Mahe, Seychelles-TomoFinance, a platform for issuing Tomochain’s decentralized Stablecoin, TAI, is scheduled to be released on April 26.
TAI is a TRC-21 token that functions as a Stablecoin and worth equal to $1. Users can generate TAI by depositing their collateral assets (TOMO) with TomoFinance.
TomoChain, used by TomoFinance, is a blockchain that uses Proof-of-Stake Voting consensus. It features 2000 TPS, a 2-second block time, and almost zero fees while being EVM-compliant to solve the issues of Ethereum.
Using TomoChain’s native token (TOMO) as collateral to issue TAI has the advantage of providing stable operations without having to sell the TOMO.
How do users deposit TOMO and issue a TAI?
To issue TAI, users need to create a CDP (Collateralized Debt Position) and deposit TOMO as collateral.
CDP is a smart contract that runs on the TomoChain blockchain and is the core of issuing TAI.
There are two points to note
- Deposit at least 200 TOMO to TomoFinance.
- Users need to deposit at least 1.3 times as much TOMO as the amount of TAI they wish to borrow.
・Click “OPEN CDP” from the home page and enter the amount of TOMO one wishes to deposit/TAI one wants to generate.
Please make sure that no liquidation will occur.
・Click on “COLLATERALIZE & GENERATE TAI” to proceed.
・Click “FINALIZE AND CREATE CDP” and click “Confirm” on the wallet.
・Click “OK,” and the CDP management page will appear.
How do users repay their borrowed TAI and receive TOMO?
One can repay any part of the TAI he or she borrowed.
・Click “PAYBACK” on the CDP management page to start repayment.
・Users will be able to repay the amount of TAI they have borrowed.
The TAI users pay back includes interest, 50% of which will be returned to users in the form of TomoFinance’s TFI governance token. This TFI token will be available in the future for participation in governance and for earning staking rewards.
・To withdraw TOMO from CDP, click “REQUEST WITHDRAWL” on the CDP Management screen.
・Enter the amount of TOMO users wish to withdraw, and click “REQUEST. After 48 hours, users will be able to withdraw their TOMO.
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Bengaluru Bytes journalist was involved in the writing and production of this article.