Tokenlon Decentralized Exchange Review

Tokenlon is a decentralized exchange that works on the blockchain network. It includes a payment settlement protocol and leverages features like robustness, anti-censorship, and has a trustless and permissionless setup. It was launched in 2017 with the objective of providing an in-wallet type of DEX. The platform aimed to provide an infrastructure offering real-time payment and settlement between different currencies and networks. We could not find info on the location, developer team details, etc.

Tokenlon overview

The main features that the vendor focuses on for the decentralized exchange are:

• It supports RFQ and automated money maker dual-mode quotation which helps users gain a competitive exchange price.
• The token exchange is done within the wallet avoiding the need for depositing and withdrawing them.
• The platform supports transaction lippage adjustment and ensures safe and easy transactions.
• Setting received address, transfer and exchange can be done in a single transaction.
• The service has a higher success rate than other similar DEX platforms.
• LON is the native token of the DEX.
• The service supports several major tokens including ETH, WBTC, UNI, CRV, SUSHI, LON, 1INCH, LRC, HT, KNC, YFI, ZRX, BNT, BAT, LINK, AAVE, MKR, COMP, DPI, MANA, ENJ, etc.
• The imToken, MetaMask, WalletConnect, Unstoppable Domain, and Coinbase Wallet are the wallets the platform supports.

How does Tokenlon work?

The DEX allows for all the following:

1. LON staking allows holders of the token to receive rewards based on the number of LON they stake. The reward is from the LON buyback done on the open market and is decided by calculating the buyback LON and the staking reward factor. For users participating in the staking, xLON tokens are provided which helps to capture the rewards. 

2. LON token holders can trade on the DEX and generate a net contribution, refer a friend to use the platform using the referral code, and thereby generate a net contribution, and provide liquidity to support the protocol. The holders can match orders for users of the protocol.

3. Liquidity forms one layer of the three-layered structure of the platform. The different liquidity sources include RFQ, OrderBook, AMM, and Money Market. The use of smart contracts helps aggregate different sources resulting in the best rates.

What can you buy on Tokenlon?

The DEX works on Blockchain technology. You can purchase the LON token using the different stable coins supported by the service like:

• ETH
• WBTC
• SUSHI
• LON
• SUSHI
• LRC  and more

Is Tokenlon safe?

Security measures used by the company include a smart contract design for atomicity of transaction settlement wherein the conditions for the transactions are satisfied for completing settlement or if the transaction fails, your assets are kept in the wallet. Other measures include contact authorization control, minimizing trusts, and a third-party security audit.

Tokenlon fees, compatible wallets, and transactions

The trade fee and the network gas fee are the two factors that decide the fees charged. The trade fee is 0.04% when the trading is done between stable coins and 0.3% for other pairs. 

Further, the fee is adjusted dynamically based on the volume you have accumulated in the past 30 days and your LON balance.

The network gas fee is based on the existing Ethereum network situation. The DEX adjusts the network gas fee to enable a successful transaction.

What are the ways to trade on Tokenlon?

The different ways to trade on the exchanges include:

• You can participate in staking to enjoy a discounted fee and governance right if you hold LON.
• Buy or sell the tokens listed on the exchange using the support wallets like imToken, WalletConnect, etc.
• You can use LON for trading, and exchange ETH to other tokens without authorization. But authorization is required if you use ERC 20 tokens.

The main trading mechanism is as follows:

1. You get the best-price quotations from market makers.
2. You can choose the token you want to trade via the wallet of your choice. 
3. The order is sent to the Ox protocol smart contract.
4. In just a couple of ETH blocks, you get new tokens in your wallet.

Customer support

For support, a help center, tutorial, an email address, and links to the social media profile of the company on Twitter, Discord, Medium, and Weibo are present.

Should you trade with Tokenlon?