Additionally, LuaSwap, the TomoChain swap protocol is a community-governed multichain protocol and it might prove to be a game-changer for emerging tokens. That’s because these tokens will not have to fight for liquidity within leading token pools. Furthermore, the Liquidity Providers will receive LUA tokens as incentives for maintaining the liquidity pool.
Audited protocol
LuaSwap is an audited swap protocol.
We are excited to announce #luaswap smart contracts are now fully audited by @TheArcadiaGroup
Read more at https://t.co/dAOGGRc4Hb@TomoChainANN #TomoChain $TOMO $LUA pic.twitter.com/y25uBF164y
— LuaSwap (@LuaSwap) September 28, 2020
According to Long Vuong, CEO TomoChain, leading audit and security firms QuantStamp and Certik have been invited to farm and audit LUA.
We invited @Quantstamp @PeckShield @Certik_io and other reputable researchers to farm and audit LUA contracts. Our farm is small, but $LUA is real and we pay in cash :))) Please reply or DM https://t.co/3JTMaCGviB @LuaSwap
— Long Vuong (@longvuong22) September 25, 2020
Re-designed tokenomics
LUA’s tokenomics is different from existing swap protocols. One who holds LUA will also hold a share in the LuaSwap governance protocol. Apart from that the rewards are not only limited to early adopters. In fact, it also incentivizes LUA holders for participating in governance for a longer period of time. Moreover, the governance rights of LUA holders are:
- Chains on which LuaSwap will be implemented in the future
- How much LUA will a new chain’s Liquidity Providers receive?
- LuaSwaps new token project support
LUA farming starts on September 28. However, users can start depositing UniSwap LP token on LuaSwap.org. Those who stake their LP tokens prior to that stand a chance to receive the maximum amount of LUA.
Prevents “Farm and Dump”
Coingecko’s recent survey revealed that most of the yield farmers are conducting farm and dump. Basically, opportunistic yield farmers farm the tokens and then immediately leave the protocol. Thus, eventually both the protocol and tokens lose their value.
Basically, TomoChain strategized LUA token distribution via yield farming in such a way that liquidity pools receive long-term support.
Initial Liquidity pools
According to the official announcement, the initial liquidity pools will be:
- TOMOE-USDC
- TOMOE-USDT
- TOMOE-ETH
- LUA-USDC
LuaSwap Roadmap
With the LUA Treasury in place, the platform will build funds to improve the protocol. The major enhancements that are expected to be seen in the future are:
- LuaSwap porting to low cost and higher-performance public chains
- AMM swap to support leveraged trading
- Reduction of impermanent losses
- Have more than one token type in a pool
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