The number of projects using layer two solutions to Ethereum’s scaling problems is increasing LuaSwap rolling out a new TomoChain-based exchange engine yesterday.
The change allows the Uniswap-inspired exchange to execute token swaps faster and more efficiently than many competing Automated Market Maker ERC-20 exchanges.
1 / #LuaSwap version on @TomoChainANN blockchain is live, completely open to everyone $ TOMO and Ethereum projects
Users can now experience a different one $ LUA version with:
✔️ Super speed
✔️ Nearly zero gas costs
✔️ No network congestion
– LuaSwap (@LuaSwap) January 27, 2021
While LuaSwap remains an Ethereum-based application, transactions related to conversion processes are now conducted with the TomoChain blockchain instead of Ethereum.
TomoChain uses two second block lengths and offers transaction fees that are significantly cheaper than Ethereum’s mainnet. As such, swaps that normally cost $ 10 or $ 20 on Ethereum can be made for just a few cents on TomoChain.
LuaSwap is now live on it $ TOMO blockchain!
LuaSwap enables SMP trading for both $ ETH and TomoChain based tokens.
The big difference? Nearly zero gas costs. pic.twitter.com/FetZYqInFL
– Upblock (@upblock_io) January 27, 2021
A new one launched TomoBridge allows to transfer any two assets between the Ethereum and TomoChain blockchains by wrapping tokens. The process uses one recent upgrade to TomoChain, which can package any ERC-20 token and import into TomoChain as a TRC-21 token.
The Zorro Upgrade, @TomoChainANNThe latest mainnet version will pay the way for upcoming #LuaSwap implementation on TomoChain, with faster transactions and cost-effective gas fees
LuaSwap enthusiasts are ready to switch to #TomoChain?$ TOMO https://t.co/hbYW6ZMp3b
– LuaSwap (@LuaSwap) January 13, 2021
Currently, transaction fees on LuaSwap are often higher than gas fees on Uniswap due to a lack of liquidity for tokens on the TomoChain side of the bridge. However, this issue is expected to be resolved when a sufficient number of liquidity providers have established LuaSwap swimming pools on TomoChain.
TomoChain is just one of a number of layer-two solutions, including Matic and optimism aimed at solving Ethereum’s scaling problems.
On January 19, TomoChain announced a partnership with Ramp DeFi to provide unique trading opportunities enabled by recent advances in blockchain interoperability.
In November 2020, TomoChain Chief Business Development Officer Kyn Chaturvedi told Cointelegraph that he believes that crypto traders are one-way march from centralized to decentralized exchanges, noting that the ‘untrustworthy, anonymous, easy access that comes with DEXs / DeFi’ cannot be beaten by traditional exchanges.