The Q3 2020 buyback and burn will officially occur on Sunday, September 20, 2020.
Unlike in previous periods, this upcoming buyback will occur on Uniswap instead of Hotbit.
LCS holders are overwhelmingly pro-privacy and pro-decentralization. There have been many requests from token holders to move the buyback onto a platform with less centralization in order to keep in line with the underlying ethos of LocalCoinSwap. We ran a poll in Telegram and we heard your feedback through all of our channels. There was a clear winner: the majority of respondents preferenced Uniswap so we have listened!
Uniswap offers several advantages over HotBit for completing the buyback:
- Completely decentralized
- No platform risk
- The decentralized nature of Uniswap means the protocol is controlled by code, not people. There is no platform to seize, steal, or lose your funds
- No LCS withdrawal fees or limits.
- Withdraw any amount from Uniswap with only paying the Ethereum blockchain’s gas fees
- More transparency
- The buyback is now completely on-chain. Anyone can trace/audit the swap and burn transactions from start to finish
- More accessibility
- Uniswap cannot exclude people from any region
- The buyback time is less important
- As the counter-party to the buyback order will be the LPs, there is less time-sensitivity compared to an order-book platform. This opens up the buyback benefits to holders in all timezones.
How can LCS holders benefit from this?
Uniswap operates through an Automated Market Maker “AMM” system rather than a traditional order book style exchange. Hence there are now more ways for users to benefit:
- Become a Liquidity Provider (LP) on Uniswap
LPs add LCS and ETH to the Uniswap pool to provide liquidity for users to swap against. LPs receive a portion of trade fees (in ETH and LCS) collected from this trade activity. More info can be found here
- Realize LCS appreciation
Given the forced buyer situation occurring due to the buyback, and the mechanics of Uniswap’s AMM model, the buyback’s ETH -> LCS swap will cause price slippage resulting in an increase in the price of LCS.
- Take advantage of the arbitrage opportunity
The slippage from the buyback on Uniswap will likely present an arbitrage opportunity between Uniswap and Hotbit. Some keen LCS holders can take advantage of this and trade between both exchanges to bring LCS to its fair market value.
- Participate part in DeFi
Decentralized Finance is huge at present and is showing no signs of slowing down. Getting accustomed to using platforms and protocols in the space can provide valuable experience to position yourself to take advantage of the many opportunities that may arise in this market in the future!
General Buyback and burn info
LocalCoinSwap will use 20% of the trade fees collected in this quarter to purchase LCS on the open market. All the LCS tokens purchased through this buyback will be subsequently burned. This will be the 4th time this process has taken place, and we look forward to giving back to our community members once again.
The amount used to conduct the buyback will be 20% of all trade fees collected between June 20, 2020, and September 19, 2020. In the week following this process, a report will be released outlining the outcome of the buyback and burn. This report will include statistics regarding the number of tokens that were burnt to provide the community with the necessary information to clearly understand the effect this burn has had on the overall token supply and other related factors.
We are continuing to see growth in BTC trade volume and trade count from previous quarters, and we expect this burn to be the most successful so far! The team has been working on consistently improving the platform as well as working with other industry players to increase LocalCoinSwap’s visibility in the market. We are thankful for the great community we have of LCS holders and P2P traders for continuing to help in the journey to becoming the #1 P2P platform.
Blog: How to provide liquidity on Uniswap
Blog: Uniswap buyback proposal
Uniswap: Buy and sell LCS
Uniswap: Add liquidity to the pool