Your phone will get a push alert so you can see the new deals on offer, and the purchase process takes place completely in the handset. Many of the offers are voucher based, and the app will work with Microsoft Wallet to store the voucher on your phone until needed.
It also uses the geo-location services in your handset to present you with local offers in your area - particularly useful if you are travelling for work or on holiday.
From the App Directory listing:
Want to save 50%-90% at restaurants, spas, gyms, and more? Download our Windows Phone 8 app to access LivingSocial's deals. Each day, we'll introduce you to a new, cool thing to do in your city -- and give you a HUGE discount while we're at it.
You can download LivingSocial for free via the AAWP App Directory.