On Friday, March 5th, LuaSwap’s Marketing Manager @hoanghalc & the founder of TomoChain @longvuong were live in Venus Queen’s Telegram channel to share insights and updated about LuaSwap. It was a great opportunity to educate a large audience about the LuaSwap, what we’ve been up to, and where we plan to go from here. Here is the recap of the entire conversation.
Venus Queen admin: Hello everyone, please welcome @hoanghalc from #LuaSwap team. He is the marketing manager looking after LuaSwap project. Welcome Ha Hoang to our community. We all are very excited about this AMA.
Ha Hoang: Thank you for inviting me today, it’s my pleasure to join the AMA with you guys.
Venus Queen admin: Awesome! Let’s start with a simple question. What is LuaSwap? Why LuaSwap and when was it born?
Ha Hoang: Yeah so maybe all you guys already know about Uniswap, one of the biggest names in the DeFi world. 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.
It has been 5 months since the initial launch of the LuaSwap project.
Right now we operate the AMM separately on TomoChain and Ethereum network, digital assets can be transferred via TomoBridge. I think one of the key differences of LuaSwap here is that we are focus on smaller pools of emerging tokens instead of fighting for liquidity within the top token pools. Secondly, LuaSwap is a multi-chain platform as now we are building on TomoChain and Ethereum and maybe other platforms in the future. And the last one is the tokennomics.
Venus Queen admin: Are you planning to get on BSC anytime soon?
Ha Hoang: BSC is growing rapidly and I think they have potential to become a key platform for DeFi development. We will consider this possibility after completing TomoChain version.
Venus Queen admin: That is a good approach to start with but once again I can see liquidity is being the issue. How are you going to make sure there will be enough liquidity even for the smaller pools.
Ha Hoang: We take a direct approach to potential projects, working with them to provide the best liquidity and the support from their community combined with marketing activities to get the best liquidity as we can.
Venus Queen admin: I am confident that will be added advantage. How far we are in the roadmap? What should we expect in the next quarter from Luaswap?
Ha Hoang: During the short yet intensive phase, we have achieved some great results:
- Launched LuaSwap Staking and successfully conducted liquidity migration from Uniswap to LuaSwap exchange.
- Launched LuaSwap V1.0 core products on both TomoChain and Ethereum
We just released LuaSafe on TomoChain and the next milestone is farming. Besides that I think it’s time for us to reaching out with some marketing activities including Community activities, Co-marketing plans with partners/exchanges, Media and influencer, More security audits.
We also work with TomoBridge team to optimize and try to release a new version of Bridge which will support other blockchain platforms.
Venus Queen admin: Sounds very exciting I must say. Do we have iOS wallet for LuaSwap yet?
Ha Hoang: LuaSwap dapp version is now supported by TomoWallet and TrustWallet in a mobile friendly UX. We also support wallet connect so you guys can access LuaSwap from any crypto wallet supporting that feature.
Venus Queen admin: Also if you can talk little bit about tokenomics please.
Ha Hoang: LUA’s token economics is re-designed with a vesting schedule to not only reward early adopters but also incentivize them to stay and participate in governance for a longer period of time. We have no pre sale, pre-mine. LUA farming features a short-term hyper inflationary period of 8 weeks in which block rewards have a 128 times multiplier in the first two weeks, and are halved every week afterward. 25 percent of tokens farmed in this period will be released immediately, while the 75 percent remaining will have a one year vesting period starting approximately at 17th week (21 Jan 2021). The vesting period ensures token farmers have incentives to stay with the protocol over the long-term.
The hyper inflationary is the first 8 weeks since LuaSwap initial phrase. And now user who joined that can unlock their token every block on Ethereum linearly over a year.
Venus Queen admin: That is good to know so no more crazy farming rewards. Most often people ask me this question “How they’re gonna face the fact that by staking, they’re giving away LUA for free, which will drive the price down as people will dump their free LUA. If they’ll do token burns or something”.
Ha Hoang: To avoid that we have buy back mechanism on LuaSwap (both TomoChain and Ethereum) which will use 0.05% from trade fee on the platform to buy LUA at market price then redistribute it to all LUA holders who stake into LuaSafe pool.
Venus Queen admin: So which one do you suggest to existing LUA holders? Pooling, Farming, LuaSafe or something else?
Ha Hoang: I think LuaSafe is the best choice if you want to have stable APY and no need to worry about impermanent loss. LuaSafe is now available on both TomoChain and Ethereum platforms. The APY is around 2-30% this week and can be higher depending on trading volume of LuaSwap. So it varies on weekly basis depending on the trading volume.
LuaSafe income is generated through a portion of fees collected and distributed in the following way:
(1) 0.05% from swap fees across all pairs
(2) 0.1% from withdrawal fees for LPs withdrawing liquidity from liquidity pools.
(3) 0.5% from users withdrawing their LUA staked in LuaSafe
Venus Queen admin: I heard the APY was really good last week but now it makes sense because the volume was really good too.
Ha Hoang: Yes, the more volume LuaSwap have, the higher APY Lua’s stakers will get and now we have more than 20 mil LUA staking in LuaSafe.
Venus Queen admin: Is there any lock period if I want to unstake my LUA tokens?
Ha Hoang: You can withdraw your fund from LuaSafe anytime you want but you should wait till we distribute the reward from buy back event every week to make sure you get your LUA from the pool.
Right now our top priority is farming feature on TomoChain platform, besides that we are working on cross portal swap to connect liquidity which aggregates liquidity from a variety of sources while getting the best conversion rates on a single interface for all actions. This feature will help to connect liquidity from many sources for example LuaSwap can connect the liquidity with TomoDEX on TomoChain or Sushiswap on Ethereum.
For long-term plan LuaSwap plans to develop a future swap system to facilitate decentralized margin trading of tokens where settlement automatically takes place on-chain, eliminating the need for a third party. I can say that’s not easy at all but it will have a big impact when it releases.
Venus Queen admin: Looks like we have @longvuong with us today. He is the founder of the TOMOchain. A very well respected name in the crypto space. Please welcome to our family sir.
Long Vuong: Hi everyone, thanks for having me. LuaSwap is doing well at the moment. DEFI space still has a lot of room to grow, and LuaSwap will be an important part there.
There are a few major directions LuaSwap can go: 1) like mentioned above, working on a version of future/ margin swap; 2) working on a new feature that allows for DEFI team fundraising cross-chain; 3) multi chain expansion ann then work on a solution that enables liquidity to flow cross-chain.
We are weighing these alternatives atm, and will decide the current priorities. I think eventually LuaSwap will have all of these features.
TomoChain Lab has about 30 people. LuaSwap has a dozen of people working on it in different capacity.
Venus Queen admin: Thats good sized team cranking quality product. If you dont mind me asking, can you elaborate whats next big thing for tomochain eco-system?
Long Vuong: TomoChain is now widely owned by a lot of people. It is a truly decentralized public chain that counts Binance, KuCoin, CoinGecko etc. amongst 150 Masternode validators. We will focus on decentralizing the ecosystem further this year by launching a new governance layer. This will help to spur further innovation and participation from the broader community.
TomoChain Lab will continue to produce quality output to TomoChain ecosystem including privacy solution, brigde solution, and other products.
Venus Queen admin: Thanks sir for the insights. Lastly, would like to hear from you on overall thoughts around crypto industry, how largely it has matured over past few years and where do you see it heading over next couple of years?
Long Vuong: My thesis I hold for a long time is that: crypto market cap will exceed the total banking market cap at some points. It will probably take another 10 years. I think people should pay attention to macro condition as there will be some huge cycles along the way. However, re-design and re-building finances based on crypto and pure software like DEFI is inevitable.
Venus Queen admin: I promise this one will be last question from me Sir. How TOMOchain will be scalable?
Long Vuong: TomoChain is scalable now. We have a different approach from Ethereum that we don’t adopt sharding as it will break contract’s composability. We will upgrade the infrastructure as we move forward.
Q1: When are you giving the rewards for the LuaSafe holders and how it’s gonna be given? The % of the Lua’s you staked from the total staked?
Ha Hoang: We already distributed reward on TomoChain yesterday and will do that every monday. 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.
Q2: What are the next planned steps to increase adoption and awareness among people and more specifically among professional asset management?
Ha Hoang: Market making is a critical part of financial market, the rise of decentralized exchange and DeFi has promoted a new kind of model call AMM. LuaSwap allows anyone to join and provide liquidity for the exchange. Now we are discussing with numerous partners and projects to bring their tokens to LuaSwap as well as call for the contribution from community and supporters. TomoBridge new version also expected to help the transition from other platform more convinient.
Q3: What is guarantee LUA wil not scam with investors? There were many project come and scam with investors, so how can LUA will gain investors trust?
Ha Hoang: We have no presale as well as pre mine token, our contracts are audited by Arcardia group which you can find the report on their site.
Q4: As a community driven project and me a developer am interested in contributing to the project, do you have such programs.
Ha Hoang: Yes, we understand that contribution from community is a big support for us, and we have plan to do a bug bounty for developer in the future