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 code: LSP
Asset type: credit_alphanum4
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
40% Ecosystem Rewards
12% Community public sale
LSP asset circulation schedule
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.
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:
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.
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.
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.