Convo with TOMO #2 - LuaSwap development

Host: Hi guys, welcome back to our channel, in the next episode of Convo with Tomo. I’m Ha, Marketing Manager of LuaSwap. As you might know, LuaSwap has been catching a lot of attention from the community. And today, I’m going to answer all of your questions about LuaSwap, and don’t forget that live questions are also open to the community during the video stream so feel free to ask me anything you want. Thank you!


Host: Before going to answer your questions, I want to walk you through an overview of LuaSwap as well as a decentralized finance scenario. Thanks to the rise of blockchain, anyone can own and transfer assets across an open network. Unlike existing financial architecture, blockchains are freely and equally available for everyone. Many centralized and decentralized platforms are designed to exchange, buy and sell digital assets. And, market making is a well-known financial market activity including creating orders on both the sale and buy-side for a particular asset, which has a primary goal is to make the asset have more liquidity, so LuaSwap is a new swap protocol inspired by many previous ones like UniSwap or SushiSwap. The idea and philosophy behind LuaSwap are that we are a multi-chain compatible & on-chain trading protocol. Right now we operate the AMM independently on TomoChain and Ethereum networks. And digital assets can be transferred via TomoBridge. I think one of the key differences of LuaSwap is that we are focused on smaller pools of emerging token projects instead of fighting for liquidity within the top token pools. On the TomoChain platform, LuaSwap allows users to purchase tokens nearly instantly, at near-zero gas fees without network congestion.

Q&A Section

Question 1: DEX liquidity is always a challenge in the early days of adoption. Any plans on how you plan on solving as more and more coins get listed on LUA?

Host: As I mentioned above, I think market making is a critical part of the financial market. LuaSwap allows anyone to join and provide liquidity for the exchange. Now we are discussing with many partners and projects to bring that token to LuaSwap as well as call for contributions from the community and supporters. TomoBridge’s new version is also expected to have the transition from other platforms conveniently. We also think about the cross-portal swap to connect liquidity from a variety of sources while getting the best conversion rate on a single interface for all transactions. This feature will help to connect liquidity from many sources. For example, LuaSwap can connect with the liquidity on TomoDEX, or maybe on the Ethereum platform we can connect with liquidity from SushiSwap or UniSwap.

Question 2: Do you have any plan to build a new version of LuaSwap on Binance Smart Chain as well as support the Binance Smart Chain network bridge with TomoChain?

Host: Binance Smart Chain is growing rapidly and now BNB is a top three tokens in terms of total market cap in the market. I think they have big potential to become a key platform for DeFi development. We will consider this possibility after completing the TomoChain version. But creating a new product on a new platform consumes a lot of resources. Meanwhile, TomoChain has many similarities with the Binance Smart Chain such as a cheap transition fee, high-speed confirmation time, and even more decentralization with 150 master nodes. So building a new version of Tomobridge that supports the transition between TomoChain and Binance Smart Chain, in my opinion, is a more reasonable way.

Question 3: Can you explain the tokenomics of LuaSwap?

Host: LuaSwap’s tokeneonomics is redesigned with a vesting schedule to not only reward early adopters but also incentivize them to stay and participate in governance for a longer-term. At the core, LuaSwap delivers a community-governed, multichain protocol via LUA token. We have no presale and 25% of tokens formed in the beginning will be released immediately, while the 75 percent remaining has a one-year vesting period starting from 21th Jan. The vesting period ensures token farmers have incentives to stay with the protocol. And you guys can stake your LUA tokens into LuaSafe to earn passive income.

Question 4: Marketing is a central element of every project so that everyone knows the potential that a project can bring is vital to achieving the goal set. What is your strategy to attract new users and investors to your project and keep them long-term?

Host: We just released LuaSafe on the TomoChain network and the next milestone is farming. Besides, I think it’s time for us to reach out to some marketing activities including promotional campaigns, trading competitions, co-marketing plans with partners, exchanges, the media, and influencers. As a business development aspect, we take a direct approach to potential projects, working with them directly to provide the best solutions as we can and try to get the support of the community as well. LuaSwap is now available on the TomoChain platform so we hope to see farming incentives on TomoChain this month with almost 0 fees. You guys can start providing liquidity on TomoChain for the next upcoming events. We also prepare for some trading competitions for new users to stake so don’t forget to join the LuaSwap telegram and follow our Twitter to keep updating the news from us.

Question 5: Do we see future trading on LuaSwap in the near future, and why should we choose to trade on LuaSwap over the others?

Host: Okay so is it very difficult to take a more complex financial position on a decentralized protocol. There are a few existing decentralized protocols that support derivative or margin trading and I can say that for the long term LuaSwap plans to develop a future swap to facilitate decentralized margin trading token where all activities take place on-chain. It will help to eliminate the need for third parties. I can say that it’s not an easy job at all but we are working with our own resources we have for product development and hopefully, we can see this new feature this year.

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