Smart contract company TomoChain is finding solutions to slash gas fees for platforms running on Ethereum. In its first major project, the Singapore-based startup has allowed Ethereum-based coin swap, LuaSwap, to run on its blockchain.
The idea is that LuaSwap, which lets users swap a number of tokens, will still be an Ethereum project — but will also use TomoChain’s blockchain to process transactions at lightning speed with near zero gas fees.
Both projects are promising to change the bad rap Ethereum has been getting for its exorbitant fees.
What is TomoChain?
Smart contract platform TomoChain uses an innovative consensus method called PoSV (Proof of Stake Voting) which gives an incentive to all TomoChain token-holders to play an active part in staking across a network of 150 high-quality Masternodes.
It is working solely to help the Ethereum projects function more efficiently by providing solutions to their blockchains.
It has said it will become a “major DeFi enabler.”
What does this mean for DeFi?
Decentralized Finance applications exploded last year. These experimental but revolutionary projects say they will change the way people will get loans or lend money. But the issue is, most run on the Ethereum network — and it is under pressure.
Ethereum has long struggled with scalability issues: the network has become too congested as the more people want to use it. An upgrade to the system, ETH 2.0, is hoping to change this— but it hasn’t been released yet.
A single trade on decentralized exchanges like Uniswap or SushiSwap can require over $20 in gas fees, for example. TomoChain is working to change this.
So what have they done?
TomoChain has let LuaSwap become a part of its DeFi ecosystem.
By allowing the coin swap platform (developed initially by TomoChain) to run on its platform, the app runs quicker, more efficiently and much cheaper than other coin swap platforms.
Whether you are swapping UNI for SUSHI or USDC for ETH, LuaSwap says this gas tokens will be paid for and will be faster than if it were to run on Ethereum alone, with 2 second block times and more than 2,000 transactions per second.
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Source: New Tomochain Solution Sees Gas Savings For Traders, LuaSwap AMM Joins Network