Loopring (LRC), founded in 2017, is a DeFi protocol built to enable fast and cheap trading and payments on the Ethereum blockchain. The protocol was launched to address the challenges of scalability and high transaction costs on Ethereum, especially on DEXs. Loopring taps into zkRollups, a second-layer scaling solution, which enables it to boast much faster transaction speeds and lower fees without sacrificing the security and decentralization that come with Ethereum. The first version of Loopring was released in August 2019, followed by several upgrades that introduced zkRollup technology for better performance and usability.
LRC, the native token of Loopring, is used mainly for staking, governance, and incentivizing liquidity provision. Over time, Loopring has evolved to support not just trading but also payments and Layer-2 applications, making it a versatile solution for Ethereum’s scalability issues.
Loopring founder Daniel Wang is a former software engineer and blockchain enthusiast. The platform was developed to create a protocol capable of efficiently conducting trades without sacrificing either security or decentralization. With prior experience in software development and engineering, Wang brings invaluable expertise to the design and implementation of Loopring’s zkRollup-based infrastructure.
Under his leadership, Loopring went on to become a leader in Layer-2 scaling, pushing the boundaries of what’s possible on Ethereum. His goal was to empower users with a fast, affordable, and secure alternative to traditional Ethereum transactions.
Loopring is built on Ethereum and uses zkRollups (zero-knowledge rollups), a Layer-2 scaling solution that aggregates many transactions off-chain and executes them as a single batch on-chain, reducing gas fees and increasing throughput with Ethereum-level security. Loopring runs a Layer-2 decentralized exchange (DEX) where users can trade assets with very minimal fees and almost instant settlement. Users can send and receive Ethereum-based assets using Loopring’s Layer-2 network for fees as low as a fraction of a cent.
zkRollups employ zero-knowledge proofs that ensure the validity and security of off-chain transactions before posting them to the Ethereum mainnet. The holders of the LRC token are allowed to stake their tokens in order to receive rewards and contribute to the security and liquidity of the network. Loopring achieves a throughput of 2,000-3,000 transactions per second (TPS), far outpacing Ethereum’s base capacity of 15-30 TPS, making it highly suitable for scalable DeFi applications.
Loopring has formed strategic partnerships that have boosted its ecosystem and usability greatly. Loopring’s integration with GameStop powers their NFT marketplace, allowing low-cost, high-speed minting and trading of non-fungible tokens on Layer-2. This partnership has brought the zkRollup technology of Loopring into the mainstream and validated its potential for large-scale commercial applications.
As a Layer-2 solution, Loopring fully and seamlessly integrates with Ethereum wallets, DApps, and protocols, extending its usability further. This makes Loopring a scalable, inexpensive expansion of Ethereum’s powerful ecosystem. The integration with Chainlink ensures that the prices on Loopring DEX are always up-to-date via real-time price feeds. All this enhances security and, therefore, trust in a manner critical to staying ahead of the competition in decentralized trading.
Loopring has constantly pursued innovation in Layer-2 technology, bringing groundbreaking updates. The collaboration with GameStop solidifies Loopring’s position as an innovator in the space of NFTs using zkRollups to drive low-cost, efficient transactions of NFTs. Layer-2 wallets are wallets that enable users to hold, trade, and manage Ethereum-based assets with very negligible fees, democratizing access to DeFi and blockchain technology. Active liquidity incentives have successfully attracted traders and liquidity providers to the Loopring DEX, boosting trading volumes and platform engagement.
Compatibility is certain through the cooperation of Loopring with other DeFi projects, giving users more perspectives. Refinements around its zkRollup technology continually improve scalability and efficiency, reinforcing its position as the leading Layer-2 solution and future-proofing the platform. All these collaborations and innovations underpin Loopring’s commitment toward scalability, affordability, and ultimately, the greater adoption of Ethereum Layer-2 solutions.
As of December 20, 2024, the native token of Loopring, LRC, changes hands at approximately $0.21, up 1.8% in the last 24 hours. The market capitalization of the token stands at $263 million, making it one of the biggest Layer-2 protocols.
Loopring reached its all-time high (ATH) of $3.82 on November 10, 2021, and its all-time low (ATL) of $0.019 on December 18, 2019. The NFT marketplace integration with GameStop has significantly boosted Loopring’s visibility and utility. Growing demand for Layer-2 solutions has driven interest in Loopring’s zkRollup technology. Regular protocol upgrades and new features contribute to sustained community interest and token value.
Loopring has positioned itself as one of the leading Layer-2 scaling solutions, enabling Ethereum to scale in a non-invasively secure manner with its innovative technology called zkRollup. Loopring is critical in unlocking Ethereum’s widespread usability for both DeFi and NFT use cases by enabling fast and inexpensive trading and payments. Key partnerships, such as with GameStop, and continuous improvements on zkRollups place Loopring in an excellent position to drive further adoption and innovation in the blockchain ecosystem.
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FAQs
Q1. What is Loopring used for?
- A: Loopring is a Layer-2 scaling protocol that enables fast, low-cost trading, payments, and DeFi applications on Ethereum.
Q2. What is zkRollup technology?
- A: zkRollups are a second-layer scaling solution that bundle transactions off-chain and then validate them using zero-knowledge proofs for scalability without sacrificing security.
Q3. Who does Loopring partner with?
- A: It partnered with GameStop for the company’s NFT marketplace and integrated key DeFi protocols and Ethereum wallets.
Q4. What is LRC used for?
- A: LRC is Loopring’s native token and is utilized for staking, governance, and rewarding liquidity providers.