Loopring Monthly Update — 2020/04

We hope this past month was not too difficult for our readers and their families and friends. On our side, for the team based in Shanghai, as of this past week we have stopped working remotely and returned back to the office. We are all healthy and happy, and optimistic about what’s coming up next for Loopring.

The following are some updates from April.

R&D

Loopring Protocol

Work on protocol v3.5 has almost been finished with only a small number of things left to do. Most big features planned in the release were implemented last month and this month we continued writing tests. We also did a number of additional changes:

  • Allowed exchanges to use a custom smart contract to manage the funds stored in the exchange. This makes it possible to use those locked funds in interesting and productive ways.

  • Increased the maximum number of tokens that can be used on a single exchange from 256 to 1024.

  • Simplified the protocol further by deprecating the dedicated order cancellation circuit (orders can still be canceled in many other ways) and by removing the label fields (which could be used as a custom identifier in some requests).

  • Updated the smart contracts from solidity 0.5.11 to 0.6.6.

  • Implemented Fast Withdrawals. This functionality is not built into the main protocol, it’s made possible by two new features in 3.5: Conditional Transfers and Agents. Fast Withdrawals are just one of the many features that can be added to exchanges this way.

Loopring Exchange

We launched the Loopring API. Professional traders can now use these API in their existing trading-bots to arbitrage between CEXs, DEXs. and Loopring Exchange. To speed up the adoption of our new API, we will soon launch a Market Making Competition with generous rewards in USDT. If you are interested, maybe you want to start looking into our API documentation now:

https://docs.loopring.io

In other Loopring.io developments, our deposit and withdrawal time reduced from ~40 minutes to ~20 minutes, thanks to the optimization in our prover. Note, these ~20 minutes are to enter & exit the zkRollup exchange, all actions once on the exchange — such as trading — are instantaneous.

Loopring Exchange now supports WalletConnect. Now you can use Loopring.io by scanning QR codes with your favourite WalletConnect-compatible mobile wallet app.

We adjusted the colour themes, launched a new price-chart, and added links to our newly launched API documentation, as well as our newly launched referral program and a fan-made LRC staking dApp (both of which you’ll read more about below).

New dark theme on Loopring Exchange

Loopring Wallet

We improved how wallets are created and how the daily quota is enforced. We also simplified the way guardians are added and removed after a delay for security, which can now be done in a single transaction instead of two. Besides these changes, the solidity codebase is stable and contains no additional changes.

We have chosen to employ Solidified to audit our smart wallet implementation, the work will start in a few days. We will also start our internal security audit very soon.

Many of the wallet app’s core functionalities have been developed and are working. Our mobile app engineers continued testing the mobile app and backend. There are still many outstanding issues, but we will soon have an internal beta in May.

Loopring Relayer

We launched daily account reconciliation in production which verifies that the balances among our relayer’s different sub-systems are indeed consistent (otherwise alerts will be raised for manual inspection).

Our relayer is now capable of building and submitting blocks of all sizes supported by the Loopring protocol, including the biggest and most efficient, 1024-trade settlement blocks. This marks an important milestone for Loopring: we have optimized our relayer’s performance to an extreme in terms of batch-processing layer-2 requests. Further optimization will focus on the selection of cost-efficient hardware on various could computing platforms.

As a matter of fact, we have already tried to run prover on Google Computing (GCP). Our preliminary results show that GCP’s cost and performance are both slightly better than AWS, but we need further testing and more data to support switching the prover to GCP.

Our work on internal stream computing is also near completion. On top of the system, we implemented algorithms to calculate rewards for market-making, referral, and a new program we called “orderbook mining” which will be launched in May.

We deployed the auto-shipping of compiled binaries to the UAT (testing) environment and we will enable it for our production environment in May. We have also launched a back-office system for data analysis and monitoring.

Operations

Statistics

Loopring Exchange has settled more than 840K trades since our launch two months ago, corresponding to around $14M in volume. Our realized throughput is much higher than all other Ethereum DEXes, while only paying a small fraction of the gas cost per trade. This is what zkRollup was meant for! We currently have only 1,600+ users, but the number is growing slowly but steadily.

https://duneanalytics.com/loopring

It is also worth mentioning that the relayer’s batch processing has been optimized since April 16th. Smaller settlement blocks are now much more rare. In other words, overhead costs are being amortized over a greater number of trades per block, so the cost-per-settlement has been reduced.

Blocks that are not green are account registration, password resets, deposits, and withdrawals. We’ll see their numbers go down once we have more active users.

https://duneanalytics.com/loopring

In The News

Loopring has been included on DeFi Pulse, the popular DeFi dashboard, notably displaying their total value locked (TVL) metric by each DeFi project. It now shows the total value locked in Loopring (as a protocol) has exceeded 5 million US dollars. This value is across Loopring.io, and WeDEX.

https://defipulse.com/loopring

Loopring has also been included on Token Terminal, a financial metrics website for crypto protocols. Notably, it displays the price-earnings (PE) ratio for several DeFi protocols.

https://www.tokenterminal.xyz/protocol/Loopring

Daniel’s Interviews

  • Daniel Wang, Loopring founder and CEO, was interviewed by Camila Russo of The Defiant. Podcast here, transcript here.

  • Daniel was also interviewed by DeFi Pulse for a DeFi Dive.

  • Daniel also went on Bilibili for a video streaming chat with several thousand members from our Chinese-speaking community, transcribed and translated here.

Daniel on The Defiant: transcript here, podcast here |Daniel for a DeFi Dive

Loopring Exchange launched a referral program

Our referral program on Loopring.io rewards both you and the new users you successfully referred. You will get up to 60% of all the trading fees from friends you refer.

Loopring partners with tBTC

Loopring became one of tBTC’s launch partners, which also includes Uniswap, Kyber, 1Inch, Compound, and many more. tBTC, running on the Keep Network, is considered among the more decentralized and trustless cross-chain BTC projects. We will list the TBTC/USDT trading pair on Loopring Exchange when tBTC launches in mid-May.

Analysis of Cryptocurrency Exchange Regulation

Matthew Finestone, our BD Director, wrote a detailed analysis of the cryptocurrency exchange regulatory guidance put forth by the Canadian Securities Administrators. It is very bullish for non-custodial exchange tech.

AMA with Guarda Wallet

Matthew Finestone also did an AMA with the Guarda Wallet community.

Trading Competition Recap

We released an analysis of the Loopring.io trading competition which finished March 31st. TL;DR, lots of trades settled by the protocol. Highest was 80k in one day.

Upcoming Events

LRC Staking

We launched a fan-made LRC staking dApp:

https://staking.loopring.org

The code was authored by Nolan Vanmoortel and was audited by Freeman Kong from Loopring. We welcome further code inspection, optimization, and new features. Thanks Nolan! Nolan’s version remains available here.

https://staking.loopring.org

You can use the dapp to stake LRC, claim protocol fee rewards, and withdraw LRC back to your wallet. Staking LRC will earn Loopring’s protocol fees which are 0.06% of all the aggregated trading volume on all Loopring-based exchanges. Current rewards in the fee vault for stakers equals over $40k (70% to stakers, 20% set aside for a community run DAO, 10% burnt).

An Open Challenge

We promised to provide 2 million LRC as a reward for early LRC stakers, as protocol fees may take a while to hit full force with large volume. One million LRC has already been deployed to Loopring’s fee vault (feevault.lrctoken.eth). With protocol fees attributed from Loopring Exchange and WeDEX (0.8 million LRC and 10 ETH), the fee vault now holds more than 1.8 million LRC and 10 ETH as staking reward. We encourage those who staked early enough to claim their reward ASAP.

https://etherscan.io/tokenholdings?a=0x4b89f8996892d137c3de1312d1dd4e4f4ffca171

Note that only LRC can be claimed as staking reward, not ETH or other ERC20 tokens — someone has to convert them into LRC first.

So we present this open challenge:

If someone can convert all Ether in the fee vault to LRC before 00:00 May 15th, CST, we will deposit the other 1 million LRC into the fee vault as a reward.

Take a look at the fee vault smart contract, convert the ETH into LRC via some mechanism, and be the hero who unlocks an extra 1 million LRC for stakers: https://etherscan.io/address/feevault.lrctoken.eth


Loopring is a protocol for building high-performance, non-custodial, orderbook exchanges on Ethereum using zkRollup. You can sign up for our Monthly Update, learn more at Loopring.org, or check out a live exchange at Loopring.io.

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Loopring Monthly Update — 2020/03

A busy month for the Loopring protocol, prover, and product!

During March — the first month following the launch of Loopring Exchange — we have made many optimizations on the frontend and backend of the DEX. At the same time, we have also made incredible progress in protocol upgrades, prover, and the Loopring smart wallet. Read on for more details.

R&D

Loopring Protocol

As previously announced, we will be doing another incremental protocol release which will be called protocol 3.5. Protocol 3.5 will contain some small but important changes, most notably:

  • An increase in the maximum number of accounts per DEX from 1 million to over 16 million (2^24) — previously we planned to scale it to 64 million but we now believe 16 million is a more reasonable goal for the next two or three years to come.

  • A merge of the commit and verify stages we currently have for blocks. Currently, it’s possible to first commit a block and only later prove that the block was valid. This was done because generating proofs could take a while (20–40 minutes). By allowing the proof for a block to be submitted later we could allow the onchain exchange state to be updated sooner, which has some advantages like quicker economic finality. But with our prover optimizations, even generating proofs for large blocks is now pretty fast. By removing the separate stages we can significantly simplify some parts of the protocol while also making some things more efficient.

  • Support for Conditional Transfers and agents to improve our onchain composability capabilities. These two features will allow us to extend the onchain functionality of Loopring exchanges and help bridge the gap between layer 1 and layer 2.

The most important changes have already been implemented. We are still working on some of the minor tweaks and doing all the necessary testing.

Loopring Explorer

No update on the Loopring Explorer as it remains a low priority. Instead, we have updated our Dune Analytics dashboard to show some extra interesting metrics:

https://duneanalytics.com/loopring

We are also discussing with Etherscan and other tracker sites to explore the possibility of displaying per-trade data on their websites.

Loopring Exchange

Loopring Exchange has been improving the UX and UI throughout its first month of existence. Some recent updates include: support of light and dark mode; choice of US dollars or RMB for displaying asset values; the Order and the Balance pages support filtering by trading pairs and currencies respectively; the Balance page adds asset values from on zkRollup and on Ethereum; option to hide assets with zero balance; a Total column for trade values. We continue to identify and fix many issues and make various improvements across the DEX.

Light and Dark mode on https://Loopring.io

We are in the process of fully supporting the WalletConnect protocol. When this feature is available, users can log in and use the Loopring Exchange by scanning a QR code with their mobile wallet, meaning it is no longer limited to Metamask. We expect the WalletConnect support to be available in about a week.

The focus of subsequent product optimization will focus on the price and depth chart, then the overall frontend performance. Stay tuned for a much more user-friendly exchange interface.

We also launched two more trading pairs this month, including LINK/ETH and LRC/USDT. Going forward operations-wise, we will focus on orderbook depth and liquidity.

Loopring Relayer

We have continuously optimized the relayer’s batch processing. At present, the percentage of larger blocks is gradually increasing, which is a direct manifestation of relayer optimization.

Distribution of blocks of different sizes (Source: DuneAnalytics)

We also perfected the system in various aspects, such as correctness and emergency response capabilities. One of our focuses was on the improvement of daily account reconciliation capabilities. At present, reconciliation can be performed based on daily snapshots. In future, we will continue to improve this capability to further ensure our internal account system is entirely consistent with the Merkle tree.

In terms of performance, we have added support for historical databases; the asynchronous processing capacity of matching results has also increased by 30%. We have also combed Kubernetes’ scheduling capabilities and related configurations to minimize the number of evictions. We have also optimized traffic throttling by adding an IP-based quota.

We finished the development of a new prover service. The new prover service is capable of smartly deciding whether to generate proofs locally or in the cloud; it also supports the “server” mode. The new prover service uses an upgraded version of the circuit library, which will significantly augment proving performance and reduce hardware costs. What users will soon perceive is that the deposit and withdrawal time is shortened to less than 30 minutes. We will launch the new prover service in production in just a few days.

An offline data processing platform based on Apache Beam is progressing smoothly, and it has been used to calculate our trade-competition winners. We plan to improve it to become a quasi-real-time data analysis system gradually.

We are also perfecting the relayer’s API documentation. We plan to release Chinese and English API technical documents in mid-April and introduce reward programs for market-making and referrals.

Loopring Smart Wallet

The major work in the wallet this month has been the joint debugging of frontend and backend interfaces, including unit testing and debugging of smart contracts. At present, the essential wallet functions, the guardian and contact functions, and the registration on Loopring Exchange have been code-complete. The deposit and withdrawal functions are still undergoing debugging. Next, we will add support for WalletConnect, notifications, the official guardian, and other features. We will also start UI work at the same time.

Operations

In a flash, Loopring Exchange has been live for a month. During this period, we received much appreciated recognition, support, and encouragement from the Ethereum Foundation, Ethereum and ZKP communities, and many other projects.

But most importantly, we have seen results and usage by traders! So far, Loopring has settled about 600,000 trades, which means ~20,000 trades per day. We believe Loopring Exchange will rank #1 in terms of trade settlements per day across the Ethereum DEX ecosystem. Loopring Exchange has also accumulated nearly 1,500 registered addresses! Further, the total value of deposited assets on Loopring Exchange has now reached 3.18 million US dollars. It seems to be an excellent start.

Trends of deposited assets (Source: DuneAnalytics)

The Ethereum Foundation and its founder Vitalik provided some kind words about Loopring’s technological progress in a recent BLOCKTV interview, and on the ZK podcast. He notes that zkRollup and Loopring are very promising and are likely to make a significant impact on the scalability and adoption of Ethereum.

Vitalik Buterin Talks ETH 2 and the Future of Money

Vitalik also acknowledged Loopring when he enumerated some breakthroughs in the Ethereum ecosystem between 2017 and today:

Marketing & Programs

In terms of events and activities, all offline activities worldwide were forced to be canceled due to the impact of the COVID-19 virus. That meant our planned appearance at Ethereum EDCON in Austria and other events were canceled. We joined some online and virtual events instead.

1) AMA on Bihu

On March 6th, Hoss Ma, our Chief Scientist, hosted an AMA on Bihu, sharing his experience in relayer development. Hoss claimed that Loopring’s overall DEX solution makes exchanges incapable of doing evil. Loopring Exchange is safe, easy to use, and low in cost. It can and will become a better alternative to centralized exchanges for ERC20 tokens.

More details can be found here (Chinese only):
https://bihu.com/article/1606905638

2) 1500 Honor VIP Accounts

From February 27th to March 15th, we awarded the title of “Honor VIP” to the first 1500 registered addresses on the exchange. They will enjoy the most significant one-year fee discount (the fee discount became effective on March 16th). And if you have completed at least ten trades before March 15th, you automatically became “Lifetime Honor VIP”, enjoying the lowest trading fee tier for life.

Recently, we lowered Loopring Exchange’s trading fee by 80%. Maker orders always have zero fees; for taker orders, the trading fee is between 0.06 and 0.10%, the lowest across all centralized and decentralized exchanges.

3) Trading Competition

From March 16th to March 31st, to further test the usability and performance of Loopring Exchange, we held a two-week trading competition and issued high LRC rewards. As of the 28th of this month, the total number of trades has exceeded 400,000, of which the maximum number of trades in a single day reached more than 80,000, and the maximum trade amount per account per day reached 300,000 USD. You can check our Twitter where we listed the winners daily.

4) Bug Submission Rewards

Between March 1st and April 30th, people can submit bug reports and improvement suggestions using the “Report a Bug” link on Loopring.io. For every selected feedback that we recognize as valid, we reward 500 LRC.

So far, we have received more than 120 issues from the community, and distributed 500 LRC rewards for 17 issues:

Bug submission reward winners

March was a tough month for much of the world, and the same held true for the cryptocurrency world, including Ethereum. Dramatic downturns in price led to a very congested network, and many DeFi protocols being tested to the limits. We wrote an article looking how Loopring held up during ‘Crypto Black Thursday’, and how our zkRollup DEX protocol is specifically suited for times of stress, when speed and execution guarantees in trading are paramount. Namely, when traders are paying 200 gwei to get transactions through, our industry-wide cheapest cost of settlement and instant execution can be a real life-saver.

LRC Staking

The earliest of the LRC stakers have been able to claim their protocol fee rewards for about three weeks now, as described in this article. Recall, there is a 90-day minimum stake period. Only 2 addresses have claimed and withdrawn their stake & reward, while ~400 addresses remain staked. Indeed, for those planning on remaining staked in the near term, we encourage them to wait for the 2 million LRC deposit that the Foundation will make in early May. For details on that, please also refer to the article linked just above.

In the LRC staking contract, 125 million LRC are staked, valued around $3.4 million currently. https://etherscan.io/address/stakingpool.lrctoken.eth

For LRC staking and claiming instructions, you can see here.


Loopring is a protocol for building high-performance, non-custodial, orderbook exchanges on Ethereum using zkRollup. You can sign up for our Monthly Update, learn more at Loopring.org, or check out a live exchange at Loopring.io.

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Loopring Monthly Update — 2020/02

Loopring.io is live - the first zkRollup DEX on Ethereum, zkSNARK prover optimizations result in $0.000124 total cost per trade, ETHDenver, and much more.

We apologize that this month’s report is a few days late. It’s just been a hectic end of month — in the best way possible! We hope you enjoy these updates.

R&D

Loopring Protocol

We’ve spent some time optimizing our ZKP prover with great results: the prover cost was reduced by 15x, significantly reducing our offchain costs per trade to just $0.000042 per trade, or $42 per 1,000,000 trades. We published a detailed article about these optimizations. [Recommended read for the technical folks and ZKP enthusiasts out there].

With these prover optimizations, the all-in cost to a settle a trade is now $0.000124, or just over one one-hundredth of a cent!

We plan to deploy the new prover into production within two months. The results of this optimization are a great encouragement to us. Before this, we always thought that generating zero-knowledge proofs would impose considerable cost pressure on our operation. After this optimization, it likely will not be the case anymore.

We will soon begin to optimize the code and process of another Trusted Setup to increase the protocol’s capacity in the middle of the year. We intend to support at least 64 million users per exchange in a minor upgrade — the protocol currently supports ‘only’ 1 million users per single exchange.

A big thank you once again to all those who helped us complete our initial Trusted Setup several months ago. For those who wanted to participate but didn’t get the tap on the shoulder last time, maybe expect an email mid-year :). Scroll to bottom of this page for the past and perhaps-future participants. And see here for the results/technical details of last time.

We have also deployed the smart wallet contracts to the Goerli testnet for testing our upcoming wallet app with built-in Loopring DEX.

Product

Loopring Exchange

We launched Loopring Exchange (beta1) on February 27.

https://loopring.io

This public beta has received a very warm response from the Ethereum and ZKP communities, which means so much to us. We appreciate that over 1,000 accounts signed up in the first weekend, and appreciate all the love on Twitter, Reddit, and across all the chat groups. It’s really motivated us and the highpoint of our 2.5 year history.

We had a little program that allowed the first 1,000 addresses to enter the exchange to become Lifetime Honor VIPs, enjoying the lowest trading fees on the platform forever more. Because it filled up much quicker than expected, we’ve extended it to the first 1,500, so 500 more spots (now about 400 left). More info on the Honor VIP program here. Besides the lowest fees, you also get this cool crown on your dashboard! [Maybe a low-key Etherean status symbol!?]

https://loopring.io/document/beta1

We have collected precious feedback from many users. A large percentage of users feel the trading speed is super fast, which resembles the experience of centralized exchanges. They also tell us how great it feels to trade on such an orderbook exchange without having to worry about the safety of their assets at all. This has been music to our ears, and is why we exist.

But we know there are a lot of things to improve in the user experience. For example, the withdrawal time is a bit too long and the communication of deposit processing is not very clear. Basically entering & exiting the zkRollup environment is where the UX hurdles are. Once on the exchange, users enjoy a blazing fast, enjoyable experience. Some reasons why these hurdles remain are explained in this brief thread. TL;DR: we need more users and more demand to fill up/prove batches quicker! We will continue to improve the application by releasing a major version every two weeks and pushing small versions to production daily.

If you want to list your ERC20 tokens on Loopring Exchange or suggest a project we should list, please reach us at exchange@loopring.io. For projects that push Ethereum’s ecosystem forward, we will try our best to minimize your liquidity costs. [We just need to make sure we can have some initial depth on the books for the new pairs].

Loopring Explorer

Due to the busy launch of the DEX product throughout February, the development of the Loopring Explorer (DEX Browser) temporarily slowed down.

In the meantime, you can check out related data and stats regarding Loopring Exchange on https://duneanalytics.com/loopring. This dashboard shows transaction count, deposits/withdrawals, block count, gas used, accounts created, and more. But to view volume stats, Dune Analytics can’t parse that without our library for which the Explorer is needed. We’d suggest checking the actual exchange at Loopring.io to get a sense of 24hr volumes on the pairs.

https://duneanalytics.com/loopring

Loopring Relayer

We completed the annual planning at the relay module level. The team will continuously optimize and improve the system from the three dimensions of “availability”, “ performance”, and “user acquisition”.

In February, our relayer team completed several system optimizations and successfully supported the launch of Loopring.io and WeDEX (wedex.io). The relayer now supports different transaction fees according to the user level. We also enhanced the gateway’s throttling functionality. At present, the relayer can support continuous 100 transactions per second; after the planned optimization, this throughput will be significantly improved. Recall, current max protocol throughput is 2,050 tps; relayer remains bottleneck.

We have improved the Merkle tree reconciliation function. Currently, it is a reconciliation of accounts, and subsequent verification of accounts and orders will be added. Our target is to reduce the reconciliation interval to less than one hour. Many centralized exchanges do not have reconciliation in place at all (such as the recently closed FCoin); the reconciliation in Loopring’s relayer is similar to the Alipay system, which ensures high internal and external data consistency.

We have also researched how to put our new prover in a “server mode” for continuous running to reduce proving cost. The work is still a work-in-progress but we are confident it will be done within two months. The new prover will greatly reduce the proving cost, which allows us to process user deposits and distribute user withdrawals much faster.

Loopring Smart Wallet

Loopring’s smart wallet is a mobile app designed specifically for the Chinese market to ease the onboarding of non-technical users to Ethereum and DeFi applications. The launching of Loopring Exchange verified our thought that many people in China are having trouble using Chrome + MetaMask. We believe our Smart Wallet will bridge the gap between these users and dapps, Loopring Exchange included.

We completed an internal audit and testing of the smart wallet contracts. The code has been deployed on Ethereum’s Göerli testnet. Our engineers are also working on the wallet backend and the mobile app. We are testing modules internally already, and aim to launch the first beta in May.

Operations

Around Town / In The News

Loopring’s Head of BD, Matthew Finestone, went to ETHDenver — which was incredible. With over 2,000 Ethereum enthusiasts and developers, it is difficult to describe the experience. It’s also difficult to imagine how such a passionate and talented community can be stopped in their pursuit of a better financial system, social institutions, internet, and basically everything.

Matthew gave two talks: one about Loopring protocol and our zkRollup performance stats, and one about the dxDAO (of which Loopring is a large stakeholder).

Here are some photos from the weekend.

As for the news section, honestly, we are so humbled for the attention some of the best curators, commentators, and leaders in the Ethereum space have provided of our launch and advancement, it is too numerous to list here. Just check out your favourite Ethereum news sources, especially from past week!

LRC Staking

The amount of staked LRC has exceeded 120 million LRC. Among them, our team members staked more than 29.5 million, the Loopring Foundation staked more than 46.5 million, and LRC token holders combined staked 44.8 million. We have decided to stake the subsequent 220 million LRC held by the Foundation every month as they are unlocked. More context on that can be found in this article.

To reward people for staking (especially before protocol fees pick up with increased volume), we will deposit 2 million LRC as a reward for all participants around May 1st. Of course, we will deposit these LRC into Loopring’s protocol Fee Vault. You can always keep track of the LRC balance in the vault address. These are the rewards that are paid out to stakers.

https://etherscan.io/address/feevault.lrctoken.eth

We strive to provide a convenient UI for LRC staking on Loopring Exchange before May 1. If this feature gets delayed, you may want to learn to interact with the staking address using Etherscan’s interface. It only takes a few minutes and two transactions with the smart contracts. Staking instructions can be found in the middle of this article.

As the first 90 day period since staking began is coming up soon, we will soon release a post instructing how to claim rewards. Again, it will be a simple transaction to the smart contracts on Etherscan.


Loopring is a protocol for building high-performance, non-custodial, orderbook exchanges on Ethereum using zkRollup. You can sign up for our Monthly Update, learn more at Loopring.org, or check out a live exchange at Loopring.io.

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Loopring Monthly Update — 2020/01

Welcome to the first Loopring Monthly Update! Of course, if this isn’t your first time reading a Loopring update, you know we’ve been doing Bi-Weekly updates for years. But with protocol maturity, we are slowing down to half-speed on updates. This is because Loopring v3 is in a working, steady state, and while we will never stop R&D and improving, our efforts will now tilt towards making scalable non-custodial exchanges on Ethereum ubiquitous. This involves pouring more energy into commercialization and productization, into the relayer (backend), and into DEX product (frontend). We are turning on the boosters in 2020! To stay up to date, please subscribe to receive this in your inbox at the end of each month.

A few notes about Loopring, the brand.

As we mention above and in our 2020 Roadmap, it’s time for us to start looking at productizing the protocol + technical progress. This is a theme we saw play out in the past with other protocols in our peer group — moving up the stack, to show what’s possible with the protocol, to bring value to the ecosystem & token, and in some cases to have a revenue stream alongside the free & open source protocol.

As such, we’ve previously announced that we (the Loopring team) will operate a few products built on top & alongside the Loopring protocol. We called them Hebaomeaning ‘purse’ in ancient Chinese. Hebao was going to be our DEX product name, and the name of our smart contract wallet — meant to onboard Chinese users onto Ethereum, DeFi, and Loopring exchanges.

The community has had a pretty outspoken and well-reasoned response that they’d like to see these products bear the Loopring brand, and keep it all under one umbrella. So, we have listened: the Hebao DEX and the Hebao Wallet will instead be called the Loopring DEX and the Loopring Smart Wallet.

Similarly, while the above 2 products pertain to front-end, user-facing applications, there is one more super important product/service, this time on the back-end: the Relayer. The Relayer is the back-end ‘handler’ of all the off-chain duties for a Loopring protocol DEX: hosting & matching orders, Merkle Tree updating, generating zkSNARK proofs, interacting with the smart contracts, and even achieving composability with Layer 1 Ethereum. A Relayer is a complex system in the context of a zkRollup exchange, and a large part of our team has been solely focused on building our Relayer implementation for a long time. We have called this, the Lightcone Relayer. In line with bringing everything under the Loopring name, we will instead call it the Loopring Relayer.

Of course, any exchange is perfectly able to build their own Relayer implementation to support their Loopring-based exchange, but we will also be offering ours as a ‘Relayer-as-a-Service’. This will be offered to would-be exchange owners, incumbent exchange businesses (centralized or decentralized), and other enterprises that require it. We firmly believe that this backend service + Loopring protocol can and will power some of the most important exchanges in the cryptocurrency world over the coming decades.

On with the show…

User Products

Loopring DEX

We have completed the design of the Loopring DEX — an exchange we will operate on the Loopring protocol. With the security & high performance power of zkRollups, we intend for this exchange to outcompete and win market share from the incumbent centralized orderbook exchanges. The design for the web app has been ongoing since the end of last year, and our current work is mainly testing and iteration. Our goal is to release the Loopring DEX in early March. The exchange will live at loopring.io.

Loopring Browser

We’ve also been developing the Loopring DEX browser. Through this tool, you can easily see various data and statistics from all exchanges built across the Loopring protocol. It decodes the batched transactions into their granular parts, and acts as an explorer for our zkRollup DEX protocol. On this browser, we will also integrate LRC Staking (which at the moment can only be done via interacting with the smart contracts directly), Withdrawal mode (which is what guarantees user assets with Merkle inclusion proofs in even the worst case scenarios), and other functions in the future. While initially planned to launch at same time as the Loopring DEX, due to the impact of the Spring Festival holiday and the corona virus, we decided to lower the priority of this project and go live with the exchange itself first.

Loopring Smart Wallet

DeFiPulse shows that the total amount of value locked in DeFi has tripled in 2019, with $875 million USD currently locked (in ETH terms, it increased by ~50% in 2019, with 3.2m ETH currently locked). We believe that 2020 will see even more of a DeFi explosion, with value locked and traded well into the several billions of dollars worth.

However, DeFi is still only experienced and enjoyed by early enthusiasts. Many products are Web-based only, and Metamask, the largest wallet on the Web, is still too difficult for ordinary users to learn and use. The general problems can be compounded due to limited accessibility for Chinese users. Loopring Smart Wallet, our smart contract wallet, is trying to solve this difficulty with a super simple and secure wallet directly aimed at on-boarding Chinese users onto Ethereum and DeFi. Naturally, Loopring DEXes will be the first DeFi product to be integrated into Loopring Wallet, but several saving, lending/borrowing and other DeFi dapps will be integrated as well.

The preliminary draft of the Loopring Wallet design has been completed. We established the initial code for the app based on the previous UpWallet code. The front-end and back-end interface definitions have also been completed. The front-end and back-end code are being developed in parallel, and we hope to launch the beta version at the end of March.

Business Products & Services

Loopring Relayer

In December 2019, we worked with WeDEX (a Shenzhen-based team building a DEX on Loopring) to service their exchange with our Relayer. With this initial integration, we settled the first real zkRollup transactions on Ethereum mainnet — close to 1 million of them!

Duneanalytics.com/loopring

This was a beta, meant primarily for testing the protocol & relayer in the wild and under heavy stress. We shared all the relevant data and stats in a deep dive post and several tweets.

The Loopring Relayer settled a total of 966,094 trades, and processed 1,307 deposits and 272 withdrawal requests. The average on-chain settlement cost per transaction is 5,000 gas, or 0.0000177 ETH. Based on Ethereum’s price of $140 at the time, the on-chain cost of each transaction settlement was $0.0025. This fee is one-tenth or one-hundredth of the cost of other decentralized exchanges currently. The off-chain cost (proof generation) was also $0.0025, so a total $0.005 settlement cost per trade. There are some near term optimizations that will cut this by 50%, and be $0.0025 total.

See all the data in this Recap

The WeDEX live testing (and the great reaction from the community) has inspired our team a lot. We have optimized the system based on the results and improved some functions, including:

  • launching WebSocket to improve the user experience;

  • launching a fee module to support tiered pricing (based on past 30d volume and LRC held);

  • improved the matching engine logic to make the experience consistent with centralized exchanges;

  • launching multiple optimizations related to zero-knowledge proofs to reduce overall costs (such as batching proof verifications);

  • completed a new version of the API (in beta) for market makers to access.

During the WeDEX tests, due to bugs and intended mis-operations (testing the disobeying of protocol rules), there were 3 ‘shutdowns’, with an average recovery time of 3 hours, and with all data being fully restored. Based on this, the team has strengthened the emergency operations capacity, and improved the LRC staking mechanism and release process. We will write a post about this in a follow-up. (Note, no matter if the above went ‘well’ or not, user assets would be safe, always, as long as Ethereum exists.)

Operations

The past month and a bit has honestly been our most exciting from an operations and awareness point of view. For that, we’d really love to thank the amazing Ethereum, ZKP, and of course Loopring communities (and many more). We feel as though 2.5 years of hard R&D work has begun to pay off with our deployment of the first zkRollup DEX protocol on Ethereum. And all this when ZKP scaling and Rollups have really entered the spotlight to drive Eth1.x forward. The positive feedback has really made us extra-motivated.

What We Did / Wrote

  • We integrated with Chainlink so DEX owners can stake LRC for economic security guarantees using faithful LRC/ETH and LRC/USD price feeds. We wrote all about it here,

  • Our Chief Architect, Brecht Devos, also had a video fireside chat with the Chainlink team.

  • We released a deep recap analysis of the stats & on-chain/off-chain costs from settling zkRollup trades on mainnet.

  • We wrote about what is required to keep composability between Ethereum layer 1 and layer 2.

  • Loopring was hosted by r/Ethfinance for an amazing AMA. What a strong community! Daniel, Brecht, and Matthew participated in the answering.

  • We built a Metamask plugin that allows for signing zkRollup transactions for exchanges built on Loopring in a really nice way. (Source)

Around Town / In The News

Who knew increasing throughput / reducing costs while maintaining Ethereum-level security guarantees would get people so excited! Some of our favourite newsletters, blogs, Twitter people and writers included us in their material this month :).

  • Some really good and informative pieces on Rollups were written that included Loopring’s ZK implementation: Ben’s Rollup Roundup, and Chris’s Scaling Decentralized Exchanges.

  • DEX aggregators Totle and ParaSwap listed LRC on their dapps. That rounds out the DEX aggregators where you can get LRC in the most convenient and cost-effective 1-click way.

  • Dune Analytics decoded our v3 smart contracts, making them the first ever Dashboard glimpse into the realm of ZK batched and proven transactions on Ethereum.

  • Dolomite, a DEX built on Loopring (v2, not v3 just yet), launched their limit order margin trading functionality, as well as listed several more trading pairs. Dolomite is now the most liquid orderbook DEX where you can trade LRC/ETH.

  • Loopring was invited to the “Creating the Times” award ceremony held by Jinse Finance in Beijing, and won the recognition as best technical service organization.

  • Loopring participated in the DeFi meetup held in Sydney, Australia, where CMO Jay Zhou presented zkRollup scaling and sat on the panel with great peers.

Jay at DeFi Sydney

LRC Staking

There are now over 48 million LRC that have been staked in the Loopring staking contract, representing almost 5% of circulating LRC. This came from a total of 178 wallet addresses, and began 6 weeks ago. More info in this thread. For a little bit longer, stakers can still enjoy the benefits of the ‘golden staking window’ — before the Loopring team stakes themselves. Those who want to participate should follow the instructions in this post.

Loopring stakers can currently check their staked LRC balances (and time left and rewards) by querying this contract with their address.

https://etherscan.io/address/stakingpool.lrctoken.eth#readContract


Thanks for reading if you’ve made it this far! We’ll see you next month. And if you’ll be at ETHDenver, we’ll hopefully see you there.


Loopring is a protocol for building high-performance, non-custodial, orderbook-based exchanges on Ethereum. You can sign up for our Monthly Update, learn more at Loopring.org, or check out:

Twitter ⭑ Reddit ⭑ Telegram ⭑ GitHub ⭑ Discord ⭑ YouTube ⭑ LinkedIn

Loopring Bi-Weekly Update — 12/22/2019

The first DEX built on top of Loopring 3.0, WeDEX, is now live on Ethereum mainnet. On the first day of their beta launch, WeDEX successfully settled more than 20K trades, with Ethereum-level security guarantees — and this cost 1.4 ETH in gas total, at a gas price of ~5.2 gwei. To our knowledge, this is the first working DEX on Ethereum mainnet scaled with zkRollup!

Research & Development

Protocol

We created the first Loopring 3.0 DEX for WeDEX which is now live at:

0x7d3d221a8d8abdd868e8e88811ffaf033e68e108

Contract 0x7d3d221a8d8abdd868e8e88811ffaf033e68e108 is the first live DEX leveraging zkRollup for scalability on Ethereum mainnet. Certainly, it is the first one enforcing on-chain data availability.

Through this contract, you can find transactions that are the proven *batches* submitted to Ethereum. Within them, they contain the actual DEX activities: deposits, withdrawals, and trade settlements. Our upcoming open source DEX Browser is needed to discern the actual granular activity.

The stats & capabilities are exciting:

In the near future, we plan to help WeDEX complete the full lifecycle testing, including testing the Shutdown mode (operators proactively shut down the DEX) and Withdrawal mode (operators violate some protocol rules). In all cases, Loopring protocol ensures DEX users are able to withdraw their rightful assets.

On WeDEX, there are currently about 100 users invited for this first round of beta testing, which will last for one week. For this beta, the Shenzhen-based team is focused on serving Chinese language users, but will open their English language side at some point in January. Feel free to follow them on Twitter to stay tuned.

Products

We have also finished the smart contract implementation for Loopring’s smart contract wallet called “Hebao”, 荷包, which means purse in ancient Chinese. Hebao will be a standalone smart contract wallet, with very tight Loopring v3 integration for user onboarding. Next week we will start unit testing the contract. Our goal is to complete unit testing by the end of February. You can read more about Hebao in our recently published 2020 roadmap.

Lightcone Relayer

Lightcone is now serving WeDEX on Ethereum mainnet — running the exchange’s off-chain operations. We’ll continue to improve Lightcone’s reliability while WeDEX fixes UI issues.

Recall: a relayer is the party that handles all the off-chain & ZKP generation for a Loopring v3 DEX. Lightcone is the relayer implementation that Loopring has built, and is now capable of offering this Relay-as-a-Service for DEX owners.

We’ve also done more rounds of stress testing (30 TPS for 10 hours) and fixed several small issues found during the testing. So far the relayer is stable enough to continuously provide settlement service to WeDEX. We have also improved service monitoring and adjusted notification rules.

We formulated a specific R&D plan for the relayer team for the first half of 2020. Most development for its next version should be done before July 2020. You can read more about it in the roadmap.

Operations & Marketing

  • 12/3/2019 — Loopring and Guarda Wallet started the bounty campaign to help educate people about Loopring v3, DEX scaling and zkRollup.

  • 12/4/2019 — Loopring writes about ‘The Ultimate Non-Custodial Test’ and explains exactly what happens in the worst-case scenario: withdrawal mode.

  • 12/5/2019 — We released Loopring 3.0-beta 4 and its deployment and configuration on Ethereum mainnet! The Lightcone relayer has been integrated with 3.0-beta 4 to provide services for WeDEX.

  • 12/8/2019 — Loopring CMO, Jay Zhou, attended DAOfest in Shanghai and spoke about the governance of DEX protocols, and the dxDAO.

  • 12/9/2019 — LRC opened its Golden Staking Window. If you hold LRC and do not plan to sell within 90 days, you could consider taking advantage of this window (and LRC staking in general) to earn Loopring’s protocol fees.

  • 12/12/2019 — Loopring CMO, Jay Zhou, attended the 2019 China Fintech Shanghai Summit.

  • 12/14/2019 — Loopring CTO, Steve Guo, attended blockchain meetup in Shanghai, sharing the newest development of zkRollup.

  • 12/14/2019 — Loopring CMO, Jay Zhou, attended Startup Leadership meetup in Shanghai, and talked about the future trends of blockchain technology.

  • 12/19/2019 — We had a team reunion in Shanghai, since most of the team was in one place for the first time in a while!


Beginning January 2020, we’ll switch from bi-weekly to monthly updates. We believe that since protocol v3 is deployed, and because the relayer and DEX products (Hebao) are closed source it makes more sense. Also, in the process of productization, Loopring-based DEXes/Dapps (WeDEX, Dolomite, etc.,) will release information of their own, lessening our need for the same update frequency.


Loopring is a protocol for building high-performance, non-custodial, orderbook-based exchanges on Ethereum. You can sign up for our Monthly Update, learn more at Loopring.org, or check out:

Twitter ⭑ Reddit ⭑ Telegram ⭑ GitHub ⭑ Discord ⭑ YouTube ⭑ LinkedIn

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