How to Stake LooksRare (for Beginners)
What’s so great about LooksRare, you ask? By actively buying, selling, and trading NFTs on the platform, you can earn $LOOKS (you’ll see us calling it LooksRare as well), a stakeable cryptocurrency with heaps of benefits for its users.
If you’re curious about how to stake LooksRare, I’ve got the answer.
To stake LooksRare ($LOOKS), you need to:
- Navigate to the LooksRare Rewards dashboard
- Choose between LOOKS Compounder and Standard Staking
- Connect your cryptocurrency wallet to the staking method
- Input the number of LOOKS you wish to stake
- Approve the transaction both on the dashboard and in your wallet
Not too bad, huh?
What is LooksRare?
LooksRare is a game-changer in the NFT community. It’s an NFT marketplace based on the Ethereum network, with monetary incentives for users who buy and sell assets on their marketplace.
By monetary incentives, I mean free LOOKS tokens for participation on the platform and staking for LOOKS holders… basically, la crème de la crème for NFT traders. Earning passive income from buying, selling, trading, or collecting NFTs has never been so easy.
One of the cruxes of OpenSea has been its central management. Project managers have reported weeks to months of verification for their beloved collections, and security lies within a central point. Not the version of web3 we’re thinking about.
LooksRare seeks to change that. Through its decentralized and anonymous voting system, the platform is grounded in decentralized management.
Despite its success, the community hasn’t been completely sold on LooksRare. OpenSea still holds most of the market share for Ethereum NFT marketplaces… so what’s stopping people from switching over?
For one, big names like CryptoPunks and co. have yet to join the platform. Also, “wash trading” has become a growing strain for the platform, as users trade NFTs back and forth between their wallets exclusively for the rewards, then use OpenSea for actual purchases and sales.
It’s surprising, too, since LooksRare has a lower trading fee than its competitor—albeit, a 0.5% difference isn’t particularly eye-catching.
Which blockchains does LooksRare support?
LooksRare only supports one blockchain: Ethereum. Unlike its competitors, it does not support layer 2 blockchains.
This may be a downside to the platform compared to rivals like OpenSea and X2Y2, but it’s better to focus on one thing and get it right before diving into several blockchains. Also, the Ethereum NFT market is the largest, though Solana is creeping up the ladder.
What are LooksRare points?
LooksRare points are the basis of the platform’s reward program. Every day, they are converted into LOOKS tokens, which can be collected, sold, or staked.
To earn LooksRare points, you must list NFTs with the “listing rewards” icon (the top 25 daily collections). The higher the trading volume of the collection, the more points you’ll earn.
There are a couple more requirements, so check it out if you’d like to start earning LOOKS.
How do you get a LOOKS token?
There are two ways to get LOOKS: either buy it through Uniswap or earn it through LooksRare points.
I’d suggest earning it through LooksRare points, as other cryptocurrencies have higher annual percent returns. It’s also the whole point of the platform, to reward its users for their participation.
How to stake LooksRare
So now we get onto the question you want an answer to… how to stake LooksRare?
Thankfully, it’s not too complex. All you have to do is:
- Navigate to the LooksRare Rewards dashboard
- Choose between LOOKS Compounder and Standard Staking
- Connect your cryptocurrency wallet to the staking method
- Input the number of LOOKS you wish to stake
- Approve the transaction both on the dashboard and in your wallet
Pretty easy, right?
I bet you have more questions than how to stake LooksRare. For example, what’s the difference between LOOKS Compounder and Standard Staking?
The main difference stems from the name itself: compounding. In Standard Staking, your rewards are earned in LOOKS and WETH, and they do not automatically compound (your earnings are not reinvested into the staked cryptocurrency pool).
But with LOOKS Compounder, your earnings in LOOKS and WETH are automatically compounded every 6-10 minutes. This is why you see a higher APY for this method on the staking page.
Are you a math geek? Then, here’s the compounding formula for you:
Compounder APY = (1 + WETH APY) \* (1 + LOOKS APR) - 1I’d highly suggest you stick to the LOOKS Compound staking method as it’s a better return for your investment.
How do I claim my LOOKS rewards?
Another essential part of the “how to stake LooksRare” question is how I claim my LOOKS rewards?
To claim your daily LOOKS tokens, follow these steps:
- Navigate to the LooksRare Rewards page
- Click “Listing & Trading” in the options
- Connect your cryptocurrency wallet
- Click “Collect”
Beware: you can only claim rewards daily from 09:00 AM to 11:00 AM (UTC).
How much can you earn on LooksRare?
There are two ways to check how much you can earn staking on LooksRare: either use Staking Reward’s website to check how much you will make in the future, or check the LooksRare rewards page to see the total APR and APY of each staking method.
The more precise answer will come from Staking Reward’s website, where you can input the amount you have staked, the term of your staked funds, and how much you expect the price of LOOKS to fluctuate.
But if you want a quick glance, the LooksRare rewards page is the winner.
Summary
LooksRare is the first community-led and community-driven Ethereum-based NFT platform. Make no mistake—LooksRare paved the way for other decentralized NFT marketplaces (I’m looking at you, X2Y2).
Remember, how to stake LooksRare requires 5 simple steps:
- Navigate to the LooksRare Rewards dashboard
- Choose between LOOKS Compounder and Standard Staking
- Connect your cryptocurrency wallet to the staking method
- Input the number of LOOKS you wish to stake
- Approve the transaction both on the dashboard and in your wallet
And that’s all there is to it, folks!
