Loopring $LRC

Loopring is an innovative Decentralized Exchange (DEX) that leverages an Ethereum Layer-2 (L2) solution known as zkRollup. This robust platform stands out for its high throughput, low-cost trade settlements, and its two types of exchanges: Automated Market Maker (AMM)-based and orderbook-based.

Loopring's ZkRollup Solution

ZkRollup is a Layer-2 scaling solution used by Loopring to optimize transaction speed and cost, thus enhancing user experience on the platform. The solution works by offloading computations from the Ethereum blockchain, using it merely for data storage and verification. This mechanism allows Loopring to achieve a significantly higher throughput than underlying Ethereum’s network. Specifically, Loopring's throughput can reach up to 2,025 trades per second, a vast improvement compared to Ethereum's 15 transactions per second. Furthermore, the cost per trade settlement is astoundingly small, about $0.00015, making Loopring an affordable platform for trading.

Professional Trading on Loopring

One of the standout features of Loopring is its viability for professional traders and market makers. The platform’s impressive performance in terms of speed and cost-effectiveness enables the deployment of algorithmic strategies and other automated trading bots, an opportunity that was infeasible on previous DEX due to their slowness and high cost. By leveraging the power of Loopring 3.0, orderbook-based DEXs become commercially viable for the first time. This improvement brings a promising potential for non-custodial exchanges to outperform and eventually replace many of their centralized counterparts.

Conclusion

Loopring represents a strategic evolution in the world of decentralized exchanges. By fully utilizing the power of the Ethereum L2 solution and providing a platform for professional traders to deploy automated strategies, Loopring aims to revolutionize decentralized trading and shift the focus from centralized exchanges to non-custodial, decentralized ones.