Hi Lumenswap Community!
The LSP auction is here! If you want to remind yourself why we are launching our native token, and what our goals are for Lumenswap and enabling DeFi functionality on the Stellar network, take a look at our LSP tokenomics post.
Read on to understand all about the $LSP auction and how you can participate in it.

Community First

We have had no venture capital investment or a private token sale. This is a community-first auction, entirely transparent, for the Lumenswap ecosystem. No private equity lockups, no vested interests.

Auction Type

We have decided to use an English auction for the sale of our asset, $LSP. We believe this is the fairest form of the auction for the Lumenswap community and will maximize meritocratic participation in the ecosystem.
In order to ensure fairness, participants will have a predetermined amount of time to place their best bids.
Once the auction has concluded, LSP will be distributed to all successful participants, starting with the highest bidder. From then on, the next highest bidder is selected in sequence, until the auction pot is depleted.
This auction consists of two main parameters:
1. Base price
This price is set by the auctioneer and bidders must be willing to pay values equal to or greater than this price.
2. Auction time
Applicants can send their bids during this period.
Winner selection and asset distribution
After the auction time is over and all the bids are received, the auctioneer ( Stellar network) distributes the assets from the highest bid to the lowest.
To better understand how the auction works, let’s look at a few cases.
Suppose Alice, Bob, and George want to participate in a Ford car auction where five Ford Model X cars are to be sold.
The first case

According to the bids, Alice will receive 2 cars at a price of $3, Bob will receive 3 cars at a price of $2.5, and George will not receive a car because we have ran out of them!
The second case
Now, let’s consider another scenario.

This time, George now will receive 2 cars at a price of $3, Alice will receive 2 cars at a price of $3, and Bob will receive 1 car at a price of $2.5.
As this example shows, if demand is less than or equal to supply, one can win the auction with the base price.
The third case

According to the bids, Bob will receive 4 cars for $3 and 1 car goes to either Alice or George, but to which one?
Since they’ve both offered the same price, we use “time” to prioritize participants. The person who sent their offer earlier will have the priority.

Auction rules

There is no KYC
Due to the nature of the blockchain and the specific mission of Lumenswap, which is decentralization, we allow anyone to participate in the auction without enforcing any KYC.
The base price of the asset is 0.002 XLM
Your bid must be equal to or greater than 0.002 XLM; otherwise, you will have no chance of winning this auction.
There is no limit on the number of bids you can send
You can bid as many times as you want, for example, you can send a bid for 0.002 XLM and another bid for 0.004 XLM.
There is no upper limit on the price you can bid
You can bid as huge as you want, 0.002 XLM or 10 XLM.
You have until (2021-07-29 14:00 UTC)to send your bid
Starting from the moment you read the article until the due date, you have time to send your bid.
The price is not the same for everyone
Everyone receives assets according to the price that they bid on, which means that the asset price will not be the same for everyone.
Keep an eye on the bid chart
The key to your success in this auction is to pay attention to the status of bids constantly.
Do not be surprised if you do not receive LSP after sending a bid
Until the end of the auction (2021–07–29 14:00 UTC), no one will receive LSP assets. After the auction is over, the network will start distributing assets to the winners.
Unsold LSPs will be burned.
From the 120 million LSPs that are available for sale, any remaining amount that has no demand will be sent to an address with zero weight. They’ll be completely out of circulation and will be burned.

How to participate in the auction

To create a great experience for the auction, we designed and implemented the Lumenswap auction section, which will help you review the latest auction status. You’ll see lots of details, including the number and the size of the bids.
https://app.lumenswap.io/auction

Let’s talk about the different sections of this page.
1. The latest bid price
It shows the last sent bid. Of course, the last does not mean the highest.
2. Total amount of bids
The total amount of purchase bids shown in both LSP and XLM.
3. Total number of bids
Shows the total number of sent bids to buy LSP.
4. Volume/Price chart
This is the most important part of this section. When you click on a price in the chart, you can see the total bids offered.
How can this chart help you participate in and win auctions?
As you know, 120 million LSPs are going to be sold at the auction. For example, when the chart shows a price of 0.004 XLM to 140 million, it means in order to win the auction, your bid needs to be above 0.004 XLM.
Note: that this chart may change based on demand and changes in the number of bids and their prices. So, keep an eye on this chart until the final seconds of the auction.
5. Latest bids
In the Recent Bids tab, you can see the last 200 bids that participants have sent.
6. My bids
In the My Bids tab, you can view or delete the bids you have sent.
7. Send bid button
To send a bid, first click on the send bid button and then enter the amount and price in the module. You have to enter the value to LSP and the price to XLM.

After sending the information and clicking on the Send button, you have to sign it using your wallet, and then you will receive a confirmation message.
Note: All the information above works with bids above the base price, i.e. 0.002 XLM. So, if an bid is placed below this price, it will not be included and analyzed in the statistics we just discussed
Note: All of the operations in the LSP auction take place on the Stellar network. This means that the auction will be completely decentralized and transparent.
Note: We have built the auction section on Horizon, which limits each person to 3,600 requests per hour. To avoid limitations, try not to refresh the page too many times and do not send unnecessary requests to the network.

Send a bid on SDEXs

You do not have to use Lumenswap to participate in the auction. Although using the special section will make your job a lot easier, we don’t want to restrict our users. You can send your bid in the LSP/XLM asset pair on any platform you like, such as StellarTerm or LOBSTR, or StellarX.
How to place a bid on StellarTerm
To get started, first go to the StellarTerm site and connect your wallet, then watch the video below.

How to place a bid on LOBSTR
If you do not have Lob Store installed in your phone, first go to the LOBSTR website and install the Android or iOS version, then create a new account and watch the video below.

How to place a bid on StellarX
If you do not have an account in StellarX, first log on to their website and create an account. Then, enter this URL and then watch the video below.

How to place a bid in Lumenswap
To get started, first go to the Lumenswap portal auction and connect your wallet, then watch the video below.

Thank you for reading this article.