Komodo completes first peer to peer, AMM-free fundraise in the industry

By: Daniela Kirova
Daniela Kirova
Daniela was born in Bulgaria, grew up in Chicago, and then moved to Michigan to attend the University of… read more.
on Sep 16, 2021
  • Achievement will further development of stronger mechanisms to upgrade DeFi infrastructure security
  • Uranium Finance and Meerkat, both AMMs, lost $50 million and $31 million
  • Thanks to the new mechanism, almost $1,000,000 was invested in Tokel

Komodo completed the first peer-to-peer, AMM-free, cross-chain fundraise with tokenization infrastructure provider Tokel. Komodo is behind AtomicDEX, a product that makes it possible to exchange and transfer assets between wallets safely, instantly, and without requiring AMMs, Invezz learned from a press release. This achievement will further the development of stronger mechanisms that will upgrade DeFi infrastructure security.

A solution to AMM hacks

The fundraise used a unique approach that allows access to tokens without using automated market makers (AMM). This happens against the backdrop of continuing DeFi fundraise hacks. Uranium Finance and Meerkat, both AMMs, lost $50 million and $31 million in attacks respectively. Komodo’s fundraise used a peer-to-peer, decentralized order book. The approach also helps lower fees because this liquidity model makes sure that during an IDO, an investor can lock in a concrete exchange rate without having to worry about slippage.

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Komodo CTO Kadan Stadelmann commented:

“Komodo’s mission is to connect all the blockchains together. In doing this we want to provide a secure platform that enables safe and instant swapping. We’re excited to have Tokel become the newest coin listed on AtomicDEX and the first to use AtomicDEX to launch an IDO. This marks an important milestone for the expansion of our technology as we now offer a seamless plug-and-play option for fair launch coins. I am confident that many other projects will follow in Tokel’s footsteps.”

According to Tokel Lead Developer Nutella Licka:

“Komodo offers a perfect solution, both for launching an independent blockchain with its own native coin and for integrating into a cross-protocol DEX. The on-chain trading fee for the KMD/TKL trading pair is less than a fraction of a penny, which is a considerable advantage over running an IDO on ERC-20 DEXs. Users who participate in the IDO don’t have to interact with a smart contract when trading, so this fundraising mechanism is much more secure than what AMM-based DEXs offer. Another crucial benefit is that AtomicDEX provides a secure, built-in non-custodial wallet for users to store their TKL coins.”

Thanks to the new mechanism, almost $1,000,000 was invested in Tokel, a project with a specific focus on creating NFT infrastructure for the Komodo ecosystem.  

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