Whether it be a person who is thorough in the knowledge of NFTs or who knows a gist about it, most of them know OpenSea as “The NFT Marketplace.” Well, what if we tell you a marketplace that has low trading fees and gives trading rewards exists? Wouldn’t that be thrilling?
Well, hold your horses. Such an NFT marketplace does exist. The LooksRare marketplace is a brewing marketplace into eminence. It is an NFT marketplace where the community is the top priority. The marketplace also offers trading rewards. In addition, more exciting thing is that the trading fees are 20% lower than the OpenSea marketplace. All this with the trading rewards offered by the marketplace you can get about 54.92% APR. All this is just enough to captivate any NFT investor.
Now let’s dive deeper into what the LooksRare marketplace has in store for the NFT investors and traders.
The LooksRare marketplace distributes several rewards to the trades. There are trading rewards and staking rewards. On the LooksRare marketplace, trading rewards are calculated and given out daily when you buy or sell NFTs. You can earn more rewards by staking LOOKS tokens.
The trading fees that are collected are given out to the stakers of LOOKS by the LooksRare marketplace. Also, Every 24 hours, rates are modified based on the previous day’s activities.
Previously the reward for staking was 165% APR. The APR is bifurcated as 100% APR in WETH (Wrapped Ethereum) and 65% in LOOKS. The current APR % is 54.92%, although, these rewards fluctuate based on various factors. The factors which affect it are trading volume, token prices, liquidity, and the amount staked.
Here is a tweet posted by LooksRare showing the rewards given out to their community on 25th March 2022.
How are Trading Rewards calculated on LooksRare?
As mentioned before, the LooksRare marketplace offers trading rewards to traders every day. The trading rewards are calculated based on each user’s LooksRare trading volume expressed as a percentage of the platform’s overall trading volume, excluding private sales.
User A’s trading rewards on Day 1= a/b x c
- a is the user’s Trading Volume of Day 1
- b is the total Trading Volume of the Platform on Day 1
- c is LOOKS rewards per day
How are LOOKS rewards calculated on LooksRare?
A user’s LOOKS staking rewards are calculated by the marketplace by the following method:
The total amount of staked LOOKS/LOOKS staked by User × LOOKS per block
How to trade NFTs on the LooksRare marketplace
Trading on the LooksRare marketplace is as simple as any other Marketplace. LooksRare works on the Ethereum blockchain, so you will have to set up an Ethereum-compatible wallet. The best wallet you can set up for yourself is the Metamask wallet. You can get the Metamask wallet on Play Store, Appstore, and Chrome Webstore.
To buy an NFT on the Marketplace you will have to add the required ETH or WETH to your wallet. The amount should be enough to buy the NFT along with paying the gas fees. If you want to buy and sell LOOKS tokens, you must trade them through Uniswap.
The LooksRare marketplace also allows a user to bid on a whole collection. With this, depending on how many of those NFTs are available to mint, you can submit a bid on a specific NFT and it will be sent to all of the sellers at once. By doing this, you can practically guarantee that you’ll obtain the best deal on your new NFT while putting in the least amount of effort.
LooksRare VS OpenSea
Well, now that all the benefits of the LooksRare marketplace are presented to you, let us compare it with OpenSea to help you decide on which marketplace to adhere to. Let’s see the differences between the two marketplaces with an instance.
The Bored Ape Yacht Club #4937 was sold on the LooksRare marketplace for 91 ETH on 14th January 2022. Along with the NFT, the buyer earned an extra $3.5K as trading rewards. On the other hand, the seller saved $1.5K in fees and earned the same amount as the buyer as trading rewards. So by trading on the LooksRare marketplace, the seller earned $5000, and the buyer earned $3.5K.
Whereas if the NFT was sold on the OpeaSea instead of LooksRare, neither the seller nor the buyer would’ve earned anything trading rewards nor the seller would’ve saved in fees.
Lastly, the LooksRare marketplace is one true NFT marketplace. It is filled with rewards and benefits for the traders. Trading rewards and staking rewards will add to the buyer and seller making a fortune through a single sale. This NFT marketplace is nothing short of being the best and will outrank the other NFT marketplaces in no time.