Loopring

Loopring is a DeFi platform that is utilizing zk rollup for layer-2 scaling solutions to enable high performing, DEX, to be built on top of it.

What is Loopring?

  • Loopring scaling technology enables transactions on the DEX to be gathered into a group (bundling) first instead of directly settling each and every individual transaction that is normally done on today’s DEX platform. 
  • The Loopring protocol creates a foundation for DEX platform to have a low transaction fee and fast transaction speed on the Ethereum network.
  • The number of transactions Loopring network has claimed to be able to be processed -using this scaling solution- is up to 2,000 trades per second on their DEX platform.
  • Every bundle of the transaction being recorded off-chain is then sent to the main Ethereum network using zero-knowledge proof technology to ensure that the transactions submitted are genuine and valid. 

Key Metrics

TickerLRC
Token NameLoopring
Token Type/ProtocolERC20/Ethereum
Total Token Supply1,374,513,896
Current Circulating Supply See Coinmarketcap
Market CapitalisationSee Coinmarketcap
Token Creation DateOct 2017
Can it be mined?No

Who is behind Loopring? 

Loopring was founded by Daniel Wang, a former software engineer at Google. Wang is currently acting as the CEO of the company. 

Loopring has successfully raised 120,000 ETH on its ICO in 2017, but due to regulatory concern in China, the project needs to refund around 80% of the fund raised. In may 2018, Loopring was then reported to be acquired by G2H2 Capital.  

What is the purpose of Loopring? 

LRC token is the main asset to access Loopring technology. A DEX operator who would like to utilize the Loopring network needs to stake at least 250,000 LRC tokens. Besides that, anyone could also stake LRC token to receive a portion of the trading fee generated on the DEX. 70% of the fees will be distributed to LRC token stakers, 20% will goes to Loopring DAO, and the remaining 10% will be burned to create a deflationary token system. 

Insights:

The Loopring network is considered to have relatively low awareness on the market. The technology is promising, and has a strong potential to change the way decentralized exchange operates. With the deflationary token model and increasing in DEX usage, LRC token might spike in value in the future. However, the challenges are also high considering that the project has to compete with centralized exchanges and other DEX platforms. 

  • The Loopring project was started back in 2017 with a rough beginning due to the fact that they need to return the investment received through ICO. Since then the development progress was really slow until the recent DeFi trend makes Loopring technology desirable and the project has achieved a lot of important milestones. Based on that, the DeFi trend plays an important role to the LRC token value, however, as we know, a trend might continue or discontinue. 
  • Even though it has already been discussed in many forums, the real Ethereum network scaling solutions that have been deployed and implemented well, are still not many. Loopring is one of the projects that has been successfully implemented and uses the technology to create a product (DEX) that actually works.    
  • Considering the growing adoption of Ethereum network, and more and more promising DApps built on the Ethereum platform with astronomical user growth, Loopring is in a really good position.  

Risks:

  • LRC token price was going nowhere for two consecutive years (Jul 2018 – Jul 2020), with a slow development progress and low trading volume, investors need to consider the risk of project execution challenges in regards to that fact. 
  • Zk rollup is an interesting and considered to be highly potential technology, however, despite the fact that it’s already been well studied theoretically, the implementation on a real product might bring undiscovered flaws. 
  • Zk rollup is open source and considered a public good, hence, not only Loopring can develop using this technology. If the platform proves to be successful, there might be many other projects that also develop similar solutions with the similar technological approach. 

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Disclaimer:
All investments are speculative and involve substantial risk and uncertainty. Investors should understand the nature of digital assets including the terms of return and the risk of assets. We encourage investors to fully understand the assets and the risk associated with them prior to making any investment.  

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