Luaswap Decentralized Exchange Review

Luaswap Decentralized Exchange

Luaswap is a DEX protocol inspired by other Automated Market Maker protocols like SushiSwap and Uniswap. The aim of the platform is to support the newer, emerging tokens rather than competing for liquidity with the major token pools. It completed the liquidity migration from Uniswap on October 29, 2020.

Luaswap overview

Here are the main features of this DEX:

With this platform, you get lightning-fast trades and very low gas fees. Some of the crypto coins supported by the system include ETH, FRONT, FTT, KAI, KAT, LUA, OM, and RAMP.

The native token of this platform is known as LUA. By holding this token, you are eligible to take part in governance decisions. 

You can bridge any ERC-20 token into the TomoChain ecosystem and seamlessly integrate with this platform. To conduct trades, you must hold enough coins in your wallet.

Compared to other exchanges, this one only supports a handful of wallets. Some of them include Coinbase, WalletConnect, and Metamask.

How does Luaswap work?

This platform lets you do the following things:

  1. Swap tokens

You can easily swap one token for another using the Swap interface. It is possible to adjust various parameters like slippage tolerance and transaction deadline.

  1. Add liquidity

After connecting your wallet, you can add liquidity to the various pools available on the platform. You must choose 2 tokens from the menu or paste the address of the smart contract. This way, you can earn a certain amount of LUA LP V1 tokens. You can withdraw liquidity at your convenience. 

  1. Farm LUA rewards

Once you have LP tokens at your disposal, you can stake them in different fields. By doing this, you can earn LUA rewards. 

  1. Stake LUA

By staking LUA in the LuaSafe staking pool, you can earn a steady passive income. The income is generated from a portion of the trading fees. The collected fees are converted to LUA and distributed proportionately across holders. If you wish to exit the staking pool, you need to pay the 0.5% exit fee.

  1. Create and vote on proposals

Those who hold LUA or xLUA tokens have the right to create and vote on proposals. Your voting power depends on your unlocked LUA balance. 

What can you buy on Luaswap?

This platform is built on the TomoChain blockchain. The network is powered by the proof of stake voting consensus. The most popular tokens on this DEX include ETH, LUA, USDC, USDT, UNI, WBTC, SUSHI, and WETH. 

Is Luaswap safe?

The smart contracts of this DEX were audited by The Arcadia Group. Only low and medium severity issues were found during the audit and they were all resolved. 

User reviews

At this moment, there are no customer reviews for this exchange on trusted third-party websites. It is a newly-launched platform, and evidently, not many people are currently using it for trading in crypto.

Luaswap fees, compatible wallets, and transactions

The swap fee for this exchange is 0.4%, which is higher than other exchanges. From this, 0.05% goes to the LuaSafe stakers, while the rest goes to the liquidity providers. There is a 0.1% withdrawal fee for removing liquidity and a flat 0.5% fee for LuaSafe withdrawals. The wallets compatible with this DEX are WalletConnect, Metamask, and Coinbase wallet.

What are the ways to trade on Luaswap?

To conduct swaps, you need to navigate to the Swap tab on the platform. Here, you can select the From and To tokens, set the slippage tolerance, and the transaction deadline. By toggling expert mode, you can conduct high slippage trades after bypassing confirmation modals.

Customer support

Technical support is available on the official Telegram group. There are only 128 members on this channel. The website does not have a live chat feature and there is no official email address or a phone number through which you can contact the support team.

Should you trade with Luaswap?