LooksRare: NFT Marketplace & How It Differs From OpenSea

 

At the height of Non-Fungible Token (NFT) and its popularity in 2021 and 2022, various NFT platforms, including OpenSea, NiftyGateway, Rarible, and the like, have achieved great fame. However, in early 2022, a new NFT platform emerged known as LooksRare.

LooksRare is a community-based NFT platform operating on top of the Ethereum blockchain. The platform was founded in January 2022 by two co-founders who chose to remain anonymous under the nicknames Zodd and Guts. Post-launch, LooksRare recorded significant weekly trading volumes, almost three times those achieved by OpenSea. This success was largely attributed to the LOOKS token airdrop.

To learn more about what LooksRare is, how to use it, its features, advantages and disadvantages, and how it differs from OpenSea, check out the full review below!

 

What is LooksRare, and Who is the Founder?

LooksRare is a community-based NFT marketplace built on the Ethereum blockchain. The platform initially actively provides trading rewards to traders, collectors, and creators to encourage participation in the platform. However, as of September 2023, the reward approach has been discontinued and replaced with a different strategy. Bearing the motto “by NFT people, for NFT people,” LooksRare allocates the entire trading fee as a reward to LOOKS token creators and stakers.<nbsp;< span=””></nbsp;<>

Since its launch in January 2022, weekly trading volume on the platform has steadily increased, reaching approximately $2,9,000,000,000, or almost three times the volume of OpenSea for the same period. One of the factors for the increased trading volume was the airdrop of the LOOKS token, which is LooksRare’s platform token. Users can claim LOOKS tokens for free by making NFT transactions on OpenSea worth 3 ETH over the previous six months and listing NFTs on LooksRare.

LooksRare was founded by two anonymous co-founders with the nicknames Zodd and Guts in January 2022. They have plans to compete with OpenSea by offering additional usability through LOOKS tokens as user incentives. To attract users and achieve high trading volumes, LooksRare adopts an approach similar to SushiSwap by launching a “vampire attack” on Uniswap. Differently, LooksRare is giving away tokens for free to drain liquidity from its competitor, OpenSea.

 

How to Use LooksRare?

 

You can purchase NFTs on the LooksRare website at https://looksrare.org/. Beforehand, make sure to connect to your crypto wallet. One commonly used crypto wallet is MetaMask. However, you can also use a variety of other crypto wallets through WalletConnect.

The overall appearance of LooksRare is similar to other NFT marketplaces and is very user-friendly. To purchase NFTs, search for collections through the search bar and click “Buy” or make an offer. The process of selling NFTs on LooksRare is also easy. Click “Sell” on the homepage, select the NFT you want to sell, and set the price and duration of the offer.

However, remember that the NFT minting process at LooksRare differs from most other NFT marketplaces. This platform uses Manifold as a tool for the NFT minting process. Manifold itself is a platform used for creating and minting NFTs. Furthermore, to start the NFT minting process, click on the “Create Collection” option in your profile, and you will be directed to the Manifold site. Next, follow the guidelines provided.

 

Get to Know LooksRare Features

LooksRare provides several interesting features that add value and user experience to its ecosystem. The following are some of the main features that can be found on the LooksRare platform, including:

 

1. NFT Trade

LooksRare facilitates the buying and selling NFT collections created on the Ethereum blockchain, covering most of the collections available on OpenSea. In this transaction, LooksRare applied a standard fee of 2% of the total transaction value, offering a lower rate than competitors in the same segment. Importantly, all revenue from these transaction fees will be rewarded to LOOKS token holders.

In facilitating the purchase of NFTs, LooksRare provides two options for users:

• Purchase of NFTs at a fixed price: Investors can select NFTs of interest on LooksRare and transact directly with the “Buy Now” option.
• Purchase of NFTs at a user-defined price: Through this option, investors can set the price at which they are willing to purchase NFTs using WETH

In addition, users can offer a price for an entire NFT collection by selecting “Create Collection Offer” and entering the desired amount of WETH. This way, all the NFT products in the collection will have the same price set by the user.

 

2. Staking

LooksRare offers two types of staking: Standard Method (rewards in the form of LOOKS and WETH) and LOOKS Compounder (WETH rewards are automatically converted into LOOKS).

 

3. YOLO

It is a game that involves combining NFTs, ETH, and LOOKS added by players on each round. At the end of the round, a single winner is randomly determined. The larger the contribution, the greater the chance of coming out on top.

 

Pros and Cons of LooksRare

Like other NFT platforms, LooksRare also has advantages and disadvantages that are important for users to know. Here are some of the pros and cons, among others:

 

1. Pros

• Low fees: LooksRare applies a platform fee of 0.5%, offering more affordable rates than OpenSea, which charges a platform fee of 2.5%.
• Platform rewards: Users can earn LOOKS tokens through staking, trading, and listing NFTs.
• Collection-wide bidding option: This approach provides advantages for large investors who wish to bid on the entire collection.
• Additional reward features: LooksRare offers features that provide extra rewards to users, such as YOLO, Community Raffles, and Gems.

 

2. Cons

• One Blockchain: LooksRare only operates on the Ethereum blockchain, which may result in higher gas fees than platforms supporting multiple blockchains. However, with the presence of LooksRare V2, the gas fee can be reduced by up to 30% compared to V1.
• Anonymity of founder: The identity of LooksRare’s founder is not disclosed, which could be a shortcoming in transparency and accountability.
• Does Not Support NFT Minting: LooksRare does not provide NFT minting features directly, requiring a third party such as Manifold. Lack of support for NFT minting can be a barrier for NFT artists and creators.
• Wash Trading Issues: There are risks associated with manipulating the price of assets on LooksRare that may lead to fraudulent activity. The practice of “wash trading” may result in a disproportionate increase in the value and popularity of NFTs on the platform.

 

LooksRare Upgrade to LooksRare V2

 

For information, in April 2023, LooksRare successfully implemented a significant update, becoming LooksRare V2. The update brought several valuable changes, including:

• LooksRare V2 is focusing more on on-chain game development in the future, showing a commitment to continuously evolving the gaming experience within its ecosystem.
• There has been a drastic reduction in LooksRare’s platform fees, which are now 0.5%, compared to the previous rate of 2%. This provides further incentive for users to engage in transactions on the platform.
• LooksRare V2 eliminates Trading Rewards; those rewards will be added to the LooksRare Treasury. This move may lead to a fairer distribution of the value generated by the platform.
• There have been adjustments to the overall tokenomics, showing efforts to increase the sustainability and value of the LooksRare ecosystem.
• As an exciting move, 50% of the platform fees will be allocated to conduct a buyback of LOOKS tokens on the crypto market. The remaining 10% will be earmarked for LooksRare Protocol Rewards, and 40% will be held in treasury. This creates a mechanism that can support the liquidity and value of the LOOKS token.

 

What is the Difference between LooksRare and OpenSea?

As an OpenSea competitor, LooksRare has several advantages that make it attractive to many users. Here are some of the differences between LooksRare and OpenSea that you need to know, namely:

 

1. Trading Fees

OpenSea is known to set a trading fee of 2.5% for all transactions, including private sales. Meanwhile, LooksRare has a trading fee of 2% for basic sales, with no fee for private sales. In April 2023, the platform also launched LooksRare V2, which cut the NFT trading fee to just 0.5%.

 

2. Trade Cost Distribution

OpenSea is known to keep as much as 100% of the trading fees for themselves. LooksRare, on the other hand, distributes the entire trading fee to the community, specifically to $LOOK token holders. The revenue from trading fees is fully funneled back to token holders, thus creating a more equitable distribution model.

 

3. Royalty Collection

LooksRare makes it easy for NFT creators and collectors with instant royalty claims. In contrast, on OpenSea, the royalty claim process takes much longer, almost a week, which makes a significant difference in user experience.

 

Conclusion

In conclusion, LooksRare is a community-based NFT marketplace built on the Ethereum blockchain. LooksRare offers a variety of interesting features in its ecosystem, including NFT trading, staking (providing two types of staking, namely Standard Method and LOOKS Compounder), and YOLO (a game that involves combining NFTs, ETH, and LOOKS by players on each round).

On the other hand, LooksRare’s strengths include low fees (as low as 0.5%), platform rewards (users can earn LOOKS tokens through staking, trading, and NFT listings, a selection of offers on the entire collection, as well as additional reward features (e.g., YOLO, Community Raffles, and Gems).

Furthermore, it is worth recalling that investing in crypto assets, including LOOKS tokens, carries risks and high volatility. Investment decisions should be based on careful research because asset prices can change quickly. It’s important to understand the potential losses that may occur later.

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