LUA token is a native token of LuaSwap protocol to incentivize them to stay with the LuaSwap. Holding the LUA token means holding a share in the governance of the protocol. All LUA token holders can decide the subsequent chains to implement LuaSwap on, how much LUA to distribute to LPs in the new chain, which new token projects LuaSwap should support, etc. LUA hard-cap is at 500 million tokens.
You can store LUA in an Ethereum address. Make sure you own a private key/seeding phrase and can access the Ethereum address. You can use TomoWallet app and Metamask.
On TomoWallet app, import your address you received LUA > switch the network to Ethereum > you will see LUA balance.
The first 8 weeks will have HYPER-INFLATION
Rewards: 128X of base reward for 2 weeks, then halved every week until Week 8.
25% of earned LUA is unlocked immediately. 75% is locked for 16 weeks, then unlocked linearly every block over 1 year, starting Week 17.
At the moment, farming on luaswap.org is the only way you can get LUA. LUA has been listed on: FTX, TomoDEX, Hotbit and Coinone,.... We will update you on telegram and twitter.
5. What is LuaSwap
An additional 10% of all LUA distributions will be set aside for the LUA treasury. The LUA treasury will be spent on auditing, development, rewarding contributors, and supporting new token projects by providing liquidity to LUA/new token pool. This 10% of all LUA rewards generated within the first 8 weeks are also locked based on the unlock plan.
To receive the LUA reward, follow the steps below:
Add Liquidity to our Farming set on LuaSwap to receive LUA V1 LP token. Guide HERE
Go to LuaSwap.org
Stake your LP token into the reward contract and start receiving the LUA reward
LuaSwap is the new swap protocol inspired by the previous AMM-based swap protocols such as Uniswap and SushiSwap. However, LuaSwap’s redesigned tokeneonomics and operation strategy addresses the short-comings of other swap systems. At the core, LuaSwap delivers a community-governed, multichain protocol via the LUA token. The focus is to support smaller pools of emerging tokens instead of fighting for liquidity within the top token pools.
LuaSwap completed the migration of liquidity from Uniswap on October 29th, 2020. This means that all liquidity previously deposited on Uniswap has now been moved to LuaSwap V1.0.
All Uniswap LP tokens (UNI-V2 LP token) have been converted to LuaSwap LP tokens (LUA-V1 LP token), representing the exact same share of liquidity in the LuaSwap liquidity pools.
No action was required for Liquidity Providers (LP) who staked their Uniswap LP tokens on LuaSwap before the migration. LuaSwap LPs will only need to re-approve the LP tokens contract in LuaSwap before unstaking or staking additional LP tokens on LuaSwap.
The swap fee is set at 0.4%, of which 0.05% goes to LuaSafe stakers (more on LuaSafe below), and the remaining 0.35% goes to LPs.
LuaSafe is LuaSwap staking pool, where you can save (stake) your LUA to earn passive income. LuaSafe income is generated through a portion of fees collected and distributed in the following way:
0.05% from swap fees across all pairs
0.1% from withdrawal fees for LPs withdrawing liquidity from liquidity pools.
0.5% from users withdrawing their LUA staked in LuaSafe
As fees are collected they are converted to LUA and distributed proportionally across holders in the xLUA pool. So when you withdraw your xLUA back into LUA it will be worth more LUA than when you put in. You can stake/unstake in LuaSafe any time. No locking period. But kindly note that there is 0.5% exit fee for stakers.
“CONVERT” button on LuaSafe will trigger reward distribution for the selected pair by calling 2 functions directly to the smart contract LuaMaker, which will perform the following:
Burn collected LP tokens from withdrawal fees and swap fees
Buy LUA at market price and send it into the LuaSafe contract.
The core team will trigger distribution every Monday, generally around noon Singapore time (GMT+8) or earlier if the pair’s collected fee reaches a certain significant amount (equivalent to at least 3,000 LUA after converted). Users do not need to pay any gas fee for the distribution unless they choose to manually trigger the distribution process themselves.
Anyone can trigger distribution at any time by selecting the “CONVERT” buttons. Users need to pay the gas fee for the distribution if they choose to do it themselves.