Trading NFTs on LooksRare: The Complete Guide

LooksRare is a decentralized NFT marketplace that rewards users with its native token, LOOKS. It’s v2 update dramatically reduced user fees. However, LooksRare has been under the microscope for wash trading activity. 

Written by: Anatol Antonovici   |  Updated October 10, 2023

Reviewed by: Mike Martin

Fact checked by: Ryan Grace

looksrare

LooksRare is a marketplace where you can trade non-fungible tokens (NFTs). In this guide, we’ll show you how to buy, sell and mint NFTs as well as earn passive income on the LooksRare NFT trading platform.

Table of Contents

🍒 tasty takeaways

  • LooksRare is a decentralized NFT marketplace launched in 2022, aiming to be a community-first platform

  • LooksRare launched its version 2 in April 2023, reducing trading fees from 2% to 0.5% and offering a native token, LOOKS, for staking and earning rewards.

  • Non-fungible tokens (NFTs) are unique blockchain-based digital assets that can represent digital and physical assets. Unlike fungible tokens (e.g., ETH), each NFT is distinct and not interchangeable.

  • Participants can earn passive income on LooksRare by staking the LOOKS token.

  • In order to trade NFTs on LooksRare, you’ll need to connect a self-custody crypto wallet.

LooksRare Summary

Details
What is LooksRare? Decentralized NFT marketplace. Launched in 2022, it aimed to be the Uniswap of NFTs.
NFTs Blockchain-based digital assets representing unique items. Not interchangeable.
Trading Fees Initially 2%. Reduced to 0.5% in April 2023.
Rewards 100% of trading fees distributed to NFT creators and LOOKS stakers.
LOOKS Token Native token of LooksRare. Can be staked for rewards.
Competitors OpenSea, Blur. LooksRare offers 100% fee distribution to users.
Reputation Concern Rumors of wash trading; led to price drop of LOOKS token.

What Are NFTs?

A non-fungible token (NFT) is a blockchain-based digital asset that represents something unique. NFTs, which are hosted on a blockchain with the smart contract feature, can represent a digital or physical asset. Think about collectibles, artworks, luxury goods, music tracks, game items, metaverse assets, etc.

Each NFT has a unique value and cannot be replaced with another token. Therefore, NFTs use a different token standard (ERC721) compared to fungible tokens and coins (ERC20). For example, we wouldn’t mind if one ETH were replaced with another ETH in our digital wallet – they are fungible, which means they are interchangeable. NFTs are NOT interchangeable.

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Why Are NFTs Important?

NFTs can support a whole new range of use cases that revolve around asset ownership, intellectual property (IP), and efficient trading of non-liquid assets like real estate and fine art. By leveraging blockchain technology, these tokens are indivisible, immutable (set in stone), indestructible, and verifiable.

The NFT market boomed in 2021. Despite the hype and eventual price corrections, NFTs have established a lasting presence in the digital world.

nft volume by chain

In March 2021, digital artist Beeple, whose real name is Mike Winkelmann, famously sold an NFT representing his artwork called “everydays: the first 5000 days” for a whopping $69 million.

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What Is LooksRare?

LooksRare is a decentralized application NFT marketplace where traders and collectors can buy and sell NFTs. The platform was launched at the beginning of 2022 during the NFT market boom, offering over $1.3 billion in rewards to its users.

The goal of LooksRare is to be the Uniswap of NFTs, positioning itself as a community-driven marketplace and leveraging the decentralized finance (DeFi) trend. It encourages NFT traders to use the platform through generous rewards.  

LooksRare aimed to dethrone OpenSea, the largest NFT marketplace by trading volume. However, this seems to be a distant goal.

The platform used to charge 2% on NFT trades versus OpenSea’s 2.5% commission. In April 2023, LooksRare launched version two (v2) of its platform, cutting NFT trade fees from 2% to 0.5%.

How Does LooksRare Work?

LooksRare is an NFT marketplace built on the Ethereum blockchain. It lets users mint, buy, and sell Ethereum-based NFTs.

The main selling point of this platform is that it rewards creators and NFT traders. The ecosystem is fueled by its native token, LOOKS, which is an ERC-20 token with a fluctuating value.

Live: LOOKS Chart

LOOKS Tokenomics

The platform distributes 100% of trading fees to NFT creators and LOOKS stakers. All rewards are paid in LOOKS, which can be traded on secondary markets like Uniswap.

The token’s maximum supply is capped at 1 billion, and the share of the circulating supply is about 94% as of mid-October 2023.

About three-quarters of the tokens have been allocated for rewards. 12% of the total supply has been put aside for a massive airdrop program to incentivize NFT traders who traded 3+ ETH on OpenSea between June and December 2021. To claim their LOOKS, users had to list at least one NFT on LooksRare.

Earning Rewards on LooksRare

The trading fees and rewards are paid in LOOKS and Wrapped Ethereum (WETH), with LOOKS stakers being eligible to accrue rewards on a daily basis. Read how wrapped ether works here. With the launch of v2, WETH was replaced with ETH for most rewards.

The LooksRare platform offers two staking options:

  • Standard staking – this is an active form of staking that allows users to earn LOOKS and WETH with a total annual percentage return (APR) of 11.85% as of mid-October 2023.

  • LOOKS Compounder – the compounder mechanism automatically converts users’ WETH earnings into LOOKS and applies it to staking, increasing the APR figure. As of today, this method generates an annual percentage yield (APY) of 12.29%.

You can start staking by visiting the LooksRare Rewards page. You can withdraw earnings at any time.

The Trading Rewards incentive was discontinued on October, 1, 2023. Listing rewards has also been discontinued.

LooksRare Features

The updated version of LooksRare introduced new features. For example, bulk buys enable users to buy multiple NFTs in one transaction. Also, fixed price listings can be set in USD instead of ETH.

LooksRare also launched YOLO and Raffle games to let users earn more rewards in NFTs, LOOKS, and ETH.

LooksRare vs Other NFT Marketplaces

LooksRare is different from OpenSea, Blur, and other NFT marketplaces

To begin with, LooksRare is promoting itself as a community-first NFT platform, distributing 100% of the fees to users. Another distinct aspect is that it has its own token.

Here is a brief comparison between LooksRare and its competitors:

How to Trade NFTs on LooksRare?

LooksRare has an intuitive interface that makes it easy to buy and sell NFTs even for beginners.

To use LooksRare, you have to connect your self-custody crypto wallet (like the one’s tastycrypto offers!). The platform also supports MetaMask, WalletConnect, and Coinbase Wallets.

Buying NFTs on LooksRare

To buy NFTs,  click on the “Collections” tab at the top of the page. You will see an extensive list of NFT collections, such as the popular Bored Ape Yacht Club. You can also use the ‘Search’ section and create a watchlist.

If you like any particular NFT, you can click on it to explore more details and purchase it by clicking “Buy Now.”