TomoChain CheatSheet #6 - Farming on LuaSwap (Pt.1)

2020 summer belongs to DeFi. We’ve witnessed the release and expansion of hundreds of fresh AMM projects in the crypto space, which together have created a dominant trend in the DeFi world.

Embracing a strong belief in the future of decentralized finance, LuaSwap made its first appearance in September 2020 with the focus on supporting smaller pools of emerging tokens without seed investments, founder’s fees, or pre-minings. Being built on both the Ethereum and TomoChain networks, LuaSwap fully unleashes a functional AMM with trustworthy cross-chain trading, all at the speed and price that retail investors are really looking for right now.

This article will provide a complete overview of LuaSwap for beginners using the most fundamental information.

What is LuaSwap?

LuaSwap is TomoChain’s swap protocol inspired by the previous AMM-based swap protocols such as Uniswap and SushiSwap. However, LuaSwap’s redesigned tokeneonomics and operation strategy address the short-comings of other swap systems. A prime example is that the launch of LuaSwap on TomoChain (explained more later) can alleviate few downsides of gas fee inefficiency & network congestion of other projects based on Ethereum networks.

At the core, LuaSwap delivers a community-governed, multichain protocol via its native token, $LUA. The main target is to push forward smaller pools of emerging tokens instead of fighting for liquidity within the top token pools.

LuaSwap enables users to perform fundamental features such as swapping tokens, providing liquidity; creating new token pools; staking in LP tokens to earn passive income, staking in LuaSafe to earn more LUA; participating in governance voting via LUA, etc,…

All liquidity previously deposited on Uniswap has now been moved to LuaSwap V1.0 after the migration of liquidity from Uniswap on October 29th, 2020.

Introduction of LUA token

LUA token is a native token of LuaSwap protocol to incentivize liquidity providers to stay with LuaSwap for a longer period of time. LUA token represents 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.

Users can get LUA by farming on LuaSwap, staking in LuaSafe or trading on exchanges that are listing LUA. TomoDEX is an ideal decentralized exchange for users to purchase LUA TRC-21 while other exchanges including FTX, Coinone, Hotbit, CoinPark,…support LUA ERC-20.

Lua token is an ERC-20 token, therefore it can be stored in an Ethereum address. You can use TomoWallet app and Metamask. On the TomoWallet app, import your address you received LUA then switch the network to Ethereum, after that, you will see your LUA balance. We also have wrapped LUA TRC21 on TomoChain, so you can add LUA to your TomoWallet anytime you want. You just need to make sure that you are on the right network.

LuaSwap’s implementation on TomoChain

LuaSwap now operates independently on both the TomoChain & Ethereum Blockchains, taking advantage of each chain’s capabilities. The TomoChain version of LuaSwap promises near-zero gas fees and blazing fast transactions with 2-sec block times and more than 2,000 transactions per second, becoming an alternative to the challenges being faced on Ethereum AMMs.

Any ERC20 token can be brought into the TomoChain ecosystem and integrated with LuaSwap seamlessly via TomoBridge, enhancing cross-chain interoperability between TomoChain and Ethereum. Therefore, LuaSwap’s implementation on TomoChain allows not only TOMO and any TomoChain-based token, but also any Ethereum-based token to provide liquidity, swap, and yield farm almost instantly with near-zero gas fee without network disruption.

Please make sure that you switch to the right network to use LuaSwap on the platform you want.

You can read more about LuaSwap here