Turkey- Lumenswap, a decentralized exchange (DEX), is introducing DAO services on the Stellar network to allow full democratization functionality.
Lumenswap is an open-source platform that allows users to swap and trade assets on the Stellar network. The platform uses a friendly and minimal interface to offer different products, including an Order Book Market, Automated Market Maker, the Lumenswap Academy, NFTs, auction services, Lottery, and now DAO.
According to the team behind the project, the Lumenswap DAO is a client built to support standard DAO functionality for projects within the Stellar ecosystem. Through the DAO, Lumenswap seeks to provide the growing Stellar ecosystem avenue to participate in projects they care about. The Lumenswap DAO aims to help these projects execute their community governance to help them achieve complete decentralization.
All projects seeking to establish their governance on Lumenswap’s DAO client will have to send an email about the project’s information. Projects that meet Lumenswap’s criteria will be contacted and start their governance process. Among the requirements of meeting the criteria includes having a real and active community.
Notably, all projects wishing to use the Lumenswap DAO must pay 50,000 LSP. $LSP is the native token on the platform. This amount will be locked for five days. Once the DAO process is completed, all the tokens will be burned. Another notable feature of Lumenswap’s DAO is the revoke option created for when the voters disagree with the current proposal options.
Since Stellar does not support smart contracts, Lumenswap has utilized two main points in making a distributed governance on the network. First, Lumenswap considers proof of the level of authority. Participants will be required to lock a specific amount of assets, claimable after five days or at the time of sending the proposal. Secondly, Lumenswap will store its data information on another network called IPFS. The stored data hash will then be injected into the Stellar network through a managed data operation through a transaction on which the claimable balance is created.
Lumenswap was created to help bring the DeFi industry to Stellar users by harnessing the inherent features of the network, such as low fees and fast transactions. Lumenswap uses Horizon to offer the best prices for a trade based on available liquidity. In addition, Lumenswap supports multiple wallets, including Albedo, Rabet, Freighter, and private keys for better accessibility by users.