Trading fees on tomo DEX

Hello,

I couldn’t find information in Tomo DEX documentation where the trading/lending fees goes to. Are they going only to DEX Relayers, does some of it goes to the Masternodes?

Hi,

All the trading/lending fees would be paid to DEX Relayers at the rate set by each relayer, in the trading token.
In the backend, at the same time, the relayer would pay a network fee to masternodes in TOMO whenever an order is matched or cancelled (all the relayers would have to deposit an amount of TOMO before launch in order to pay the network fee)

This mechanism allows users to trade without holding the native TOMO, which is simply a better user experience.

Hope this clarifies your concern. Let us know if you have any other questions.
Cheers,
Justin

Hi Justin Yan,

Thank you for the prompt answer. I wanted to know if there is any mechanism to reward the long term tomo holders from TomoX operations and it look there is.

Hi,

TomoX is basically a platform that’s mostly designed to enable everyone to launch a DEX with minimal experience and time required.
I’m not sure if we have any “mechanism to reward long term TOMO holders”. But I’ll try to explain what you can do with TomoX and on TomoX relayers.

If users want to hold TOMO for long term and still want to trade without selling their TOMO, they can borrow USDT with their TOMO on any TomoX relayer (like TomoDEX). So they can use the borrowed USDT to trade while retaining the capital gains potential on holding TOMO.
Or you can start running your own DEX by depositing an amount of TOMO, and you can make profits from the transaction fees from all the trading/lending/borrowing orders.

Hope it helps.
Cheers

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But the lending feature is basically usable due to no meaningful liquidity and unrealistic APR (probably by bots?). This has turned into a cycle: no liquidity > no user > no liquidity > no user. Seriously has the team given any thought about that? Or maybe learn from Comp / Aave liquidity pool model instead of order book model? The DEX product is pretty much a complete failure if it stays as it is now.

Hi Kang,

You are absolutely right about that. And our team if fully aware of the current situation. Different pool models all come with different pros & cons. Right now, we do have plans to update the fee structure to encourage users to list orders. and recently we also just formed an integration partnership Autonio.Foundation to crowdsource liquidity. We hope to see an apparent increase in liquidity after this update. Or maybe we will also consider changing the lending model, but it’s not planned yet.

Best,
Justin

1 Like

Thanks for the response. With Eth fee so expensive, I think Tomo DEX certainly should have much better usage if it can be improved. Will you guys consider supporting more trading pair for the coins with the most volumes? In reality, a lot of liquidites come from trading pairs with ETH because people have a lot of ETH. Easier to attract liquidity by offering people what they want. I stopped using Tomo DEX because 1) no liquidity, 2) I have ETH to trade.