What is Loopring (LRC)?

Deep Dive

1. Technology & Architecture

Loopring employs zkRollups, a Layer 2 scaling solution that batches thousands of transactions off-chain and submits a single cryptographic proof (zkSNARK) to Ethereum. This reduces gas fees by ~1,000x and increases throughput while maintaining decentralization. Unlike general-purpose rollups, Loopring is optimized for trading and payments, supporting orderbook and AMM swaps (Loopring Technology Overview).

2. Tokenomics & Governance

The LRC token has three primary roles:
- Staking: Users stake LRC to earn a share of protocol fees (70% of fees distributed to stakers).
- Governance: LRC holders vote on DAO proposals, such as liquidity incentives and fee structures (DAO Voting).
- Fee Discounts: Exchanges can stake LRC to reduce protocol fees for traders.

3. Ecosystem Shifts

In 2025, Loopring sunsetted its wallet interface and DeFi products (e.g., Dual Investment) to prioritize permissionless Layer 2 infrastructure. Users retain ownership of assets via smart contracts, interacting directly with Etherscan post-wallet closure (Loopring Announcement). The protocol remains operational, emphasizing scalability and decentralization.

Conclusion

Loopring is a specialized zkRollup protocol redefining decentralized exchange efficiency, with LRC anchoring its economic and governance systems. As it phases out centralized dependencies, how will its focus on core infrastructure impact adoption in a competitive Layer 2 landscape?