Singapore-based cryptocurrency exchange TomoChain announced the launch of LuaSwap, a liquidity swap DeFi protocol. It focuses on delivering support for emerging tokens and providing DeFi-based services.
The LuaSwap protocol will allow investors to farm LUA tokens starting from block 10,950,600. Before doing that, users must stake Uniswap’s LP tokens from the DEX’s own pools.
Initial liquidity pools are TOMOE-USDC, TOMOE-USDT, TOMOE-ETH, and LUA-USDC. Following this, new liquidity pools will be opened after staking LP tokens from Uniswap and SushiSwap pools.
The focus is to support smaller pools of emerging tokens instead of fighting for liquidity within the top token pools.
TomoChain intends to expand its platform by widening its services and availability in the DeFi space. Therefore, individual users and active traders of the TomoChain platform will have the chance to hold a share of LUA tokens.
LUA holders acquire governance rights within the network. These include selecting the kind of chains where the LuaSwap will be held on and the quantity of LUA to be shared with LPs.
Also, liquidity providers (LPs) will be given a shared part of the LUA token supply to incentivize them in supporting the pools. They share approximately 0.3% swap trading fees.
Subsequently, LUA token holders can vote to gain several pools throughout the newly-created protocol LuaSwap as they tour through the DeFi space. Moreover, LuaSwap provides users with an LUA treasury fund, which will mainly be spent on auditing, rewarding contributors, and supporting upcoming token projects and other LUA-related activities.