Kriptoks

Loopring is a protocol that allows for the creation of high-performance, decentralized exchanges (DEXes) on Ethereum. It utilizes smart contracts and zero-knowledge proof circuits to construct a zero-knowledge rollup (ZK-Rollup) structure, which allows for increased throughput and reduced settlement costs without sacrificing Ethereum-level security. The protocol's native token, LRC, can be staked to generate protocol fees and used as a bond for DEXes to follow protocol-defined behavior.

The Loopring protocol was founded by software engineer Daniel Wang in 2017. The protocol allows for multiple exchanges to mix and match orders, handle off-chain order matching, and conduct on-chain transaction clearing and payments. The goal of Loopring is to provide a decentralized and automated trade execution system for traders, participants, and institutions, and to enable trades across various crypto exchanges while reducing counterparty risk and trading costs.

In August 2017, Loopring conducted an initial coin offering (ICO) for LRC and raised 120,000 ETH, worth $45 million at the time. The total supply of LRC is capped at 1.375 billion tokens. In January 2021, Loopring introduced a new economic structure for its LRC tokens, with 80% of protocol fees going to liquidity providers and automated market makers, 10% going to insurers, and 10% going to Loopring's decentralized autonomous organization.

Loopring is not a decentralized exchange itself, but rather a protocol that supports trading in a decentralized environment through ring sharing and order matching. It aggregates all orders transmitted to its network and fills them using order books from multiple exchanges, providing access to cross-blockchain and cross-exchange liquidity. The protocol is blockchain-agnostic, meaning it can integrate with any platform that uses smart contracts.

The LRC token is primarily used to gain access to the Loopring protocol. It is required for operating a DEX using Loopring, with a minimum of 250,000 LRC needed to use the protocol's on-chain data proofs and a minimum of 1 million LRC needed to operate a DEX without using Loopring's data proofs. Even without operating an exchange, LRC holders can benefit from a proof of stake (PoS) mechanism, where they can earn protocol fees by staking their tokens. The architecture of the Loopring protocol allows for trades at a fraction of the cost of Ethereum, making it a cost-effective option for developers building decentralized apps.