$LSP

Introduction

LSP is a reward and governance asset which has a major role in keeping the Lumenswap ecosystem cycle dynamic and decentralized.

1,000,000,000 LSP asset (fixed) have been minted at the genesis and will be vested over the course of 10 years.

Asset info

Asset issuer: GAB7STHVD…MKDM24WK

Asset code: LSP

Asset type: credit_alphanum4

Decimal: 7

Note: We have enabled the Immutable flag for LSP, which means that the asset issuer (Lumenswap team) has no control over the asset and the holders have their own control. Our reason for handing over total control was that Lumenswap is a decentralized project by nature and developers must have no influence over assets. Read more about accounts flags: https://developers.stellar.org/docs/glossary/accounts/#flags

LSP Tokenomics

Asset allocation

19% Team

16% Foundation

3% Advisors

40% Ecosystem Rewards

12% Community public sale

10% Marketing

LSP asset circulation schedule

Lock details

To establish transparency in the way assets are unlocked according to the plan we announced, we put them in different addresses so that you can follow their distribution process.

Public sale account: GA6N5CBQ…FX56B72D

Team account: GB6OM72C…MV5XLD4I

Advisor account: GDTSM26B…HXW5WIUM

Ecosystem rewards account: GDDD65VO…GSZE6BBY

Marketing account: GCYN3F4D…5J266YLJ

Foundation account: GCLQTGIH…J2EODJH3

Why LSP

For a number of reasons, a crypto exchange may create its own asset, and exchange owners frequently distribute assets to users as incentives. Most exchange assets are meant to enhance an exchange’s liquidity, reward trading activity, or make the exchange’s community governance process easier. Let’s take a deeper look on the process:

Enhanced liquidity

In a financial market, liquidity refers to the availability of trading activity that can be depended on. Markets with greater liquidity run more smoothly, and assets with greater liquidity may be traded more readily without significant price changes or slippage. Crypto exchanges can utilize native assets to motivate market makers in the absence of traditional market makers by giving incentives proportionally to their overall trading volume or through specified staking programs.

Governance

Not all cryptocurrency exchange assets are intended to be used as a bonus for platform users. Several crypto exchanges have released native assets as a governance tool for the exchange’s future development. While this use case is less frequent than others, decentralized exchange assets have become an increasingly significant goal for DEXs looking to migrate to completely community-run operations.

Reward

1. Holder reward

Duration: ~6 years

Amount: 234,000,000 LSP (3,250,000 LSP for each month)

Info: This reward is for LSP holders. To be eligible, all you need to do is hold more than 10,000 LSP in your wallet. (Note that you need to hold the LSPs in your personal wallet. Exchange wallets will not be included in the reward program.)

Lumenswap will take monthly snapshots on a random day, and eligible holders will be rewarded in proportion to their assets.

2. LP reward:

Duration: ~6 years

Amount: 166,000,000 LSP (2,305,555 LSP for each month)

Info: This reward is for LSP liquidity providers. To be eligible, you need to add more than 1,000 LSP to the LSP/XLM or LSP/USDC pools.

Each month, Lumenswap will take random snapshots of the eligible liquidity providers and reward them in proportion to their assets in the pool.

Note: If you provide more than 10,000 LSP as liquidity, you will also be eligible for the holder reward in addition to the LP reward.