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In the letter
- Decentralized exchange Tokenlon is allocating 10 million of its 200 million supply of LON tokens to users over the next 50 days.
- Tokenlon uses API 0x to combine off-chain and on-chain actions to get the best price to traders while maintaining control of their tokens.
- Tokenlon was spun off from the broader imToken product offering in July 2019.
Decentralized exchange Tokenlon is entering a new phase of its liquidity mining program, offering rewards to the entire spectrum of exchange participants who get its unique DEX design.
Tokenlon, an Ethereum-based exchange, today announced Phase 2 of its liquidity mining incentive program will begin on October 31, rewarding both traders and liquidity providers with LON tokens, which are used to pay trading fees on the platform, similar to Binance’s BNB token.
Tokenlon’s rising monthly volume, which approaches $ 1 billion for October, shows there is still room for growth even as decentralized trading volumes decline during a battle with their centralized counterparts for users and their own. trading fees.
Decentralized Exchanges (DEX) use automated code blocks known as smart contracts to allow users to exchange crypto tokens without a centralized third party, such as a bank, to facilitate the process.
Tokenlon uses 0x trade bees under the hood to power a unique business matching system. User orders are sent and evaluated off-chain, comparing different centralized and decentralized sources of funds, before being executed in on-chain swaps using smart contracts. This should help traders get a better price.
Liquidity incentive programs offer rewards to users of an exchange protocol for using the service. The second phase of the Tokenlon incentive program will award 10 million LON tokens to traders and market makers who contribute to the liquidity pools on Tokenlon over the next 50 days; 4 million LON of the total supply of 200 million was awarded to the merchants in the first phase.
The LON token address has not yet been released, so LON token allocations are not transferable for now. LON tokens will be used to pay trading fees on the DEX, which plans to release 65% of LON tokens to the community through the staged incentive program.
“The introduction of improved liquidity will allow Tokenlon to bring its secure and affordable decentralized trading experience to more users around the world, providing them with the most competitive listing and depth in the industry,” Lucas said in a press release. Huang, responsible for the growth of Tokenlon.
Singapore-based Tokenlon represents one of the most successful decentralized exchanges of October, expansion of trading volume by more than 65% over last month. In comparison, the largest DEX by volume, Uniswap, saw volume decrease by almost 30% and overall DEX volume decreased by 28%, according to blockchain data aggregator Dune Analytics. Tokenlon is still a small operation by comparison, processing less than $ 1 billion in October compared to Uniswap’s over $ 10 billion.
Tokenlon was founded in 2017 as part of the broader imToken digital asset portfolio product offering. Tokenlon, originally used within the imToken wallet as a token exchange tool, was split into an independent decentralized exchange in July 2019.
