There were about $24 billion in total sales of non-fungible tokens, or NFTs, in 2021. Collections like CryptoPunks and Bored Ape Yacht Club (BAYC) became popular, and many crypto aficionados purchased NFT art associated with their digital identities.
As of early 2021, OpenSea was the leading NFT marketplace, with a trade volume of approximately $5 billion in January 2022. However, despite OpenSea’s present dominance in the NFT market, a platform called LooksRare has acquired enormous attention on social media platforms and is positioning itself to be quite a competitor with appealing features for consumers and a daily volume topping $394 million. LooksRare is examined in depth in this article.
What Is Looksrare?
For those who participate on the platform, LooksRare compensates traders, token holders, creators and collectors for doing so. The platform was created in January 2022 by two anonymous entrepreneurs going by the pseudonyms “Zodd” and “Guts,” with a staff of 11 people working on its development.
LooksRare set out to unseat OpenSea as the undisputed leader in the NFT market.
What Does It Mean to Have Looks?
This information was obtained from LooksRare.org.
LooksRare’s native token, LOOKS, fuels the marketplace’s operations. It has a total quantity of 1 billion and is now trading at $1.02 per coin. CoinMarketCap is the source for this information.
What Is the Purpose of Looks?
It is used for these purposes.
Staking LOOKS tokens on the LooksRare platform allows users to get over 700 percent APR in WETH (wrapped Ethereum) and LOOKS. Increasing the onboarding and stakeholder count will lower the APR over time. Staking can be done in two ways: actively or passively. The vast majority of token stakers are active stakers with fully unlocked LOOKS tokens.
Staking tokens, such as treasury, team, and strategic sale tokens, are locked for trade but unlocked for passive stakers. When you stake LOOKS, passive stakers don’t get any more tokens for their efforts. Staker incentives are calculated and shared between active and passive stakers at the conclusion of each period before being distributed. Each 6,500-block period, the following formula is used to determine how much WETH should be divided among the network’s active stakeholders:
Every staked LOOKS at a block is compared to the total LOOKS staked for the 6,500-block period to determine the total WETH award..
Rewards From Looksrare
Using the LOOKS token, users and authors can receive the following benefits in return for their participation: LOOKS tokens are given to users who buy and trade NFTs from selected collections. Incentives are given to both buyers and sellers based on the volume of their transactions (other than for private sales). Two hours following the end of the trading day, a daily total of trading awards is calculated and distributed. As a percentage of the entire platform transaction volume for qualified collections, they are determined for each user.
Processing trade rewards necessitates a two-hour pause in the daily claiming process. Every day at 2:00 a.m. UTC, these awards can be redeemed. In order to qualify for awards, a collection must have at least 1,000 ETH in total trading volume. If the trading volume of a collection reaches 1,000 ETH, awards will be distributed from sales completed the next day after 00:00 UTC.
Invite Board Nft
Trading fees are waived for holders of LOOKS tokens. To go along with the WETH trading fee incentives, the platform allows its users to stake LOOKS and gain additional LOOKS rewards. For individuals who like to keep their LOOKS tokens staked, the staked LOOKS tokens are automatically compounded.
To maximise their staked tokens, users must manually stake their awaiting prizes. LooksRare, however, has made it possible for all LOOKS users to benefit from auto-compounding.
MUST READ- About Social Finance (SOFI) Cryptocurrency
In order to enhance the number of LOOKS staked, the LOOKS rewards that were accumulated from the staked LOOKS balance are now re-staked (or compounded). Both the initial staked amount and the compounding rewards are removed from the user’s wallet when they unstake their LOOKS.
When It Comes to the Application, How Does Looksrare Function?
Ethereum NFTs offered on OpenSea can be traded on LooksRare, which is constructed using the Ethereum blockchain. All NFT sales on the platform are subject to a 2% sales fee (in WETH) except private purchases. After every 6,500 block period (about 24 hours), all WETH fees accumulated from sales are combined and divided to LOOKS token stakers per block for the next 6,500 block period.
Each time a user withdraws their WETH reward, they must pay the gas price. There’s no limit on how long WETH can accrue if they don’t claim it or decide to wait till petrol fees are cheaper.
For the sake of the community, all of the revenue created by LOOKS tokens is distributed to the holders of the tokens. The crew does not receive any money up front from the initiative and is only compensated if it is a success.
LooksRare has a number of notable features.
The LooksRare platform has the following features.
Unlike OpenSea, the Community-First NFT Marketplace LooksRare puts its users first by awarding prizes. Below is a chart showing the surge in trade volume from January 10–16, 2022.
In a market dominated by companies such as OpenSea, Bookshare is more than just a breath of new air. The team has also put its money where its mouth is by establishing a rewards system that is truly focused on its community. However, its genuine trading volume has continued to expand in the previous few weeks despite all the wash trading that has occurred.
LOOK and WITH incentives are also being re-invested in the market, creating a positive feedback loop. We’re giving LooksRare the seal of approval right now, and we strongly encourage you to do the same.