Ethereum has been the most well-known Layer-1 blockchain alongside Bitcoin. However, as the Ethereum ecosystem thrives, Ethereum has shown its technical weaknesses in transaction speed and transaction throughput, leading to slow transaction finality and incredibly high gas prices.
Ethereum came up with multiple Layer 2 scaling solutions, such as Rollups, State Channels, Sidechains and Plasma, in an attempt to ameliorate these problems. Loopring is the protocol that provides one of those solutions.
In this article, I will give you the detailed information about Loopring and its token, LRC.
- What is Loopring?
- What is LRC?
- How does Loopring work?
- Detailed information about LRC Token
- LRC Price Today
- LRC Key Metrics
- LRC Token Allocation
- LRC Token Sale
- LRC Token Release Schedule
- LRC Token Use Cases
- How to get LRC Token
- How to buy LRC token on Coin98 Exchange
- How to store LRC Token on Coin98 Wallet
- Loopring Roadmap
- Team, Investors and Partners
- Is Loopring (LRC) a good investment?
What is Loopring?
Loopring is an Ethereum Layer-2 scaling protocol using zkRollup (Zero-knowledge Rollup), a modular protocol for building DEXs on multiple blockchains.
To further clarify, Zero-knowledge Rollup is one of the two Rollups alongside Optimistic Rollup, which are created to increase the scalability of Ethereum. The core characteristics of Rollups is that they execute transactions off-chain (Layer 2) but keep the transaction data on-chain(Layer 1), maintaining the high security from the Layer 1 blockchain (Ethereum) and at the same time producing up to 100x scalability improvements.
Loopring also possesses two native products: Exchange and Payment, which aim to develop fast and cheap, non-custodial AMMs, orderbook exchanges, combining with payment applications on Ethereum.
What is LRC?
LRC is an ERC-20 token and an indispensable part of Loopring. LRC is used to incentivize rewarding activities for the Loopring ecosystem, have a say in how the protocol develops, and eventually encourage the transition into Ethereum Layer 2.
Every transfer and swap transaction of a DEX through Loopring will charge Layer 2 transaction fees, which will be splitted as 80% for relayers (and affiliates if needed) who keep the zkRollup running, and 20% for the protocol fees.
Protocol fees are paid on a monthly basis in LRC and/or ETH, to 3 types of participants with an 80/10/10 proportion:
- 80% to liquidity providers (LPs) on Loopring orderbooks and AMM.
- 10% to insurers who deposit LRC into the insurance fund.
- 10% to Loopring DAO where the community decides how these funds should be spent: buyback and burn, impermanent loss protection, further liquidity incentives, grants, etc.
LRC also follows a burn rate model. Wallets and ring-miners who earn fees by fulfilling roles on the Loopring protocol (details below) will have a portion of their fees converted into LRC (if not LRC already) and burned.
The burn rate associated with different ERC-20 tokens will vary accordingly. As LRC features the lowest cost, paying fees in LRC is the preferable method.
An operator must lock up at least 250,000 LRC in order to run a decentralized exchange on Loopring that uses the protocol’s on-chain data availability. Operating a DEX without this feature requires 1 million LRC to be staked. More LRC can be staked to reduce the protocol fees.
LRx is the generalized token notation, whereas LRC is the Loopring token on Ethereum, LRQ on Qtum, and LRN on NEO, etc. Other LRx types will be introduced in the future as Loopring is deployed on other blockchains.
How does Loopring work?
Loopring is mainly a zkRollup Exchange and Payment Protocol that provides DEXs enormous efficiency and scalability improvements.
Loopring produces a complex approach for DEXs by disassembling the primary components of a traditional exchange and combining a set of smart contracts with decentralized factors. The roles in the network include Wallets, Liquidity-sharing Consortium Blockchains, Relays, Ring-Miners, and Asset Tokenization Services, with the Order Ring on top of them.
Order Ring: Conventionally, every order is just an exchange between 2 tokens. Loopring’s Order Ring uses up to 16 orders instead of a single trading pair, dramatically increasing the liquidity and opening up price improvement potential. It creates a loop that allows each order to exchange their desired tokens without requiring an opposing order for its pair.
Wallets: A common wallet service or interface that gives users access to their tokens and a way to send orders to the Loopring network.
Liquidity-sharing Consortium Blockchains/Relay-mesh: A network that when nodes run Loopring relay software, they are able to join and share liquidity among other relays. In other words, Relay-mesh can be regarded as the center of orders and liquidity, which happens in a Consortium Blockchain.
Relays: Relays are nodes that receive orders from wallets or the relay-mesh, maintain public order books and trade history, and (optionally) send orders to other relays and/or relay-mesh nodes.
Ring Miners: Relays who produce order-rings by gathering disparate orders. Relays can decide whether to use the Ring-Mining feature or not.
Asset Tokenization Services (ATS): A bridge between assets that cannot be directly traded on Loopring, which can be centralized services. ATS enables the trading of ERC20 tokens with physical assets as well as assets on other blockchains.
Detailed information about LRC Token
LRC Price Today
Currently, you can track the price of LRC on Coin98 Markets: https://markets.coin98.com/currencies/loopring
Coin98 Markets is a website that helps users to get updates of the real-time prices, as well as view the detailed information of a Token Metric from any project. More specifically, you can access the home page or the community page of a project, or filter the coins/tokens by Market Cap, Trading Volume, etc.
LRC Key Metrics
- Name: Loopring.
- Ticker: LRC.
- Token standard: ERC-20.
- Token type: Utility, governance.
- Max supply: 1,374,513,896 LRC.
- Circulating Supply: 1,245,991,469 LRC.
- Contract address: 0xbbbbca6a901c926f240b89eacb641d8aec7aeafd
LRC Token Allocation
LRC Token Sale
The Initial Coin Offering (ICO) took place in August 2017 and raised $45 million. However, due to China’s extensive regulations, Loopring had to refund the money to all the participants afterwards. The rest was used for the development of the protocol.
LRC Token Release Schedule
At the moment, all LRC Token has been released with the team currently holding 127,881,971 LRC.
LRC Token Use Cases
LRC has 5 main use cases:
- Fees for Ring Miners/Relayers.
- To participate in DAO governance activities and proposals.
- Burned in LRC Burn Rate.
- Lock up to run a DEX on Loopring.
- DEX operators can stake to reduce fees on that DEX.
How to get LRC Token
You can get LRC through multiple CEXs/DEXs:
How to buy LRC token on Coin98 Exchange
Step 1: Connect Coin98 Extension Wallet.
Step 2: Select Uniswap.
Step 3: Choose the trading pair:
- Search LRC.
- If the result does not come up, you can paste the contract of LRC into the search box: 0xdd974d5c2e2928dea5f71b9825b8b646686bd200
Step 4: Adjust the amount you want to swap.
Step 5: Adjust the gas fee, then click Approve.
How to store LRC Token on Coin98 Wallet
You can store LRC token on Coin98 Wallet with these steps:
Step 1: Open Coin98 Wallet & click Receive on the home screen.
Step 2: Search LRC Token.
Step 3: Click on the correct result, copy the wallet address and send LRC to this address.
Loopring v1 release: December 2017.
First LRN airdrop: September 2018. 1.5 million LRN was airdropped to 758 NEO addresses bound to 892 Ethereum addresses
Third LRN airdrop: November 2018. A total of 2.1 million LRN was airdropped to 854 NEO addresses, corresponding to 1039 Ethereum addresses.
Loopring 2.0 release: December 2018. An upgrade was introduced to allow more efficient ring settlement, new fee model, and additional ways to create orders.
Loopring 3.0 release: December 2019. The second major upgrade brought the first Zero-knowledge Rollup DEX protocol to the Ethereum mainnet.
Team, Investors and Partners
- Daniel Wang: CEO and Co-founder.
- Jay Zhou: Co-founder & CMO.
- Johnston Chen: COO.
Loopring is invested by multiple Capitals such as Amplifi Capital, ChainFunder, Hash Capital, Kosmos Capital,...
Loopring has partnered with various protocols: Bitfwd, TokenMarket, Infinitio, Chainlink, 03 Wallet,...
Is Loopring (LRC) a good investment?
I hope that with the aforementioned information, you have understood what Loopring is and how Loopring operates. This article should give you a deep insight into the project, so there is no financial advice. You should Do Your Own Research before conducting any investment, and be responsible for your own fund. However, Coin98 will provide some notable points of the project to give you the best overview to make your own decisions:
- Loopring is one of the pioneers in developing zk-Rollup, a scaling solution for Ethereum. As Ethereum is expanding and requiring more scalability, Loopring is getting more and more attention.
- Loopring has also developed their own Layer 2 protocols, which are Loopring Exchange and Loopring Wallet. Loopring’s scheme is to implement a payment solution that in the future may replace physical banks.
- With a high ambition, Loopring has constantly released updates and new products such as: Smart Wallet 2.0, AMM 2.0, and EthPort, which are expected to further improve users’ experience.
- Regardless of the market trends, Loopring follows a specific plan that envisions a crypto world for years to come, which indicates that Loopring’s success should not be evaluated within days or months.
To conclude, Loopring is a modular protocol for DEXs to build on. Through innovative cryptographic techniques such as zkRollup and the Order Ring method, Loopring provides improvements to both efficiency and liquidity.
Loopring maintains a 1,000 times faster throughput than that on Ethereum for 1/100th of the cost, promising to open up Ethereum’s scalability and potential for DEXs on Layer 3 to bloom. Loopring has also chosen its own path of developing a native DEX and wallet, so it is worth keeping an eye on the project’s progress.
You’ve been through an article about Loopring and the LRC token. I hope it has helped you in gaining more useful insight of this project and understanding its potential.
If you want to know further about Loopring (LRC), please feel free to leave a comment below and join Coin98 Community for further discussions!