protocol users can pick a token pair of their choice and provide it liquidity. Along with that, they can swap between assets, and yield farming without paying high gas fees.
LUA, the native LuaSwap token staking is possible via LuaSafe to earn passive income.
Intensive development phase
Since the initial launch of the LuaSwap on Ethereum, the project has come a long way. It launched LuaSwap Staking, Exchange, LuaSafe, and Proposal. Furthermore, it conducted the liquidity migration from Uniswap to LuaSwap exchange. It also wrapped LUA token for use on blockchains like Tomochain and Solana.
Moreover, the team also updated the cross-chain portal TomoBridge. Additionally, it enables the swap between LUA on Ethereum (ERC20) and wrapped LUA on TomoChain or Solana
TomoChain’s DeFi game
TomoChain launched TomoX protocol that enables anyone to create a DEX in a couple of minutes. Furthermore, TomoDEX was the first DEX built using TomoX and was launched in May 2020.
Recently, TomoChain underwent Zorro upgrade. This was one of the major upgrades before the LuaSwap implementation as it will enable the development of one of the most frictionless DeFi systems. Furthermore, the team also upgraded TomoBridge and TomoIssuer to enable issuing a wrapped ERC-20 token within a click.
In the last 30 days, the TOMO token price has surged by over 71%. Moreover, at the time of press, the TOMO token is trading a little over $1.1.
Here is what our TA experts think about TOMO.