4th Buyback and Burn Outcome

. 2 min read

We are pleased to announce that the fourth LocalCoinSwap buyback and burn was completed on Sunday, September 20, 2020.

At a Glance:

  • Amount of LCS burnt: 265,729.02 LCS
  • Average LCS buyback price: 0.0000661 ETH / 0.0255 USD
  • Price increase during buyback:  56.74%

The Details

Unlike previous buybacks, this one was conducted on Uniswap rather than Hotbit. The LCS community had voiced their concerns over using a centralized platform to complete the buyback and had requested to trial a different solution.

Uniswap uses a decentralized Automated Market Maker ("AMM") model of exchange and price discovery rather than the traditional orderbook model that Hotbit utilizes.

The benefit of the AMM model is a truly decentralized and transparent exchange, and the ability for LCS holders to derive additional benefit and revenue from becoming Liquidity Providers ("LPs"). LPs share in the trade fees from swapping activity in the pool.

Whereas the drawbacks of using an AMM for the buyback is the guaranteed slippage on every order. On an AMM model there is no real "price" of an asset due to the slope of the AMM curve formula that determines relative values of the assets of the pool (x*y=k in the case of Uniswap). This causes a higher average buyback price, but less tokens burned overall.

The Uniswap buyback transaction can be seen on the blockchain here:

The token burn can be seen on the blockchain here:

A breakdown of the buyback and burn as well as the quarterly volume figures can be found in our quarterly report.

Quarter 3, 2020 saw an increase in trade volume in USD terms of over 87%  in comparison to Q2 (*using prices as of buyback dates)

As mentioned earlier, there was a decrease in the number of tokens destroyed as compared to he last quarter due to the different exchange used for the buyback. However, the average buyback price was 260% higher.

Throughout the upcoming quarter we will continue to engage with the community to determine the platform and structure of the next buyback! Please fee free to drop into the Telegram group to join the discussion!

We are excited to continue to serve the LocalCoinSwap and P2P cryptocurrency communities and to grow throughout 2020 and beyond.

Thank you for your continued support and stay safe!

Happy Trading,
The LocalCoinSwap Team

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