Everything There Is To Know About LooksRare (LOOKS)

Trades of non-fungible tokens (NFTs) in 2021 accumulated over $24 billion.

Since its debut in early 2021, OpenSea has reached an all-time high trading volume of almost $5 billion. LooksRare has gained much attention on social media and is positioning itself as a competitor with attractive features. LooksRare Price is generating a daily volume of over $394 million.

LooksRare: What Is It?

LooksRare is a decentralized, community-driven NFT marketplace that rewards traders, token holders, creators, and collectors.

The platform was launched in January 2022 by two unidentified founders using the pseudonyms “Zodd” and “Guts.” There were 11 people on the team. LooksRare aimed to dethrone OpenSea as the top NFT provider.

How Are LOOKS Used?

LooksRare lets users stake their LOOKS tokens and get 700% APR in WETH (wrapped Ether) and LOOKS. The APR will decrease as staker onboarding increases.

There will be both types of stakes, passive and active. Most token holders are active stakes, and their LOOKS tokens are fully unlocked.

The LOOKS tokens of passive stakers are locked for trading but unlocked for staking – like Treasury, Team, and Strategic Sales tokens. You don’t earn tokens if you’re a passive stalker.

LooksRare rewards are calculated at the end of every period and split between active and passive stakers.

For each 6,500 block period, active stakers will receive the following WETH rewards:

• Invoices collected in the previous 6,500 block period / 6,500
• Each user’s staked LOOKS at the block level is compared to the total amount of LOOKS staked at the block level during the 6,500 block period to determine the total WETH rewards.

LooksRare Rewards

As part of the LOOKS token, participants such as users and creators will receive the following rewards:

• LOOKS tokens are awarded as rewards to users who buy and sell NFTs from selected collections.
• NFTs that qualify for LOOKS rewards can be traded for rewards.

Both the buyer and the seller of an item earn incentives based on their trade volume (other than for private sales). Daily trading rewards are calculated and distributed two hours after the day’s end. Users are calculated by taking the volume of their trades in eligible collections and dividing it by the total platform transaction volume.

Each day, claims are halted between 00:00 AM and 2:00 AM UTC while trading rewards are processed. Every day, rewards can be claimed at 2:00 AM UTC.

Only collections with a trading volume of 1,000 ETH will be automatically added to the list of eligible collections earning rewards. A reward will be paid after the next day’s 00:00 AM UTC if a collection reaches 1,000 ETH in trading volume.

A 100% trading fee is rewarded to users who stake LOOKS tokens.

The platform’s users can stake LOOKS and earn extra LOOKS rewards in addition to the WETH trading fee incentives. Furthermore, all LOOKS tokens that are staked are compounded automatically for those who want to leave them staked.

Users must stake their pending rewards manually to maximize their staked tokens. LooksRare, however, has automated compounding for all LOOKS users to reduce gas fees and opportunity costs.

Staked LOOKS rewards are now re-staked (or compounded) into the pool immediately to increase the number of staked LOOKS. A user’s wallet receives both the initial staked amount and the compounded rewards when he or she “unstakes” their LOOKS.

How Does LooksRare Work?

LooksRare uses the Ethereum blockchain, and participants can trade Ethereum NFTs on OpenSea. There’s a 2% fee on NFT sales, excluding private ones.

After every 6,500 ETH block period (approximately 24 hours), the WETH fees accumulated from sales are combined and distributed to each staker’s LOOKS token.

You can withdraw WETH rewards as many times as you’d like, but there’s a gas fee. Even if you forget to claim your WETH, your WETH will keep accumulating.

The project is community-first, with 100% of the revenue going to LOOKS token holders. The team isn’t paid directly and only gets rewarded if things go well.

Final Thoughts

LooksRare is an excellent place to watch if you plan to buy or sell NFTs. LooksRare is a community-first trading platform with a rewards system that’s good for everyone, even token holders. As OpenSea gains headway on other marketplaces, LooksRare is catching up and becoming a viable competitor. The community is vibrant, offers rewards, and follows through on its promise. LooksRare has plenty of growth potential as long as the NFT market is active. Because of that, we recommend assessing your portfolio and deciding what level of risk you’re willing to take.