How LooksRare Works

Welcome to this post, where we are going to see how LooksRare works, the main differences between other NFT marketplaces like OpenSea and much more.

LooksRare has exploded in popularity with its launch, giving airdrops to users who had used opensea to buy and sell NFT’s, while offering better rewards and options to buy and sell NFT’s with its Marketplace, instead of using Opensea.

There may be changes at the time you are reading this, as platforms often add new features and make changes. Even so, the main functions are the same, so I recommend you, when you finish reading the article, to visit their official website.

What is LooksRare

LooksRare is the first community NFT marketplace that actively rewards traders, collectors and creators for participating.

This is who they are. Part of being community first means LooksRare rewards, empowers and gives back to the platform’s users and creators.

Earn rewards – Users who buy or sell NFTs from eligible collections earn LOOKS tokens.

Share platform commissions – 100% of trading commissions are earned by LOOKS stakers.

Creators get paid instantly – Creators receive royalty payments at the time of sale.

LooksRare has grown so fast because it is a Marketplace that shares its profits with the community, unlike opensea, where only the platform itself has all the commissions. In addition, looksrare launched an airdrop of its token for people who have been active buying and selling NFT’s on opensea, which has encouraged more users, and especially active users to use this platform.

It has different models to get profitability by using your token, LOOKS, or trading NFT’s. So many people have started to use this Marketplace instead of opensea, by receiving bonuses for buying NFT’s here.

This approach where the community also participates in the success of the platform, has led many users, and collections to start using looksrare, and decrease their daily volume on opensea.

How to get started

In order to use looksrare you will need a wallet compatible with the Ethereum network, usually metamask is used for its simplicity and being the most used. If you don’t have a wallet, you can find a guide on our page if you are new.

You can also buy the token of the platform, LOOKS, although it is not necessary to buy NFT’s, you can use this token for staking and different functions within the platform that we will see later. If you want to know how to buy LOOKS avoiding the high commissions that Uniswap has, I leave you a guide here.

The first thing to do when you enter looksrare is to connect your wallet on the top right. Click on connect wallet and confirm your wallet.

On the homepage you can find information about the Marketplace, the collections with more volume in the last 24 hours, the staking options of your token and how to list a NFT or a collection in this Marketplace.

Explore

If we go to explore, we will find a format very similar to opensea, with all the NFT’s of the Marketplace and different filters on the left. Also in the top bar, we can decide if we want to filter by newly added, highest or lowest price.

The filters on the left, you can find a great variety to find the NFT you are looking for in the most comfortable way possible. In addition to being able to filter by collections and only see NFT’s from that specific collection. You can filter by price, or with a price range, and the status of the NFT, if you can buy it now, or if it is in auction mode.

In the middle tab above, you can click on activity to see the latest NFT’s exchanges in the Marketplace. A great way to see which NFT’s are getting the most volume and the different transactions that are occurring on the Marketplace.

You will be able to see the different NFT’s with the price in Ethereum, the last purchase, and in case you are in auction mode, the last bid that NFT has received. You will also see a blue tick on the NFT’s that have been verified.

Collections

In collections you can find a list of all the collections available in looksrare. A way to find new collections faster and easier thanks to the filters and all the information you can find here.

You can find the name of the collection, the floor Price or price of the cheapest NFT of the collection, its total volume and the volume in the last 24 hours. In addition to the % that the volume has varied in the last 24 hours.

You can also filter by only verified collections and rewards, which are those collections that the platform rewards you with your token to buy and sell. If you click on any of them, you will be able to see the collection in more detail.

The operation within the collection is very similar to explore, with different filters and useful information. As the owners of that collection and the total amount of items that there are, which we could not see before.

Here you can also find the activity tab, and see the last transactions that only that collection has had, a very important aspect to see the interest there is.

In items you can use the different filters on the left to find the NFT you want. Here, we find more specific filters for each collection, such as attributes, to find more easily those NFT’s that have a specific attribute in that collection.

Buy NFT’s

To buy a NFT in looksrare, the first thing to do is to click on any NFT, either from explore or collections. Once inside, we will be able to see the NFT’s card.

Here, before buying there are some important aspects to look at and take into account. The first thing, is if we can buy it directly, where we will see a buy now button, or on the contrary, we will have to indicate an offer in make an offer and wait for the owner to accept it.

On the left side, if we go down we can find different relevant information about the NFT. Aspects such as its rarity, its attributes, the different offers it has had and the activity of the NFT. Very useful information that I recommend you to consult, especially activity to see the previous prices that the NFT has been bought and sold.

After reviewing all the information, click on make an offer or buy now, indicate the amount in the case of making an offer, click on make an offer or buy now, and confirm in your wallet. If you have enough Ethereum, and the transaction is completed, you will be the owner of that NFT. If you have made an offer, you will have to wait for the owner to accept your offer in order to own the NFT.

You can go to the top right and click on your profile menu, click on my items and you should see the purchased NFT.

Selling NFT’s

To sell a NFT, the process is the same, but in reverse. Where you must go to my items, and here put it for sale. Indicate the price in Ethereum you want to get for that NFT, or the auction mode and click on sell. Confirm in your wallet and you will have your NFT ready to sell.

You can list NFT’s you have from other marketplaces or created by you and sell them in this Marketplace without problems.

Rewards

In rewards we find the utility part of their token, LOOKS. Also from here you can see if you are eligible for the airdrop they made from their token. If you bought and sold different NFT’s on opensea, it is very likely that you can receive the Airdrop, sometimes equivalent to several thousand $ if you have used opensea a lot.

If you can’t claim the airdrop, don’t worry. You will be able to use your LOOKS in staking, and get at the time we are writing this, a 600% APR. Although it is very likely that this % will decrease over time. If you go down in rewards, you will see a tab of your stake, here simply indicate the amount you want to place, click on stake and confirm in your wallet.

The annual % you receive for staking LOOKS, comes from the commissions that the platform generates every time you buy or sell a NFT. So, the more transactions the platform has, the more rewards you will receive for staking your LOOKS. The rewards you will receive are in WETH, and you can click on compounding to use the rewards you receive to exchange the WETH for LOOKS and stake it again. This is a way to increase the annual % you receive, reinvesting the benefits you get from staking.

The other way that the platform allows us to get a return is by buying or selling NFT’s within the platform, although they must be from the collections that are eligible. You will see on the left a button with eligible collections and you can click there to see it. Every 24 hours, rewards are distributed to users who have bought and sold NFT’s from these collections. You can go to rewards and claim the amount of LOOKS you have accumulated.

Finally, you can do farming with an LP Token of WETH and LOOKS and get LOOKS as a reward with a 360% annual reward currently. This is already a more common option that we find in different platforms, and if you do not know concepts like LP Token or impermament loss, you can find a guide on our page to avoid surprises.

I hope it has helped you to know in more detail how LooksRare, one of the main marketplaces for NFT’s in Ethereum, works. Remember that if you don’t have an account with binance, you can create one just below.