How To Use Lumenswap | Features of Lumenswap DEX!
Lumenswap is a decentralized crypto exchange that runs on the Stellar network. Here you can swap, trade coins, trade NFT, provide liquidity, purchase Lottery etcetera.
Lumenswap has so many features but in this article, I will explain only a few features. You can also watch the video below to know the steps to swap/trade on Lumenswap.
Video Tutorial
The video will only teach about swapping/trading but I have explained other useful features in this article, so continue reading…
Why Does Lumenswap Run on the Stellar Network?
The advantage of the stellar network is fast transactions and extremely cheap gas fees. Most transactions on stellar take less than five seconds and the gas fee is so cheap that you will feel like you’re doing all the transactions for free.
Lumenswap Features →
1. Lottery
The lottery is one of the best features of Lumenswap. Only a few dollars investment can win you(only if you ain’t unlucky like me😜) prizes worth 1K USD, 10K USD, 100K USD, or even higher.
The lottery model is fully transparent and decentralized. They regularly organize lottery rounds and every time they come up with a new prize.
Till now they completed 3 lottery rounds. In the first lottery round, the prize was a Tesla Model S or 100K USD. The below screenshot is from the first round lottery.
Lottery Ticket Price →
The price of a ticket was 1 LSP Token in the previous three rounds however, they can set different prices in the upcoming rounds.
The current price of 1 LSP is around 0.025 USD, which means you just need 2.5 USD to purchase 100 tickets.
More tickets increase the chance of winning but as I said earlier, only a few dollars investment can win you big prize money.
The winner of the first round had bought only 777 lotteries and he won 100K USD.
How To Purchase Lottery Tickets →
- Visit Lumenswap.io → Click on the Launch App Button → Click Launch under the Lottery option. OR You can directly type Lottery.lumenswap.io in your browser.
2. On the next page, you will see the list of all lotteries.
3. If any lottery is active, select that to see full details.
4. If the lottery is active, you will see a Buy Ticket button. Connect the wallet and click on the Buy Ticket button. You need LSP Token in your wallet to buy the tickets and XLM Token to pay the transactions fees.
List of all the wallets, currently you can use on Lumenswap.
You can read more about lotteries on the Lumenswap Medium page.
2. Reward
The use of Lumenswap's reward program is to give back to the community. As you can see in the below image, 40% of the total LSP supply is for rewards.
The LSP reward is divided into two sections, Holder Reward, and LP Reward.
Holder Reward
You need to hold at least 10,000 LSP in your personal wallet to be eligible for this reward.
LP Reward
This reward is only for LSP liquidity providers. You need to add more than 1,000 LSP to the LSP/XLM or LSP/USDC pools to be eligible for this reward.
Lumenswap will take monthly snapshots on a random day, and eligible holders or liquidity providers will be rewarded in proportion to their assets.
Note: If you will provide more than 10,000 LSP as liquidity, you will be eligible for both Holder and LP Reward.
You can connect your wallet and track your rewards in the Lumenswap Rewards section.
I can also see Trade Reward in the about screenshot but currently, I don’t have any information about Trade Reward. If I will get any information, I will add it to this article.
3. Swap/Trade
I already added a video tutorial at the start of this article so I am not going to explain it again.
But I would like to say one thing is the Spot feature of lumenswap is unique. I mean every other DEX has a swap feature but Lumenswap is one of the few DEXs where you can place a limit buy or sell orders.
4. Add Liquidity
You need to visit the My Pools section to add liquidity pairs.
Note: As I explained earlier, you will also get rewards for providing liquidity (only if you’re eligible).
You will see something like the above screenshot. Click on the New Pool button then a pop-up will appear like the below screenshot.
Select the pair you want to add and enter the amount. The value of both tokens should be the same at the time of adding liquidity. You just need to enter one field, it will automatically fill the other field.
Also, always remember about impermanent loss whenever you’re providing liquidity. Impermanent loss is a different topic, I will try to write a separate article about impermanent loss.
After that, click on the Create button and follow the on-screen instruction to add liquidity.
5. Auction
The auction allows other projects in the Stellar ecosystem to raise capital from their communities in a transparent and fair fashion.
And as an investor, you get a chance to purchase tokens at a very low cost in the pre-sale.
The below screenshot is of the first auction on the Lumenswap. Rabet is one of the wallets that you can use/connect on the Lumenswap.
Recently Rabet wallet launched its own RBT token and organized the presale for the same on the Lumenswap.
What is Base Price/Bid?
The project owner sets a minimum bid(or base price). This is the minimum amount that you need to invest to place a bid.
But there’s no limit on the maximum bid amount. If you like any project and believe that this project is the next 100X or 1000X, you can place a higher bid to increase the chance of winning the bid.
You can see the stats of the RBT Token Pre-sale. The total number of bids was 682 but only 368 bids won. This means the chance of winning bid at the base price is very low.
Apart from the above five, Lumenswap also has other features like NFT, DAO, Academy etcetera. I will try to write about other features in the future.
I hope you found this article helpful. But If you have any queries and questions, feel free to ask in the comment section below.
