Komodo, an open source technology provider offering an all-in-one blockchain solution and the pioneer behind AtomicDEX, which enables secure and instant exchange and transfer of assets between trader wallets without the need for an AMM, today announced that it has successfully completed peer-to-peer cross-chain fundraising with Tokel, a tokenization infrastructure provider.
The fundraising campaign uses a unique approach to ensure that users can acquire tokens without using an automated market maker (AMM). Instead, the fundraising campaign relies for the first time on a peer-to-peer, decentralized order book, introducing a more financially viable and secure solution for fundraising campaigns.
Token fundraising hacks continue to plague the space, with Uranium Finance – an AMM Uniswap clone built on the Binance smartchain – losing $50 million in vulnerabilities and Meerkat, also an AMM, losing $31 million.
AtomicDEX does not use automated market makers (AMMs), relying instead on a peer-to-peer, decentralized order book.
This new fundraising mechanism also results in reduced fees, as the liquidity model ensures that investors can lock in specific rates for the duration of the IDO without having to worry about slippage.
Previously, running IDO on an AMM-based DEX such as Uniswap was problematic because it was the algorithm-based bonding curve that determined the price level.
For example, some investors in UMA’s April 2020 IDO suddenly found themselves paying 10x the expected IDO price, plus high gas fees on the ethereum blockchain.
Komodo’s atomic swap-driven DEX technology removes a major hurdle for projects launching assets and for participating cryptocurrency investors.
By using a peer-to-peer solution, AtomicDEX eliminates the vulnerabilities and carpet-pulling of smart contracts – common problems that have led to the loss of significant funds in other DEX and DeFi protocols.
In addition, AtomicDEX extends IDO compatibility to dozens of blockchain protocols, many of which offer extremely low network transaction fees.
The AtomicDEX solution supports cross-chain, cross-protocol transactions across multiple networks via blockchain agnostic protocols. In addition to Komodo-based assets, Bitcoin, Ether, Binance Smartchain, Dogecoin and dozens of other blockchains are supported.
“We are delighted to have TKN as the latest coin to be listed on AtomicDEX and the first IDO to launch using AtomicDEX. this marks an important milestone in the expansion of our technology as we now offer a plug-and-play option for fair launch coins. I am confident that other projects will follow in Tokel’s footsteps.” – Komodo Chief Technology Officer, Kadan Stadelmann
Tokel is a project specifically focused on creating an unforgeable (NFT) infrastructure for the Komodo ecosystem, with a roadmap that includes an integrated NFT marketplace for AtomicDEX users.
“Komodo offers the perfect solution to both launch a standalone blockchain with its own native coins and integrate into a cross-protocol DEX. on-chain transaction fees for the KMD/TKL pair are less than a penny, which is a considerable advantage over running an IDO on an ERC-20 DEX. Users participating in an IDO do not need to interact with a smart contract when trading, so this fundraising mechanism is much more secure than what AMM-based DEXs offer. Another crucial benefit is that AtomicDEX provides users with a secure, built-in non-custodial wallet to store their TKL coins.” – Tokel Lead Developer, NutellaLicka
Under the new mechanism, the fundraising campaign saw Tokel (TKL) receive nearly $1 million in investment.