Tonic DEX

Because of the current development of DeFi, it has become very convenient to swap tokens on AMM DEX exchanges. However, it is still a difficult problem that users who want to place a pending order to catch the bottom, sell the top and use the token in the wallet. Therefore, understanding the outstanding problem, the Tonic DEX project was born to solve this problem. Let’s read the report below to learn more about Tonic DEX.

Tonic DEX

What is Tonic DEX?

Tonic DEX is an orderbook decentralized exchange platform built on NEAR with the aim of making transactions of any asset on Near and Aurora faster and more seamless. Therefore, it makes it easy to buy and sell any Near cryptocurrency with low fees, deep liquidity, and accurate pricing.

Tonic DEX is built in order that DeFi applications on the NEAR can connect and use it most effectively. It also promotes the adoption of DeFi’s ecosystem on NEAR. Furthermore, the Tonic protocol uses NEAR with Nightshade sharding so as to extremely fast transaction speeds and low fees.

Unlike most other decentralized exchanges that determine prices by AMM algorithm, the Tonic protocol matches prices according to orderbook technology that is used in traditional centralized exchanges. Thereby, it brings a sense of familiarity and convenience for users.

How does the Orderbook Tonic DEX work?

Self-trade prevention

The operation of Tonic DEX includes placing and canceling buy and sell orders at the discretion of the user. When connecting to the exchange, users need to transfer the assets to the exchange’s wallet for trading. These are the smart contracts of TONIC Coin. However, as a decentralized exchange, it does not allow self-trading. To avoid this, when traders place an order, they will be able to choose one of the following options to not trade with themselves:

  • Reduce volume or cancel: If an order is in high volume, it will be subtracted from exactly the amount of buy or sell to form an order with a smaller volume. Besides, smaller volume orders are canceled. Two buy or sell orders of equal volume will be canceled both.
  • Delete the oldest, newest, or both commands

Auction

New trade requests will match pending orders in the best-priced. That is, the taker will receive the current best price in the electronic market.

There will be no waiting state for trading orders. When having a new trade request, the order matching system will run and calculate the execution immediately. If users choose limit orders, the values that are not matched will be placed in the order book to wait for the transaction. If a market order is chosen, the order will be executed immediately and the unfilled quantity will be refunded.

Fee structure

Tonic charges fees for taker orders and offers a percentage of taker fees to makers as an incentive. The current fee and rebate rates are as follows:

  • Stable pairs (e.g. USN/USDC)
Fee tier Taker fee (bps) Maker rebate (bps)
Base 4 2
  • All others (e.g. NEAR/USDC)
Fee tier Taker fee (bps) Maker rebate (bps)
Base 10 5

What are the features of Tonic DEX?

Some salient features of the Tonic DEX include:

  • Low Fees: NEAR’s ecosystem transaction fees are 100 times lower than that of Ethereum. Tonic DEX allows users to trade directly on the blockchain at incredibly low fees.
  • Lightning Fast: Transactions on the platform will be confirmed within a second thanks to the fast block generation and processing speed of the Near blockchain.
  • Open Platform: Everyone can program different trading products on Tonic with a development kit and Coin SDK that are easy to use for the project.
  • Secure and Reliable: All transactions are done on the Near blockchain so that they are guaranteed to be safe, reliable, and extremely fast.
  • Community Focus: All transactions will be done peer-to-peer, meaning no third-party intermediaries.

What is the Tonic DEX token?

TONIC Token key metrics

Token Name: Tonic DEX Coin

Ticker: TONIC

Blockchain: Updating…

Token Standard: Updating…

Contract: Updating…

Total Supply: Updating…

TONIC Token Use Case

There is currently no specific information about the Tonic project coin. However, the project’s TONIC Coin is used to:

  • Reduce Trader’s transaction fees by different levels, there are currently 6 levels
  • Increase the percentage of fees received by other platforms built on Tonic by 6 different levels.

When released, one function of the Tonic token (TONIC) will be to decrease taker fees and increase maker rebates. The proposed fee and rebate rates are as follows.

Fee tier Taker fee (bps) Maker rebate (bps)
Base 20 2
Tonic1 19 3
Tonic2 18 4
Tonic3 17 5
Tonic4 16 6
Tonic5 15 7

Roadmap

Plans for future deployment and development of the Tonic DEX have not yet been specifically announced. However, now the Tonic protocol has launched a testnet version so that participators can experience and get acquainted with this DEX Orderbook.

Team, Partners, and Investors

Team

The project is developed by a team of former software engineers of leading technology corporations (FAANG) with extensive experience in developing systems that are high-performance, security, and financial applications.

Partners

The Tonic protocol signed to market makers as partners to help create liquidity for the platform such as GSR, Wintermute, Flow Traders, Cumberland, and Jane Street.

Investors

On April 26, 2022, the Tonic DEX project announced that it had raised $5 million in a seed round. The main purpose of using this capital is extension its team as well as to provide a scalable platform for trading and building DeFi applications.

The funding round was led by Electric Capital and Move. In addition, Dao5, Framework Ventures, NetZero Capital, Daedalus, and Bixin Ventures also participated in the investment in this round.

Tonic

Conclusion

Tonic DEX is a promising project on the NEAR. The aim of the project is the foundation for other DeFi applications and is suitable for many objects to use. At Tonic DEX, traders can use a trading platform that is extremely fast, secure and has very low fees. Also, the market maker will profit by providing liquidity. In addition, developers of DeFi applications can use the tools of the Tonic platform to build applications on the NEAR. In conclusion, according to the information we share above, thanks to the outstanding features, the Tonic DEX promises to bring strong benefits in the future. Surely, this will be a potential platform for investors to wait for in the near future.

Tonic DEX’s Community

Twitter | Website | Discord  | Telegram

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