Tokenlon DEX Review
Open finance and decentralized, trustless payments have continued to grow, especially in the cryptocurrencies space. Exchanges and their operations have also grown in popularity and acceptance, among crypto enthusiasts and the larger finance sectors, as a standard for exchanging cryptocurrencies. Tokenlon Exchange is one such provider, and this is a complete review of their services.
Thanks to blockchain technology, decentralized finance is used to perform several aspects of financing and liquidity provision. Several protocols have been built that perform several functions in the financial systems and economy, both in the traditional financial systems and in the cryptocurrency markets.
We have seen several liquidity markets emerging with the innovations of decentralized finance. Each of these liquidity markets perform specific functions; some include lending markets, insurance markets, markets for trading, payment protocols/networks, sales protocols, markets for derivatives, etc.
These decentralized finance innovations have pushed developers and users to the heights of having more control over their assets and funds. These control and trustless operating in the decentralized finance ecosystem are made possible through smart contracts built on blockchains. With the innovation in decentralized finance, open finance would eventually become adopted by everybody, including the government institutions.
Tokenlon is a decentralized finance platform and exchange which processes payments across platforms, serving as a bridge to connect several decentralized finance platforms. Tokenlon enables transactions and processes cross-chain payments for other payment protocols.
Tokenlon serves as a global finance payment infrastructure and liquidity aggregator, considering the current problem of separated liquidity suffered by many of the current finance protocols.
|39 coins traded with 76 trading pairs currently
|Yes, on imToken wallet for trading
|Required for large trades
|1 to 2
|Web-based and wallet app
|Website, Discord, Twitter, Medium, Weibo
What is Tokenlon?
In simple terms, Tokenlon is a payment settlement protocol and a decentralized exchange. The Tokenlon exchange is a typical decentralized exchange running on the Ox protocol and built on the Ethereum blockchain. The Tokenlon network was built to serve as a cross-bridge payment settlement network protocol for cross-chain transaction processing.
The Tokenlon protocol has its native token, the LON, which is the governance token of the network. Tokenlon is a smart contract-based decentralized trading platform hence, the reason it uses the ox protocol smart contract. The ox smart contract protocol of the ox network is built and run on the Ethereum network blockchain.
The Tokenlon decentralized exchange is an instant swap exchange, where market makers constantly provide the best price quotation for traders. Traders place their trade orders using this price quotation provided by market makers; the trade order is signed instantly and sent to the ox smart contract protocol. The ox smart contract protocol performs an instant swap of the token to the choice token, which the user clicked to swap for.
The transaction is processed instantly, and the user receives the required token into their imtoken wallet after just one or two Ethereum block confirmations. The team behind the Tokenlon decentralized exchange decided to use the ox protocol smart contract in connecting to the Ethereum network blockchain. This was for the fact that the ox protocol allows users to swap and trade ERC-20 tokens to be traded at lower fees on the Ethereum blockchain directly from their wallets.
Tokenlon, as a decentralized exchange, has an off-chain market maker matching system which it works with, an on-chain settlement mechanism using a smart contract of the ox protocol network. After the on-chain settlement, the token swap is carried out instantly on the Ethereum network blockchain with just one or two block confirmations.
Tokenlon decentralized exchange is a secure, trustless platform for a token-to-token exchange based on the ox protocol. The exchange ensures an instant trade confirmation in seconds, immediately users finalize their desired trading price and go-to trade. The trade is confirmed instantly with an instant swap of the token pair the user is trading.
The Tokenlon decentralized exchange offers its users an extra layer of security and confidence when they are trading. The exchange requires face ID and fingerprint from users for single large volumes of trade; the exchange may require an imKey hardware wallet from users for large trades.
The Tokenlon exchange allows users to perform tokens trade wallet to wallet and fully own their cryptos. Tokenlon decentralized exchange has its network token: the LON. The LON token plays a vital role in the community governance of the network. It is used for voting on major changes, improvements, and every other issue in the governing of the network and the community.
The Tokenlon protocol provides users with payment processing and exchange settlement. At the same time, the protocol specifies the financial network for users’ payment processing.
The Tokenlon protocol connects users with market liquidity and also brings liquidity providers to users of liquidity. The liquidity providers have diverse supply mediums for liquidity, which are fragmented and have risk uncertainties.
The Tokenlon ecosystem has a three-tier structural layer that satisfies the needs of all parties in the ecosystem. The three-tier structural layers include:
- Application Layer
- Market Liquidity
- Settlement Layer
This application layer has the major functionalities of the ecosystem, the decentralized exchange platform, and the payment platform. The application layer gives API access and standard SDK to developers to integrate the exchange functionalities into other applications. This would help give users an alternative, easy-to-use interface, and access to the exchange and its various functionalities.
The market liquidity layer specifies liquidity settlement strategies based on the sources of the liquidity. This settlement strategy is determined using the smart contract. The smart contract aggregates the liquidity sources, determines the best exchange rate, and resolves counterparty risks.
Automatic settlements are guaranteed from the smart contract, which completes transactions without counterparties trusting each other. There are several sources of market liquidity on the Tokenlon ecosystem. The major liquidity providers include: RFQ, Order Book, AMM, Money Market and Users.
The settlement layer connects transacting parties, with trades getting settled based on digital signatures, using smart contracts. This settlement is based on the previously set conditions on the smart contract strategy for liquidity sources settlement. The settlement layer is run on the Tokenlon network.
Tokenlon has an off-chain system with three distinct parts: relayer, aggregator, and liquidity providers. The relayers operate the relay nodes in a peer-to-peer form, providing order routing services. The aggregator matches users’ orders by integrating multiple liquidity sources. The liquidity providers ensure the liquidity from various sources are integrated to give users the best routes for liquidity.
Tokenlon generates liquidity from outside of the ecosystem and not just from within the ecosystem. Tokenlon has a special token, the imBTC, an Ethereum token that is pegged 1:1 to the value BTC. Holders of imBTC can mint their token, redeem, swap, and receive income from holding their imBTC on the Tokenlon protocol.
Tokenlon Trading services
The Tokenlon decentralized exchange offers a large variety of trading services. The largest and most popular of them is the instant swap of tokens, defined by the exchange. Other trading services offered by the Tokenlon exchange are staking, trade mining, liquidity mining, and buyback.
The Tokenlon decentralized exchange supports the trading of 39 coins/tokens at the moment and 76 trading pairs. The cryptocurrencies currently supported on the Tokenlon decentralized exchange are: LON, WBTC, ETH, UNI, CRV, BNT, SUSHI, 1INCH, LRC, HT, KNC, YFI, ZRX, BAT, LINK, AAVE, MKR, DPI, COMP, MANA, ENJ, REN, OMG, ZKS, ALPHA, IMBTC, FTM, RUNS, NFTX, MATIC, USDC, TUSD, HUSD, BUSD, BAL, SNX, MTA, SAND, MCB, GRT, LUNA, GTC, CHZ, MEME, FEI, WOO, and TORN.
More cryptocurrencies would be listed on the Tokenlon exchange in the future.
Trade mining on Tokenlon decentralized exchange is the process of putting your LON to the trade mining pools to get rewards. The rewards gained from trade mining are calculated based on the power generated from transactions. Power rewards are from Tokenlon users who generate a net contribution, become relayers, liquidity providers, or referrers.
LON Staking on Tokenlon centralized exchange allows users to stake their LON to receive xLON as a staking certificate that captures staking rewards. The value of the received xLON increases with the staking rewards distributed proportionally. The ratio of the xLON: LON is greater than or equal to one, meaning the value of xLON is always more than LON, or the same at the least.
At the end of each staking, users who staked their LON get their initial staked LON and newly rewarded LON. In a situation where the trader wishes to unlock their staked LON, before the end of the staking period, they would unlock their LON and wait for a cooldown period of 7days to be able to receive their staked LON and reward.
If users decide they cannot wait for the cooldown period, they can get their LON immediately with a 5% charge covering both initial LON and interest. Currently, there are 12,334,059.69 LON staked and an APY of 38.58% on the Tokenlon decentralized exchange.
The LON Buyback program on the Tokenlon decentralized exchange enables Tokenlon to buy back LON on the open market using trading fees collected by the Tokenlon protocol. The bought back LON is put back into the LON treasury to be used for the staking rewards. LON tokens are also minted to be used for trade mining rewards. Currently, 2,417,130.74 LON tokens have been bought back; the same 2,417,130.74 LON tokens have also been minted.
The Tokenlon decentralized exchange has a standard fee structure. For transactions carried out on the Tokenlon exchange, users are meant to pay a flat fee rate of 0.3% of their transaction amount. The 0.3% fee is the instant exchange fee. Users may also pay fees on slippage depending on the congestion of the Etheruem network when their transactions are processed.
The Tokenlon exchange uses the RFQ and AMM quotation mechanism. Hence, users would be charged a slippage fee depending on which quotation mechanism their order is corresponding to. Users will not be charged a slippage fee if their order corresponds to the AMM quotation but users will pay a slippage fee if their order corresponds to the RFQ quotation.
Users are also allowed to set their slippage rate, and it should be acceptable, for if the transaction slippage is above the set slippage range, the transaction would not be processed. Users also have to pay miner fees for any transaction they send on the Tokenlon protocol; transactions are performed and carried out on-chain and not off-chain.
Tokenlon Withdrawal and Deposit Fees
The Tokenlon decentralized exchange has no specific withdrawal or deposit fee because trades on the exchange are based on the wallet-to-wallet model. The exchange is decentralized, so whatever transaction users carry out is directly into their wallet or out of their wallet.
Hence users pay network fees based on the 0.3% rate for all instant exchange transactions. The imtoken wallet is the major wallet for the transaction and interacting with the Tokenlon exchange. This imToken wallet is owned by Tokenlon.
The Tokenlon decentralized exchange has a very robust API for developers to integrate exchange functionalities into other applications. These integrations would help to expand the reach of the exchange and help in its decentralization drive. The Tokenlon exchange has two major API access points, currently, which the exchange supports. They are:
RPC API: https://www.tokenlon-core-market.tokenlon.im/roc
The RPC APIs include: getMarket, getTokens, getPairs, getTicker, getTickerHistory, getTradeCap, and getTradeCapHistory.
The Restful APIs include: Get_market, Get_tokens, Get_pairs, Get_ticker, Get_ticker_history, Get_trade_cap, and Get_trade_cap_history.
Tokenlon Limits and Liquidity
Tokenlon decentralized exchange has no limit to the number of transactions or volume crypto users can trade on the instant exchange. The limits to trading pairs or tokens that apply to trades on the Tokenlon exchange are dynamically adjusted about the market maker’s ability to supply liquidity or the liquidity of the token. The liquidity of the Tokenlon exchange is enormous and supplied from 5 major sources or liquidity blocks.
Tokenlon exchange has numerous cryptocurrencies traded and supported on its instant exchange. Thus, the exchange is widely diversified and suitable for large portfolio owners to diversify their investments and portfolio. The 76 pairs traded currently on the Tokenlon decentralized exchange provide a good opportunity for constant liquidity and portfolio diversification.
Cryptocurrencies Available on Tokenlon
There are several cryptocurrencies currently traded on the Tokenlon exchange and they include:
LON, WBTC, ETH, UNI, CRV, BNT, SUSHI, 1INCH, LRC, HT, KNC, YFI, ZRX, BAT, LINK, AAVE, MKR, DPI, COMP, MANA, ENJ, REN, OMG, ZKS, ALPHA, IMBTC, FTM, RUNS, NFTX, MATIC, USDC, TUSD, HUSD, BUSD, BAL, SNX, MTA, SAND, MCB, GRT, LUNA, GTC, CHZ, MEME, FEI, WOO, and TORN.
These numbers would increase in the future with the growth and expansion of the Tokenlon decentralized exchange.
Tokenlon decentralized exchange has a very user-friendly interface, which is very easy to use and navigate. The Tokenlon exchange enables its users to integrate seamlessly to its exchange functionalities using its APIs and other external plugins.
How secure is Tokenlon?
The Tokenlon decentralized exchange is highly secured with several security measures put in place by the Tokenlon team. Third-party professional security audits have been carried out on the exchange contract address, in addition to the internal security measures implemented by the exchange.
The Tokenlon internal security measures include:
Transaction Atomicity is built into the smart contract of the Tokenlon protocol, which is designed to ensure the atomicity of the transaction settlement carried out on the network. The transaction atomicity ensures that every transaction meets the conditions for processing for it to succeed or fail.
Contract Authorization and control ensures that a time lock delay is put to update the time of transactions for administrators to make corrections in case of a mistake. This time lock is put for transactions and operations involving users to avoid loss of funds.
Tokenlon Customer support
The Tokenlon exchange has several channels for the support of its users and solving their issues. These customer support channels are very active across social media platforms; they include:
The official website of the Tokenlon exchange, where you can also get customer support and further information about the exchange, is tokenlon.im.
To reach out to Tokenlon exchange customer support on Twitter, use @tokenlon.
Tokenlon also has a strong presence on discord where you can also get customer support. To reach out to Tokenlon exchange, use the #tokenlon.
This is another platform where Tokenlon has an active presence and where you can get your issues sorted. To reach out to Tokenlon on medium use @tokenlon.
Tokenlon has a customer support channel on Weibo. To reach out to Tokenlon on Weibo, use tokenlon.
Tokenlon exchange has a robust decentralized exchange that is well built with plans for future integration of other Apps and applications. The exchange has a goal of becoming a global payment platform and becoming a liquidity aggregator. Do your due diligence, then decide on investment, as this review is not financial advice.
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