Komodo, an open-source technology provider that offers all-in-one blockchain solutions and pioneer behind AtomicDEX which enables safe and instant swapping and transfer of assets between trader wallets without requiring AMMs, announced today it has successfully completed a peer-to-peer, cross-chain fundraise with Tokel, a tokenization infrastructure provider.
The fundraise employed a unique approach that ensures users can access tokens without using automated market makers (AMMs). Instead, for the first time, the fundraise relied on peer-to-peer, decentralized order books, introducing a more financially viable and more secure solution to fundraising.
Token fundraise hacks have continued to plague the space, with exploits on Uranium Finance – an AMM Uniswap clone built on Binance Smart Chain – losing $50M and Meerkat, also an AMM, for $31M.
Rather than using an automated market maker (AMM), AtomicDEX relies upon peer-to-peer, decentralized order books.
This new fundraising mechanism also enables reduced fees as the liquidity model ensures that investors can lock in specific exchange rates during the IDO without having to worry about slippage.
Previously, running IDOs on AMM-based DEXs like Uniswap have been problematic due to the algorithm-based bonding curve that determines price levels.
For example, some investors of UMA’s April 2020 IDO suddenly found themselves paying 10 times the intended IDO price, plus exorbitant gas fees on the Ethereum blockchain.
Komodo’s atomic swap powered DEX technology removes major obstacles from the equation for both projects launching their assets and participating cryptocurrency investors.
By using a peer-to-peer solution, AtomicDEX eliminates smart contract exploits and rug pulls – common issues that have led to massive loss of funds on other DEX and DeFi protocols.
Furthermore, 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 trading across multiple networks via a blockchain agnostic protocol. In addition to Komodo-based assets, Bitcoin, Ethereum, Binance Smart Chain, Dogecoin, and dozens of other blockchains are supported.
“We’re excited to have TKN become the newest coin listed on AtomicDEX and the first to use AtomicDEX to launch an IDO. This marks an important milestone for 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 CTO, Kadan Stadelmann
“Komodo offers a perfect solution, both for launching an independent blockchain with its own native coin and for integrating into a cross-protocol DEX. The on-chain trading fee for the KMD/TKL trading pair is less than a fraction of a penny, which is a considerable advantage overrunning an IDO on ERC-20 DEXs. Users who participate in the IDO don’t have 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 a secure, built-in non-custodial wallet for users to store their TKL coins.”
– Tokel Lead Developer, NutellaLicka
With the new mechanisms, the fundraise saw an investment of nearly $1,000,000 in Tokel (TKL).