Build and manage your own exchange: TomoChain vs Birake
By Inkarias - 2020-08-05
With the proliferation of the number of cryptocurrencies available on the market in recent years, the barriers to entry to be listed on a reputable exchange have become difficult to overcome. It therefore became essential to come up with solutions that were less expensive and easier to implement for the general public wishing to invest in the world of cryptocurrencies. The launch or use of a decentralized exchange makes it possible to target a certain type of investor wishing to avoid certain disadvantages linked to the more common, so-called centralized, exchanges.
For more details, centralized exchanges or CEX are run by an organization that oversees its day-to-day operations like maintenance, security, and growth over time. The business model of a centralized exchange is similar to that of a traditional securities exchange that charges a trading fee in exchange for access to the marketplace. In the same way, if a centralized exchange offers a fiat gateway to digital currency trades, there is more chances that it is regulated and thus required to conform to their country’s know your customer (KYC) and anti-money laundering (AML) laws and policies ( that might differ from the country of exercise).
In a decentralized exchange, things are way easier for investors. Although trades are decentralized, DEXs still have a centralized authority that oversees its operation. A team of developers is needed to write the complex dApps that are required to facilitate decentralized trades. DEXs still charge fees for using the exchange, although they are often less than on CEX. In this article, we will compare two well-known solutions on the market and resulting from two trusted projects, Tomo and Birake. These two entities offer investors the possibility of creating their own decentralized exchange in a simple way without very advanced technical knowledge at minimal costs.
87 831 361 BIR
71 199 450 TOMO
91 851 618 BIR
100 000 000 TOMO
$40 636 633
Volume / 24h
$5 354 151
Masternode Collateral & Reward
10000 - 50000 BIR
40% MN Owner
10% MN foundation
*Data extracted from coinmarketcap.com and projects official websites
Overview of both exchange solutions
The Birake project package offers a DEX and an intuitive design for users and those wishing to launch their own decentralized exchange. Exchanges built under the Birake brand are ready to go live from day one for anyone who will pay a small monthly fee.
All the exchanges running on Birake network have the orders books openly shared between the entire network, bringing more accessibility to trade more assets and to bring more users using the services.
The services for creating an exchange are divided into four available packs, depending on the trading fees split chosen knowing that the network fees are not included in Birake crypto white label exchange solution. The price range varies from 0,25 BTC to 3 BTC for a maximum of 70% trading fees split for the customer.
Advantages of Birake’s solution
- A high-performance trade engine and infrastructure for highly efficient matching of trades across the entire Birake network.
- A shared order book as stated above, bringing a big network of investors and traders together
- Accessible to everyone with low-technical requirements
- A high level of security with secure wallets and protocol
- A wide diversity of assets
How to setup a DEX with BirakeExchange publicly available: https://trade.birake.com/
First of all, before launching the process of requesting the creation of a new DEX with the Birake entity, it is important to know and understand that the KYC procedure will be necessary for at least one person on the team making the request. Once the associated policies and rules are taken into account, the creation process is carried out in a very simple way directly via the official project website at https://birake.com/.
- On the main page, choose one of the proposed packages and press "Order now". The link redirects directly to the registration form (image below).
The form requires some basic information such as name, organization type (either for business or personal purposes), a valid email to be contacted, some information about communication channels such as social medias, and the chosen pricing plan.
NB: We have been trying to reach the Birake team on their official social channels to find more details about the whole exchange creation process. However, after two weeks, we have not received any feedback or information from them.
Similar to the Birake project shown above, TomoChain also offers a decentralized exchange solution that is easy and quick to set up. The system is based on several solutions: TomoX, a secure and efficient permissionless decentralized exchange (DEX) protocol that offers the speed and experience of centralized exchanges coupled with the security of decentralization where users are always in direct custody of their funds and TomoRelayer, an administrative portal to register and manage decentralized exchanges, namely Relayers on TomoX directly. This TomoX protocol also offers a great value-added with liquidity amongst entire network with one giant tradable order book shared across every DEX on TomoX.
Another major feature of TomoX is the ability to build a lending platform. Powered by TomoX, lending on TomoDEX involves automatically matching borrowers and lenders. This automatic linking is usually based on asset, term, and interest rate preference of both the lender and borrower. Safety on TomoDEX is a very important feature, alongside other top-notch loan management features like top-up, auto-repay, and auto excess recall.
Advantages of Tomo’s Relayers and TomoX
- A high-performance trade engine and infrastructure for trading and lending safely in the Tomo network
- Easy to Select and List TRC21 Tokens: Selectively enable trading of any TomoChain TRC21 tokens that already applied to TomoX.
- A professional dashboard with various analytics that tracks key performance metrics including volume, users, and transaction count ( amongst other data collected on performances)
How to set up a DEX with TomoChain
- The first step in creating a DEX is to link an ERC20 compatible wallet in order to start the creation process. As I presented the screenshot above, it is possible to use several known solutions such as Metamask, Ledger or to make a direct connection via a private key or a mnemonic key. A 25,000 TOMO deposit is required to register a relayer, which may be withdrawn later.
- Locked Funds: 20,000 TOMO will be locked and only be available for withdrawal 30 days after the relayer owner decides to resign.
- Trading Fee Fund: 5,000 TOMO will be used for paying network fees and will be deducted from as fees are sent to Masternodes for handling trades and order processing. A Relayer owner can resign the relayer position at any time. If the Trading Fee Fund is not empty, the relayer owner can withdraw the remaining funds along with the locked funds 4 weeks after resigning.
Finally, once the basic configuration and deposit have been made, it is mandatory to set up the associated trading fees and trading pairs. Traders’ Trading fee is adjustable charged by the paired token (BTC/USDT and more) at the time that the order is matched and sent to Relayer Owner Address. A wide diversity of assets and trading pairs can be added on the DEX, the complete list of supported assets can be found on the official TomoChain website.
Once all the configuration has been made, a last window will require to confirm the settings (including spot/lending settings) in order to validate the creation of the DEX. Future DEX owner must carefully review the pop-up box which includes all details and settings of the Relayer before publishing the new decentralized exchange. An explicative video is also available:[embed][/embed]
NB: We have been trying to reach the Tomo team on their official social channels for more information on how DEX management works. However, we haven’t been able to receive more details or answers regarding the solution. The basic guideline and tutorial offered by the team are still sufficient to build and manage the DEX easily.
Comparatif des deux solutions
Although the two solutions offer similar basic principles, it is rather important to clarify that the two projects do not target the same types of investors or market sectors at all. Tomo currently has a market cap of around 100 times that of Birake and therefore enjoys a certain notoriety and a much larger investor base with major accounts and reputable projects. In addition, the Lending solution offered by the TomoX protocol also offers new horizons and new paths towards the new gold of 2020, decentralized finance or DeFi, allowing much greater interoperability within the cryptosphere. Conversely, Birake, despite a fully functional solution, targets much more projects classified as low cap in order to offer the same community of investors a wide variety of trading pairs (masternode or staking projects for example).
Official Links:TomoChain Website: https://tomochain.com/Birake Network Website : https://birake.com/