Deep Dive
1. DeFi Sunset (11 July 2025)
Overview: Loopring discontinued DeFi products like Dual Investment and Portal, which relied on centralized market makers, to prioritize building permissionless Layer 2 infrastructure.
The decision reflects a shift toward fully decentralized systems, as centralized dependencies limited scalability and trustlessness. Layer 2 operations remain unaffected, with assets secured via zkRollups.
What this means: This is neutral for LRC in the short term, as it removes user-facing products but aligns with Ethereum’s decentralization ethos. Long-term, it could strengthen Loopring’s position as a pure L2 scaling solution.
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2. Wallet Closure (30 June 2025)
Overview: Loopring sunsetted its wallet interface but ensured users retain control of assets via direct smart contract interactions.
The wallet’s closure streamlined resources toward core protocol development. Users can still withdraw funds using tools like Etherscan, emphasizing self-custody principles.
What this means: This is bearish for casual users due to reduced accessibility but bullish for decentralization purists. It underscores Loopring’s commitment to minimizing centralized touchpoints.
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3. Security Guidance (18 June 2025)
Overview: Loopring published guides for interacting with smart contracts post-wallet shutdown, ensuring users can manage assets securely.
The documentation simplifies processes like withdrawals via Etherscan, mitigating risks associated with interface deprecation.
What this means: This is neutral for LRC, as it addresses transitional friction but doesn’t introduce new functionality. It highlights Loopring’s focus on user education during structural shifts.
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Conclusion
Loopring’s updates signal a strategic pivot to prioritize infrastructure scalability and decentralization over legacy products. While these changes may temporarily disrupt user experience, they align with Ethereum’s long-term vision. Will renewed focus on Layer 2 innovation attract developers despite reduced product breadth?