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 focus on permissionless Layer 2 infrastructure.
This move involved deprecating legacy smart contracts and redirecting development resources toward fully decentralized exchange mechanisms. The Layer 2 protocol remains operational, ensuring asset security and transaction efficiency.
What this means:
This is bullish for LRC because it sharpens Loopring’s focus on trustless systems, aligning with Ethereum’s decentralization ethos. However, it risks short-term user attrition from discontinued services. (Source)
2. Multi-Network Smart Wallet (30 May 2024)
Overview: The Loopring Smart Wallet became deployable across multiple networks (e.g., Taiko zkEVM), enabling users to manage assets on Ethereum L2 and compatible chains from a single interface.
The update introduced modular architecture for cross-chain interactions, reducing gas fees by 54x compared to Ethereum L1. It also added NFT wearables and cloud backup for social recovery.
What this means:
This is neutral for LRC as it expands utility but faces competition from wallets like MetaMask. Enhanced cross-chain functionality could attract developers building multi-network dApps. (Source)
3. Account Abstraction Wallet (4 March 2024)
Overview: Loopring integrated ERC-4337 standards, allowing users to pay gas fees in any token and enabling batch transactions without seed phrases.
The upgrade simplified onboarding for non-crypto natives by abstracting wallet creation into social logins or biometrics, reducing friction for mainstream adoption.
What this means:
This is bullish for LRC because it lowers barriers to Ethereum L2 usage, potentially increasing transaction volume and protocol fee revenue. (Source)
Conclusion
Loopring’s codebase evolution prioritizes decentralization and user experience, phasing out centralized dependencies while enhancing cross-chain interoperability. Will its bet on account abstraction catalyze mass adoption, or will scalability trade-offs limit growth?