Road To Testnet at TomoFinance
TomoFinance’s testnet will be released soon, which allows users to generate TAI by leveraging collateral assets.
Tomochain uses a consensus algorithm called POSV (Proof-of-Stake Voting), which has 1/18,000th of the transaction fees and roughly 80–100x the speed compared to Ethereum. Tomochain is applying to various dApps such as wallets and DEX.
What is Collateralized Debt Positions (CDP), and how does it generate TAI?
The TAI Stablecoin is a decentralized, unbiased, collateral-backed cryptocurrency soft-pegged to the US Dollar.
TomoFinance platform allows users to generate TAI by leveraging TOMO as collateral through unique smart contracts known as Collateralized Debt Position (CDP), which refers to how MakerDAO issues DAI.
By creating a CDP, you will issue a TAI of 66% of the TOMO deposited as collateral. At the same time, a governance token called TFI will be distributed.
The user deposits a certain number of TOMOs and creates a CDP. Currently, the minimum amount of deposit is set at 200 TOMO, and 70% of TOMOs are voted to the masternode. Because of this mechanism, we can also receive a reward from the masternode every 30 minutes.
About generating TAI
Once a user’s wallet is verified, TAI will be generated in exchange for locking TOMO. As long as the collateral guarantee ratio does not fall below 110%, each user can manage their assets independently.
Once you generate TAI, you will be obligated to repay the TAI and interest in withdrawing the collateral locked in the CDP. To collect the TOMO deposited as collateral, you must first make a withdrawal request to CDP, and it will take approximately 48 hours to cancel your vote for the masternode and withdraw the TOMO from CDP.