Tokenlon Review

Tokenlon is a popular decentralized exchange that allows for trading and LON-token based rewards.

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Our Rating:
4.5
5
Cryptoassets are a highly volatile unregulated investment product. No EU investor protection.

Quick summary

Focusing on high speed and accuracy, Tokenlon has gained popularity and is today one of the larger DEXs. Their fees are 0,3% per transaction, which is average for the market. If you are looking to trade cryptocurrency on a decentralized exchange, Tokenlon is a good choice.

Tokenlon Pros

  • Decentralised exchange: users are always in control of their assets
  • Fast transactions, usually cleared within 60 seconds
  • Solid team with large active community
  • High accuracy (low slippage)
  • 99% Transaction Success Rate
  • RFQ mechanism: Best quotes at all times

Tokenlon Cons

  • Can't trade using fiat currencies
  • High ETH gas fees make LON liquidity mining less attractive

What is tokenlon?

Tokenlon is a decentralized exchange (DEX) and payment settlement system that is built on the Ethereum blockchain using the 0x protocol. The exchange was previously built into imToken, which is a self-custodial wallet, and could only be used through the imToken wallet application. Since 2020, Tokenlon is also a stand alone web based DEX, compatible with other wallets such as Metamask and Wallet Connect.

The exchange was created in order to facilitate fast and secure transactions with high accuracy (low slippage). As Tokenlon is a decentralized exchange, they are not holding your assets and you cannot deposit or withdraw funds from them. Instead, you are trading directly from your own wallet.

How does the trading work?

Tokenlon’s payment settlement protocol is a smart contract based on atomicity (also called atomic settlement), meaning that every transaction needs to meet the agreed prerequisites for it to succeed. Since version 5.0, Tokenlon has been using the Request For Quote (RFQ) quotation model to link to other AMM DEXs, such as Uniswap, Curve and Sushiswap, adding massive liquidity. RFQ is a token trading mechanism that allows users to place token orders and then wait for the best price quotes from suppliers, meaning that bids are matched with other buyers’ asks by finding an optimal match using liquidity providers.

Besides linking AMM pool, Tokenlon receive quotes from professional market-makers who partner with them. 

Tokenlon Fees

Tokenlon has a fixed fee structure: users (both makers and takers) pay a 0.3 % flat fee for every transaction completed on the platform.

Slippage

When the RFQ model is used, users may experience slippage when their transactions are processed. Slippage is the difference between the transaction quotation and the actual agreement that is logged on the chain.  Users can set their slippage tolerance (between 1-3 %) for every transaction.

Tokenlon Wallets

Tokenlon was originally developed as the native DEX for the imToken wallet, which is hugely popular, particularly in Singapore. Today, Tokenlon also works on other wallets such as Metamask and Wallet Connect.

The decentralized exchange does not hold user funds (meaning no withdrawals or deposits) and all transactions are executed via the Tokenlon smart contract from the users’ own wallets . This means that no one can access or control a trader’s fund but themselves.

LON token

LON is Tokenlon’s utility token. It was created in order to provide a better user experience, to incentivize market makers and for governance purposes. The token can be used to receive discounts on trading fees, vote on governance proposals and earn rewards via staking. LON is an ERC-20 token that is minted through trade mining .

LON Mining

tokenlon lon

Transaction fees accumulated on Tokenlon are used to buyback LON from the open market. 40% of the LON bought back is distributed to the LON treasury and 60% is distributed as staking rewards to LON stakers.

In addition, for each LON bought back, one LON is minted and distributed to the trade mining reward pool. The trade mining reward pool allocation is as follows

  • Referrers (5%)
  • Relayers (25%)
  • Professional Market Makers (25%)
  • Traders (45%)

LON Staking

The tokenlon staking program allows users who stake their LON token to receive LON as rewards. APY for staking was at 69% at it’s highest.  

Reputation and reviews

Tokenlon has generally received favourable reviews and has a good online reputation. It also has an active discord with several thousand registered members.

Tokenlon Trading view

Tokenlon’s web interface is easy to use and understand, and looks like most other DEXs.

tokenlon trading view

Conclusion

Tokenlon is a robust DEX with a solid team that is trusted by a large number of users, particularly in Asia. Focusing on high speed and accuracy, Tokenlon has gained popularity and is today one of the larger DEXs. They have an active discord with several thousand registered members and the members of the team speak both English and Chinese. Their fees are 0,3% per transaction, which is average for the market. If you are looking to trade cryptocurrency on a decentralized exchange, Tokenlon is a good choice.

FAQ

When was Tokenlon started?

Tokenlon started in 2017, then as the native DEX for the wallet application imToken. Back then, the creators were called ConsenLabs.

Which coins are supported on Tokenlon?

Tokenlon supports a large amount of coins, including:

1INCH, AAVE, AMP, AMPL, ANY, AXS, BAT, BUSD, COMP, CREAM, CRV, DAI, DAO,DPI, DYDX, ENJ, ERN, FLOAT, FTM, GRT, HT, HUSD, KNC, LINK, LON, LPT, LRC, MANA, MASK, MATIC, MKR, MLN, OGN, OGN, OMG, POLS, PUND, PUNDIX, QNT, RAI, REN, SUSHI, TUSD, UMA, UNI, USDC, USDP, USDT, WBTC, YFI, YGG, ZKS, ZRX, imBTC

Visit Tokenlon’s website for an updated list.

How secure is Tokenlon?

Tokenlon is a robust DEX with a solid team, that is trusted by a large number of users, particularly in Asia. Since users are not storing any funds on Tokenlon, one common attack vector, that of the exchange itself, is eliminated.

Which languages does Tokenlon support?

Tokenlon is available in English and Chinese.

Tokenlon Related News

Our Rating:
4.5
5
Cryptoassets are a highly volatile unregulated investment product. No EU investor protection.