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LAST UPDATED:

September 8, 2021

Lumenswap

We believe that we can build a platform for global users to enjoy frictionless financial transactions.

SUMMARY

What is Lumenswap?
Lumenswap is an open-source client for the Stellar network that allows you to swap and trade assets on the network using a friendly, minimal interface.

 

Features

Find the Best Prices
Lumenswap uses Horizon to choose the best rates for a trade based on the liquidity rates and the submitted order books on the network.

 

Fast and Low Costs
Lumenswap client is on the Stellar Network so it benefits from its features such as scalability and low fees.

 

Open and Decentralized
By default, all of the available assets on the Stellar Network are also available for trade on Lumenswap. You can add whichever you want to Lumenswap and convert them to each other.

 

Support of Popular Wallets
For better accessibility, Lumenswap supports different wallets. Currently, you can use Rabet, Freighter, and Albedo.

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SUMMARY

What is Lumenswap?
Lumenswap is an open-source client for the Stellar network that allows you to swap and trade assets on the network using a friendly, minimal interface.

 

Features

Find the Best Prices
Lumenswap uses Horizon to choose the best rates for a trade based on the liquidity rates and the submitted order books on the network.

 

Fast and Low Costs
Lumenswap client is on the Stellar Network so it benefits from its features such as scalability and low fees.

 

Open and Decentralized
By default, all of the available assets on the Stellar Network are also available for trade on Lumenswap. You can add whichever you want to Lumenswap and convert them to each other.

 

Support of Popular Wallets
For better accessibility, Lumenswap supports different wallets. Currently, you can use Rabet, Freighter, and Albedo.

GOAL

STEPS

 BUDGET REQUEST

GOAL

Becoming a comprehensive platform for DeFi operations on Stellar.

STEPS

First Milestone
Info: Redesigning the swap section
Release date: Q1 2021
 
Second Milestone
Info: Designing and integrating the spot section
Release date: Q2 2021
 
Third Milestone
Info: Introducing LSP Asset
Release date: Q2 2021
 
Fourth Milestone
Info: Lauching Lumenswap academy
Release date: Q3 2021
 
Fifth Milestone
Info: Adding Market and Wallet features to OMB market
Release date: Q3 2021
 
Sixth Milestone
Info: Designing and integrating AMM market
Release date: Q4 2021
 
Seventh Milestone
Info: Designing and implementing the auction platform
Release date: Q4 2021
 
Eighth Milestone
Info: Designing and implementing the bridge between Stellar and other blockchains
Release date: Q1 2022
 
Ninth Milestone
Designing and implementing a lending protocol
Release date: Q2 2022

 BUDGET REQUEST:

$100,000

worth of XLM

GOAL

 BUDGET REQUEST

Becoming a comprehensive platform for DeFi operations on Stellar.

$100,000

worth of XLM

OUR REQUEST

Lumenswap comes from humble beginnings. It started as a simple solution allowing users to swap various assets and gradually grew to its current state. We have already reached four milestones. The first one involved redesigning and modifying the swap capabilities as the basis of our platform at the time. We needed to offer the best client for swapping assets.

Learn more about the swap section→

   

In the second milestone, we went a step further and decided to implement spot transactions so that users could take advantage of features such as limit orders and trade any pair of assets supported on Stellar.

Learn more about the spot section →

 

Like any other exchange, we needed a force to create an economic and incentive flow within our ecosystem, so we decided in the third milestone to introduce LSP assets.

Learn more about LSP assets →

 

In the fourth milestone, we created Lumenswap Academy, an online platform to help users learn more about blockchains and Stellar. Each month, we aim to cover an important topic or trend in the field of blockchains. In our opinion, knowledge is one of the most important factors when developing an ecosystem, and ecosystem leaders must find ways to transfer that knowledge to community members.

Learn more about Lumenswap academy →

   

In the fifth milestone, to fulfill our slogan (i.e., CEX experience and DEX security), we aim to add Wallet and Market features. The Wallet allows users to manage their assets and send them to different addresses on the network. The Market feature displays statistics about the assets listed on Lumenswap and assets with the significant volume on the network.

 

In the sixth milestone, our objective is to design and integrate the AMM, which will be the most important event of this year for Stellar and Lumenswap. As you are reading this proposal, we are creating designs for our AMM pages and striving to create the best possible UX.In the seventh milestone, our objective is to design and integrate the AMM, which will be the most important event of this year for Stellar and Lumenswap. As you are reading this proposal, we are creating designs for our AMM pages and striving to create the best possible UX.

   

The most ambitious client, i.e., the auction client, will be implemented in the seventh milestone. An ecosystem that does not allow users to invest their assets and gain profits, stands no chance of attracting sufficient liquidity and creating a dynamic community. That is why we decided to produce an auction platform on Stellar that allows project managers and developers to auction their assets. Users can participate in these auctions in a completely transparent and fair environment. We will initially support the Dutch and English models.

   

The objective of the eighth milestone is to allow users to bring their assets to Stellar from different networks and enjoy the low costs and speed of Stellar. This is another piece of the puzzle, which will drive liquidity on Stellar.

   

The final piece of the puzzle, which will make Lumenswap a complete DeFi platform is to implement the lending protocol. This protocol will be built on the Pendulum network and will act as a marketplace for lending—similar to Compound.

PROBLEM & SOLUTION

Problem
Stellar needs to attract more liquidity to stay in the competition.
 
Solution
We aim to design and implement a suite of integrated financial apps with a frictionless UX and minimal UI to attract more users and fuel liquidity growth.
 
These apps include:
 
1. Order book-based market
2. AMM-based market
3. Academy
4. A bridge between Stellar and other blockchains
5. Lending protocol
6. Auction platform

PRODUCTS & SERVICES

1. OBM (Order Book Market)
This is an order book-based marketplace that allows users to select pairs and trade any asset on Stellar.
 
2. AMM (Automated Market Making)
This market is based on the AMM model, in which users can provide liquidity and receive a fee in return. They can also exchange their assets at the best rates.
 
3. Academy
An online platform to help users learn more about blockchains and Stellar. Each month, we aim to cover an important topic or trend in the field of blockchains.
 
4. Bridge
This is a client for transferring assets between other blockchains (such as Ethereum and BSC) and Stellar. You can easily transfer your assets between different networks on a simple platform.
 
5. Lending
This is a Compound-like lending protocol, a peer-to-peer marketplace for asset lending and borrowing to be built on the Pendulum network. In this protocol, users can receive a fee for providing liquidity (yield farming) or receive a loan by locking their assets as collateral.
 
6. Auction
On this platform, asset issuers and project founders can hold auctions for their assets and allow users to participate in those auctions. This platform will not be permissionless because Lumenswap will check the quality of the project and the team to protect users' assets. Projects that meet the minimum requirements will be given access to the platform.

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PRODUCTS & SERVICES

1. OBM (Order Book Market)
This is an order book-based marketplace that allows users to select pairs and trade any asset on Stellar.
 
2. AMM (Automated Market Making)
This market is based on the AMM model, in which users can provide liquidity and receive a fee in return. They can also exchange their assets at the best rates.
 
3. Academy
An online platform to help users learn more about blockchains and Stellar. Each month, we aim to cover an important topic or trend in the field of blockchains.
 
4. Bridge
This is a client for transferring assets between other blockchains (such as Ethereum and BSC) and Stellar. You can easily transfer your assets between different networks on a simple platform.
 
5. Lending
This is a Compound-like lending protocol, a peer-to-peer marketplace for asset lending and borrowing to be built on the Pendulum network. In this protocol, users can receive a fee for providing liquidity (yield farming) or receive a loan by locking their assets as collateral.
 
6. Auction
On this platform, asset issuers and project founders can hold auctions for their assets and allow users to participate in those auctions. This platform will not be permissionless because Lumenswap will check the quality of the project and the team to protect users' assets. Projects that meet the minimum requirements will be given access to the platform.

PRODUCTS & SERVICES

1. OBM (Order Book Market)
This is an order book-based marketplace that allows users to select pairs and trade any asset on Stellar.
 
2. AMM (Automated Market Making)
This market is based on the AMM model, in which users can provide liquidity and receive a fee in return. They can also exchange their assets at the best rates.
 
3. Academy
An online platform to help users learn more about blockchains and Stellar. Each month, we aim to cover an important topic or trend in the field of blockchains.
 
4. Bridge
This is a client for transferring assets between other blockchains (such as Ethereum and BSC) and Stellar. You can easily transfer your assets between different networks on a simple platform.
 
5. Lending
This is a Compound-like lending protocol, a peer-to-peer marketplace for asset lending and borrowing to be built on the Pendulum network. In this protocol, users can receive a fee for providing liquidity (yield farming) or receive a loan by locking their assets as collateral.
 
6. Auction
On this platform, asset issuers and project founders can hold auctions for their assets and allow users to participate in those auctions. This platform will not be permissionless because Lumenswap will check the quality of the project and the team to protect users' assets. Projects that meet the minimum requirements will be given access to the platform.

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^ to view all: hover over above images and scroll down  ^

PRODUCTS & SERVICES

1. OBM (Order Book Market)
This is an order book-based marketplace that allows users to select pairs and trade any asset on Stellar.
 
2. AMM (Automated Market Making)
This market is based on the AMM model, in which users can provide liquidity and receive a fee in return. They can also exchange their assets at the best rates.
 
3. Academy
An online platform to help users learn more about blockchains and Stellar. Each month, we aim to cover an important topic or trend in the field of blockchains.
 
4. Bridge
This is a client for transferring assets between other blockchains (such as Ethereum and BSC) and Stellar. You can easily transfer your assets between different networks on a simple platform.
 
5. Lending
This is a Compound-like lending protocol, a peer-to-peer marketplace for asset lending and borrowing to be built on the Pendulum network. In this protocol, users can receive a fee for providing liquidity (yield farming) or receive a loan by locking their assets as collateral.
 
6. Auction
On this platform, asset issuers and project founders can hold auctions for their assets and allow users to participate in those auctions. This platform will not be permissionless because Lumenswap will check the quality of the project and the team to protect users' assets. Projects that meet the minimum requirements will be given access to the platform.

TARGET MARKET

Who currently uses your product?
Stellar ecosystem participants, from traders to investors looking to take advantage of the network’s fees, accessibility, and easily swap and hold their Stellar tokens.
 
Target market
Wider user base and demographic, attracting existing and potential users from more established layer1 DeFi ecosystems (ETH, BSC, SOL, etc) to take advantage of Stellar’s superior blockchain architecture. This can be done through developing our product suite available on our platform, such as ;
 
- Providing a leading, accessible decentralized swap and trading experience
- Creating a simple, trustless asset bridge (ETH <> XLM, and BSC <> XLM)
- Launching an overcollateralized lending product
- Education materials/guides
- Organic marketing
- Community building/growth
 
By building a complete DeFi application layer suite on Stellar, and combining it with valuable, organic marketing and community growth strategies, existing and novel third-party chain users will be attracted to the Lumenswap platform, technology, and network/partner effects of the wider Stellar ecosystem.

REVENUE MODEL

We have created an LSP asset as the currency in Lumenswap's ecosystem. Users need to hold LSP to use clients such as auctions and lending. Therefore, as Lumenswap attracts more users and new use cases emerge, demand for LSP will rise, thereby increasing its value. Part of LSP's supply has been allocated to the team, which will be used to fund development efforts in the coming years.

MARKET RESEARCH

Industry - Cryptocurrency: $2T
 
L1 - Ethereum: $375bn
 
Application layers - (DeFi/AMM architecture): $100bn, $85bn TVL
 
Market leaders - Uni, Sushi: $17bn
 
Leading Ethereum-based DeFi swap protocols make up just over 17% of the industry's $100bn capitalizations. In comparison, XLMs marketcap makes up only 8%. Therefore with the launch of AMM and smart contract functionality for the Stellar network, Stellar as a viable decentralized finance L1 option will increase user adoption and capitalization exponentially, bringing the ecosystem inline with the wider exponential growth rate of the DeFi markets.
 
Lumenswap can expect to capture a significant portion of this relative potential future capitalization with its accessible swap platform and adoption of Stellar’s increased technical functionality.
 
By using the percentage value of Ethereum and Uniswap at a 1:1 ratio with Stellar and its native applications, we can extrapolate a future-value prediction for Lumenswap at $1.2bn (15% of $8bn). This value will increase exponentially with the greater adoption of the Stellar network.

THREATS & OPPORTUNITIES

Legislative - threats from jurisdiction oversight regarding developer responsibilities/identity (smart contracts, tax obligations, DAO legalities, etc), AML/KYC transactional reporting obligation, stablecoin, and fiat on/off-ramp restrictions, would all significantly affect the ability of the development team to deliver innovative accessible decentralized finance products.
 
Potential opportunities include taking advantage of welcoming jurisdictions (for the place of registration etc) to continue fostering innovation.

COMPETITION

MARKETING & SALES

How will you reach your prospects?
Organic product marketing initiatives to build brand awareness and acquire users into Telegram and Discord communities. Regular product AMAs, quality KOL partnerships, community-led competitions, informative educational materials, and guides, efficient community management.
 
The lifetime value of the customer will be increased through; native governance token participation, platform feature development and expansion, and closed-loop community communication and feedback for future products.
 
Revenue Model
We have created an LSP asset as the currency in Lumenswap's ecosystem. Users need to hold LSP to use clients such as auctions and lending. Therefore, as Lumenswap attracts more users and new use cases emerge, demand for LSP will rise, thereby increasing its value. Part of LSP's supply has been allocated to the team, which will be used to fund development efforts in the coming years.

RESOURCES & RELATIONSHIPS

Additional images

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About you

Name: Vladimir Kholodenko
Position: CEO & Co-founder
Social: https://t.me/VladKholod

Name: Amir Ansari
Position: Co-founder & head of growth
Social: https://twitter.com/amir1373ansari

Name: Ali Movahedi
Position: CTO
Social: https://gitlab.com/amovah

Name: Mojtaba Mousavi
Position: UI/UX designer
Social: https://dribbble.com/MojtabaMousavi

Name: John Mountford
Position: Community manager
Social: https://twitter.com/thebu11runner

Name: Ben Colley
Position: Community educator
Social: https://twitter.com/bullringcrypto

Name: Mehdi
Position: Dev-ops engineer
Social:  https://gitlab.com/Mtt365

Name: Mersedeh Rahbar
Position: Front-end engineer
Social: https://gitlab.com/mersede

Name: Shayan
Position: Front-end engineer
Social: https://gitlab.com/shyn48

Name: George Naylor
Position: Advisor
Social: https://twitter.com/georgewnaylor

Name: Bora Yılmaz
Position: Advisor
Social: https://twitter.com/StellarXLMTR

COMMUNITY DISCUSSION