Loopring Monthly Update — 2020/07

This past month we primarily focused on the contract upgrades and audit of Loopring Smart Wallet 1.1, and the development and testing of Loopring Protocol 3.6. Related research and development are progressing smoothly. Our focus in August is the security audit of protocol 3.6 and the optimization of the smart contract mobile wallet app.

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R&D

Loopring Protocol

We have completed the development and testing of the core code of Loopring Protocol 3.6. There are still some details that need to be improved and optimized. We believe that we can be ready to conduct a third party security audit in about 1 to 2 weeks. At the same time, we have also started a more formal internal audit process: CEO Daniel Wang, CTO Steve Guo, and Chief Scientist Hoss Ma will lead five other engineers to form an eight-person audit team to conduct detailed audits of the various code modules of the protocol. We estimate that it will take 4 to 6 weeks to complete the internal audit. We also contacted some external audit firms to seek plans and quotes, and we will determine one to engage with in August. As a refresher on some of the v3.6 functionality, see last month’s update.

Loopring Exchange

We launched the referral rewards page on Loopring Exchange. When the amount rewarded from referring friends and receiving rebates on your own trades exceeds $5 USD, rewards will be distributed regularly at the end of each month. If it does not exceed that amount, it rolls over to next month. See here for more on the referral program.

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https://loopring.io/account/referral-rewards

Six weeks ago we launched liquidity mining on the LRC/USDT and ETH/USDT trading pairs as a first trial, and we had a great response. Liquidity mining campaigns — incentivizing users to place resting limit orders on certain pairs’ orderbook — has improved order depth and spread tightness. We will continue to operate it as a feature of the exchange. After the first phase of the trial, we opened this up to more trading pairs. Currently, you can liquidity mine and be rewarded on four trading pairs: LRC/USDT, USDT/DAI, renBTC/USDT and BZRX/ETH. We also released two open source trading bots that can plug in to Loopring Exchange: hummingbot and vnpy. We welcome everyone to come and try mining: add liquidity to Ethereum’s zkRollup DEX and get rewarded.

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Liquidity Mining Leaderboard

New pairs listed this past month: renBTC/USDT, BZRX/ETH, LEND/ETH, LEND/USDT, BTU/USDT, GRID/ETH.

Loopring Wallet

After Solidified audited our first version of the wallet contract code last month, we believed that the contract design could be greatly improved, so we immediately re-developed version 1.1. In the new version, we mainly reconstructed the meta-transaction processing module and greatly simplified the design of the business logic module. Just today, Solidified has also completed the audit of version 1.1. No security vulnerabilities were found in the new version. We have shared the audit report on GitHub .

Our backend and app engineers are also docking the new version of the contract. After the docking is completed, the contract and app will be updated at the same time.

Wallet App adds functions such as LRC staking, liquidity mining, transaction flow display, WalletConnect and small asset hiding. At the same time, we are focusing on sorting out the UX interactions of some key processes: such as creating a wallet, asset homepage, Ethereum transfer and Layer 2 account transfer interaction, and the approval process of the guardian. We hired a new designer this month. We believe this will speed up the development and iteration of the wallet, and hope that it will bring you an incredible user experience when launched in beta around September.

At the beginning of the month, we invited the first small batch of community users to try out our first version of the wallet app. We have collected useful feedback and will adapt some good ideas in the new version.

Loopring Relayer

We have launched a few advanced order functions on our relayer, which can now support taker-only and maker-only (‘post-only’) orders. This function is particularly important for market makers, and it is currently available through the market-making API; it will be implemented on the frontend next month and will be provided to ordinary users.

At the same time, we launched the parallel version of our Merkle Tree. After the update, the performance has been improved by almost 10 times, and it can be accelerated by increasing the number of cpu cores. Subsequent clustering will be implemented to achieve horizontal expansion. The coding of the message centre/notifications is completed and it is expected to launch next month. The circuit service based on Google Cloud Platform has been developed and can be launched after some tuning. It is expected to reduce the cost while improving the performance of circuit generation of proofs.

Operations

The Loopring Pay UI bounty completed, with two amazing finalists. You can see their work below. Congrats to Federico, winner, and Nicole, runner up.

Loopring 🧞‍♂️ @loopringorg
Ethereum zkRollup payments have gotten a lot prettier since last month! You can now get into the fast lane via bounty contender:
loopring-pay-ui.netlify.app Note, UI is fan-made, open source, but unaudited, so use with small amounts. Which works out since it doesn't cost gas :)

Matthew Finestone | 3body.eth @finestonematt

The Loopring Pay UI bounty is complete and it couldn't have come at a better time, as gas fees for token transfers are pricing out small txs. https://t.co/gLS1A9webS We had many great contenders, 3 submissions, and 2 finalists. https://t.co/Qcf9wsjf2F https://t.co/tykstgYSFQ https://t.co/QgCPPQSxfl

Excitingly, this winning UI and app has been gifted to the DXdao, and will be hosted permanently by the DXdao as a scalable payment application, Rails. It will live at rails.eth on ENS + IPFS, and should be deployed in the near future. Users will be able to send ETH and ERC20 transfers to anyone else on the Loopring zkRollup, including between Loopring.io and Rails users.

Linq, a digital asset liquidity provider built a Hummingbot connector for Loopring Exchange. This significantly reduces the barrier to entry for MMs, engineers, and trader enthusiasts to deploy a trading bot and strategy on Loopring.io. Anyone can now quickly spin up a bot, and deploy liquidity to the exchange. The below thread explains why this may meaningfully increase participation on orderbook DEXs. You can see the bot repo here. Linq and Loopring will continue to collaborate around such tools, and liquidity provision on Loopring Exchange.

Speaking of liquidity, during the month we released two new liquidity mining campaigns with great third party sponsors, REN and bZx. You can now automatically be rewarded for providing liquidity (limit orders) to renBTC/USDT, and BZRX/ETH. Both campaigns reward $2k each to users over 30 days. That is $2k in renBTC, and $2k in vBZRX. Rewards accrue hourly, are visible on a dashboard, and are paid out at the end of the 30 days.

So far, these programs have worked really well to engage the community and increase liquidity on the respective pairs. See below that there was over $100k worth of renBTC deposited on to the Loopring zkRollup after their campaign commenced, and spreads and volume remained attractive.

We also renewed the liquidity mining campaigns for LRC/USDT and created a new one for DAI/USDT. The reward pool is $3k for each of these two pairs, earned hourly over 30 days. In other words, $4.17 to be earned every hour for 1 month on each of these pairs. Read this thread for more info on the current liquidity mining campaigns running, and the ones that were paid out.

The number of accounts on Loopring.io exceeded 4000, and are now above 4200, and the value of assets deposited reached over $12 million USD.

https://duneanalytics.com/loopring

And we still have tons of capacity left, with 98.4% of Loopring’s zkRollup blocks being less than half full (<512 tx’s). Lots more scalability to squeeze.

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Source

Loopring participated in the DEX Trader Survey, led by dex.blue. This was a comprehensive survey aimed at getting to the heart of DEX trader behaviour. Results will be summarized shortly. Insightful respondents will win prizes from the 6 sponsors.

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Loopring listed two LEND pairs, LEND/USDT, LEND/ETH, which have quite good depth on the venue.

Loopring listed a GRID/ETH trading pair, with a few extra exciting details. First, new registrants who onboard with code GRID receive 10 GRID in their Loopring layer 2 account. (Cap of 50 code usages). Can also register via this link: https://loopring.io/invite/grid. More excitingly, GridPlus will be looking to integrate GRID redemptions via Loopring Pay so that customers who purchase GRID on the exchange don’t need to incur further costs withdrawing to the base chain when they wish to redeem for energy or Lattice1.

We supported interest earning tokens from Aave (aTokens) and Compound (cTokens) for the first time. Now you can keep productive assets on the Loopring zkRollup and transfer them for free. Soon we may list trading pairs with these interest earning tokens.

Loopring 🧞‍♂️ @loopringorg
In one small step for Loopring, one giant leap for layer 2 <> layer 1 composability,
Loopring.io now supports @compoundfinance cTokens and @AaveAave aTokens for zkRollup transfers (Loopring Pay). Send cDAI, aUSDC and more without paying gas fees 💸

In The News and On The Ground

A thorough and thoughtful report on ZK scaling from EthWorks, which looks at this leading scaling technology on Ethereum today. EthWorks analyzes Loopring among the 3 live ZK scaling solutions.

The Bitcoin Podcast where Loopring Business Director Matthew discussed Loopring and zkRollup scaling.

DeFi Dad with another great tutorial on how to escape high gas trading with Loopring.

Vitalik continued to educate and evangelize how zkRollups like Loopring can help alleviate the layer 1 congestion today.

According to TokenInsight, in the first half of 2020, the total volume on decentralized exchanges (DEX) exceeded 6 billion USD, with an increase of 66% in the second quarter vs the first quarter. DEX volume is exploding, and while Loopring still represents a small share of the volume, the number of transactions on the Loopring Exchange ranks second only to Uniswap. This is owed to the high TPS of Loopring, and how it can support many (small value) trades since gas fees are not an issue. DEXs are closing the volume gap vs CEXs, and Loopring is helping bridge the performance gap as well.

Source 1, 2

The Ethereum network (happy fifth birthday!) continues to gain popularity and usage at a rapid pace, and thus is extremely congested. Gas prices have gotten incredibly expensive, even to perform some basic contract interactions, including DEX trades, as seen in the analysis below. This is what Loopring helps alleviate, with trading fees that are mere hundredths or thousandths of its layer 1 peers.

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Source

Over in Shanghai, the team participated in many community and media events.

Loopring founder and CEO, Daniel Wang, participated in the BLOCKCAST community telegram group live broadcast. The AMA summary can be viewed in this article. Daniel also participated in an interview with CoinDesk in Chinese. He said the number of DEX users is more important than the depth of transactions.

Steve Guo, Loopring CTO, participated in 3 live broadcasts: ZT CLUB DeFi series; Bitpie AMA; 2020 Fourth Industrial Revolution Cloud DevCon. Steve shared how Loopring helps build a better moat for the Ethereum ecosystem and the application of zkRollup in Loopring Protocol. Jay Zhou, Loopring COO, also participated in 3 live broadcasts: pTokens community; BKEX; and live interview with OKEx CEO Jay Hao. Yu Hongyu, the senior architect of Loopring, was invited in the MXC community, sharing the theme of “The DeFi boom continues, and how Loopring overcomes obstacles”.

Loopring participated in the “Embracing Industry New Wave-2020 Hangzhou Blockchain International Week” hosted by Babbitt. Daniel attended the 2020 Hangzhou Blockchain International Week Panel, talking about the future of DeFi and CeFi, and how Loopring can empower DeFi with Binance and DeBank, and others. Firebird Finance interviewed Daniel to discuss the challenges and directions of blockchain. Daniel also participate in the “DeFi Emergence” seminar held by Babbitt and gave a speech on “Global DeFi Development Path and Loopring Protocol”.

Loopring and Chainlink held a meetup on smart contracts in Hangzhou to share Loopring’s positioning, products and plan for protocol 3.6. Steve Guo took part in the blockchain industry technology seminar held in Shanghai.

Loopring established the Loopring Vietnam Community. We will provide technical and financial support for the community, and educate and popularize DeFi products for local users. We believe that Vietnam will be the next important market for the development of cryptocurrency applications.

LRC

There is now 163 million LRC staked. Stakers receive their share of protocol fees paid out to the feeVault.

MakerDAO voting on LRC as collateral commenced two weeks ago, and ends tomorrow. So far, over 93% of MKR votes have been in favour of adding LRC as collateral.

Binance supported isolated margin trading for LRC, and added new trading pairs: LRC/BTC and LRC/USDT, supporting 5x leverage trading.

The Synthetix community included LRC in their basket of assets in sDEFI, an index token.

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Yesterday, August 1st, 2020 was the third birthday of Loopring. A huge and heartfelt thank you to the community for your support over the past three years! They have been amazing, and we are just getting started. We could not have done it without you.

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Loopring is a protocol for scalable, secure exchanges and payments on Ethereum using zkRollup. You can sign up for our Monthly Update, learn more at Loopring.org, or check out an exchange/payment app at Loopring.io.

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Loopring Monthly Update — 2020/06

Strong progress across the Loopring protocol, relayer, exchange and payment application, wallet, and more.

We have made good progress in the R&D of the Loopring protocol and Loopring Wallet. Although product iterations can never catch up with the community’s expectations, from a software engineering perspective, this progress is very satisfactory to us. If you want to learn more about Loopring, please read on.

R&D

Loopring Protocol

We decided to do a Loopring 3.6 release before switching gears to Loopring 4.0 (it will have a better name later). Our goal is to make 3.6 good enough for the next two to three years in production to serve our users.

Built on top of Loopring 3.5, Loopring 3.6 will be larger in scope and will provide additional trading functionalities. To name a few:

  • Improved onboarding — users won’t need to register an account on the zkRollup before receiving tokens or Ether on Layer-2.

  • Multiple transaction types can now be included in the same block — this will greatly increase the block size to reduce both the per-transaction cost and transaction pending time. (no more waiting for only like-requests)

  • More flexible deposits, withdrawals, and transfers — users will be able to do cross-account and inter-layer transfers.

  • Decreased complexity for block creators

  • Decreased costs for some common operations

  • Increased token capacity

We will release an updated design doc in July. Loopring 3.6 has almost been fully implemented, but still needs internal audits, more testing, and some implementation refinements. We plan to have the release ready at the end of this month for an external security audit so that we can start using it in production later this year.

Loopring Exchange

We launched a Layer-2 fast transfer feature on Loopring.io with ENS support. This feature is powered by Loopring Pay, a service that is available for all wallets to support Ether and ERC20 token transfers on a zkRollup. The cost per transfer is negligible for us (can be as low as $0.00006 per transfer) and so we charge zero fees currently as a promotion. This has led to an incredibly positive reaction by the Ethereum communities and beyond — especially in this high gas price environment, where even simple transfers are becoming prohibitively expensive. Thank you all so much. We strongly encourage wallets and Ethereum token distribution services to try Loopring Pay.

https://loopring.io

We also kicked off a Liquidity Mining program which incentivizes users to place resting limit orders on the books, with a dedicated pool of funds per trading pair rewarding users based on predefined rules (described in operations section below). Currently incentivizing ETH-USDT and LRC-USDT liquidity, we’ll keep this program running and will support project teams to start their own liquidity mining campaigns on Loopring.io with their own tokens (we do not charge fees)Contact us if you are interested in improving liquidity for your token, on Ethereum’s zkRollup DEX. Note: in the coming days, we will release an open source ‘Hummingbot Connector’ to allow people to spin up trading bots more easily. This will be a fork from the open source Hummingbot codebase. If you don’t need that, you can plug right in to trade via our API.

Rewards paid out to liquidity miners on our live dashboard. https://loopring.io/account/liquidity-mining

We open-sourced the Loopring.io frontend. Loopring.io’s React codebase is now open at https://github.com/Loopring/dexwebapp. Excitingly, as the first third-party merge, the Ren team has added RenBridge to Loopring.io’s UI. Through RenBridge, you can easily mint renBTC by depositing BTC, and then use that renBTC on Loopring or other exchanges on Ethereum. We encourage developers to improve our frontend codebase or add more features!

RenBridge was added to the Loopring.io UI by the Ren team

Loopring also created and funded a Gitcoin bounty for a responsive frontend for Loopring Pay. The winner will earn 25,000 LRC as a reward. Take a look at the bounty if you are interested. The bounty has just ended — we can’t wait to look at the submissions and see what the future of fast, cheap Ethereum-based payments will look like! Importantly, this Loopring Pay UI will be accessible on mobile, something Loopring.io has not been to date.

Loopring Wallet

Solidified published an audit report for Loopring Wallet’s smart contracts (v1.0). There are a few issues identified which we have already fixed.

In the meanwhile, we are inspired by Gas Station Network’s meta-transaction implementation and have improved our module’s design (v1.1). Going forward, we are also open to becoming part of GSN to allow other parties to relay Loopring Wallet meta-transactions. This is currently impossible because we need a very flexible way of reimbursing relayers with any tokens a wallet may actually possess. Loopring Wallet v1.1 is now code-complete and we hope Solidified to audit it once again. Our plan is to release v1.1 in two weeks, before offering the wallet app to a larger group of people.

We have also completed an internal review for our Android codebase. A few improvements are already in place, including the isolation and decoupling of app-level password with wallet owner’s private key management, etc.

Our engineers also enhanced user experience with the automated app and contract upgrade, the automated Layer-2 account registration and account key reset, and the automatic fee token selection for meta-transactions. The app also supports more types of QR code format to offer better inter-wallet interoperability.

The team is busy preparing the launch of the Loopring Wallet app, which represents the core consumer product we will nurture and grow, and hopefully onboard tens of millions of users to Ethereum and DeFi. This will be possible by using our zkRollup scaling to make the experience enjoyable and affordable. Given that we still need to wait for the release of contract v1.1, only a small number of users in our community will be invited to test the first beta. We plan to spend more time in the coming months on polishing the UI.

Loopring Relayer

Many core functionalities in Loopring Exchange and Wallet are enabled by the new and improved APIs provided by our relayer team, especially Loopring Pay, meta-transactions, and liquidity mining.

We have also implemented a long-awaited feature to enable concurrent updates to our Merkle tree. We replayed all historical layer-2 transactions to verify the feature’s correctness, and we will perform further testing to make sure it works as expanded. With this feature, we can update the Merkle tree 10x faster with the same hardware. We plan to deploy this feature into production in July.

In the meanwhile, we have also tested prover service on Google Cloud Platform (GCP) and further verified the cost is smaller than that on AWS. We are likely to switch to GCP, at least partially, to run our ZKP prover.

Our engineers are also implementing more advanced order types to allow taker-only, maker-only, and stop-limit orders. Hopefully some of these advanced order types will be available in as early as July.

Operations

We are very pleased that Julien Bouteloup joined Loopring Technology Limited as an advisor. Julien has extensive experience trading, and is particularly good at using new market structures and tools. We look forward to Julien's ability and creativity to infuse more value and capability into Loopring Technology.

As mentioned, Loopring held a one-month liquidity mining campaign which began in the middle of this month. It supports 2 trading pairs: LRC/USDT and ETH/USDT, with each pair being rewarded with 3,000 USDT each, shared amongst traders by measuring spread, order depth, and orderbook balance. Users can check their rewards and current ranking on the Loopring Exchange in real time.

We published a Loopring Exchange FAQ, answering the community’s most pressing questions, especially about processing times, costs, and related info.

We reached 2000 users, and then broke 3000 shortly after!

Loopring Exchange has listed new markets pBTC/USDT, COMP/USDT, PNT/USDT, PNK/ETH this month, and has completed more than 1.25 million transactions in total. Loopring Pay now supports 29 tokens, including USDT, USDC, DAI, WBTC, renBTC, pBTC, and some well known DeFi tokens such as KNC, SNX, ZRX and LEND. We’ll continue add more tokens to Loopring Pay, and more trading pairs to Loopring Exchange.

According to DeBank data, Loopring Exchange has settled over 9000 transactions in the past 24 hours, ranking second in the DEX track, behind only Uniswap. And as you can see on DeFi Pulse, the total assets on the Loopring Exchange zkRollup is 7.6 million USD, ranking fourth in the DEX field. (Interestingly, if you included us in the ‘payment’ section of DeFi Pulse given Loopring Pay, we have the second most assets, just behind Lightning Network, and at one point, was actually number one :).

The HAL team built a LoopringBot on Twitter to report real-time account registrations, deposits, and withdrawals on the Loopring Exchange. They also built a “recipe” allowing users to set notifications to several applications when their Loopring zkRollup withdrawal has been processed.

LoopringBot

In The News and On The Ground

LRC

LRC has been proposed by a MakerDAO community member to become a collateral asset for DAI.

11.5% of total LRC supply is now staked.

With the strong advancement of the Loopring protocol, the team is assessing how to best adapt LRC staking mechanics to mesh with our layer 2 capabilities, and insert itself in the new functionality/use cases, such as in Loopring Pay.

Binance launched additional LRC trading pairs: LRC/USDT and LRC/BUSD, and Poloniex listed LRC/USD and LRC/BTC trading pairs.


Loopring is a protocol for scalable, secure exchanges and payments on Ethereum using zkRollup. You can sign up for our Monthly Update, learn more at Loopring.org, or check out an exchange/payment app at Loopring.io.

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Loopring Monthly Update — 2020/05

Loopring Exchange has settled over one million trades; we are launching Loopring Pay next week, a zkRollup fast transfer service, and getting ready for an invite-only beta testing for Loopring Wallet

Loopring Exchange has settled over one million trades; we are launching Loopring Pay next week, a zkSNARK-based layer-2 fast transfer service, and getting ready for an invite-only beta testing for Loopring Wallet.

R&D

Loopring Protocol

We released Loopring 3.5 at the beginning of the month. You can read the most important changes in the release article. Later in this past month we added another feature to 3.5 to make accounts evenly distributed to the layer-2 Merkle tree. This enables relayers to easily shard the Merkle tree into a cluster for better throughput. We also enabled permissionless account registration so you can help your clients or friends register layer-2 accounts before sending them Ether and tokens via Loopring Pay.

Loopring 3.5 is an intermediary release towards our next big protocol release, Loopring 4.0. Loopring 4.0 will provide users with additional trading functionalities and trading instruments. The initial design has been created and is currently undergoing internal review. Preliminary development is already well underway.

We also released version 1.0 of the smart contracts of our smart wallet! This release contains multiple fixes and improvements found in the audit done by Solidified, but also improvements discovered while developing and testing the wallet app.

Loopring Exchange

We have improved how Loopring Exchange manages the layer-2 account keys. Our new approach doesn’t involve brain passwords and provides a much more simple and enjoyable user experience compared to centralized exchanges.

This month we added more 5 trading pairs, including KEEP/USDTUSDC/USDTDXD/ETHAUC/ETH, and RPL/ETH.

https://loopring.io

Loopring’s trading data is now indexed by CoinMarketCap, one of the leading blockchain data providers.

https://coinmarketcap.com/exchanges/loopring-exchange

Loopring Wallet

We changed the wallet app codebase to use the most up-to-date smart contracts after our Solidified audit. All functionalities are tested on the Goerli testnet. Now we are trying really hard to launch the wallet on the Ethereum mainnet, and are just one step away from this goal. Once on mainnet, we’ll start using the app internally, then gradually involve more users to test it.

Loopring Relayer

Our relayer added support for Loopring Pay. Loopring Pay will enable our users to transfer Ether and ERC20 tokens to each other with immediate apparent finality, and without on-chain Ethereum transactions or gas fees. The transfer fee is negligible thanks to our zkRollup solution. Loopring Pay will be available on Loopring.io in early June. Loopring Wallet will also integrate Loopring Pay seamlessly. Ether and ERC20 token transfers among our wallet users will be fast and free.

So, as of this coming week, Loopring is not exclusively a scalable, secure exchange protocol, but also a scalable, secure payment protocol.

This is sorely needed on Ethereum right now, as transfers of stablecoins, especially USDT, are among the biggest gas guzzlers.

We believe Loopring Exchange and Loopring Pay will become the killer features in our mobile app. Our users will not be restricted by Ethereum’s ever-rising gas price and congestion, but still enjoy Ethereum’s security guarantees and everything else it offers.

These abilities will not be confined to Loopring Wallet and Loopring.io users, but also as a service to other wallets, non-custodial exchanges, and payment providers and apps. Any product that needs to move or trade Ethereum assets around quickly and cheaply without sacrificing security will be able to use Loopring’s zkRollup solution.

Our relayer is also testing the Offchain Withdrawal feature. Once launched, offchain withdrawal will allow users to request withdrawals without sending Ethereum transactions. This will reduce users' withdrawal costs and also make withdrawal much faster — the relayer no longer has to wait for 12 block confirmations.

We optimized our AWS deployment and successfully reduced cost by 30%. We are also working on other optimization so we can migrate some services to other providers to reduce costs even further.

Operations

Statistics

Loopring has settled over one million trades since our launch.

https://duneanalytics.com/loopring

For all those trades, we only paid a total of ~50 ETH. At ETH prices at that time (~$200), that means each trade cost only $0.01. That is the cheapest around by far, but we can currently reach two orders of magnitude lower — all it takes is more users and demand.

To celebrate this milestone, we held a small promotion and rewarded 10,000 LRC. The maker and taker of the 1-millionth trade will share 5,000 LRC reward; other traders in the same block will share the other 5,000 LRC reward. The millionth trade was performed by account IDs 1693 and 32, and the zkRollup block contained 127 other trades.

The reward will be distributed in the first week of June. We will also send rewards to those who reset their account keys before the end of May.

Added to our statistics this week, research firm Formal Verification did a deep dive into Loopring in their “In The Network” series. It goes over everything from our zkRollup data, Exchange data, LRC staking, and more.

In The News

Ethereum has been experiencing a very high gas price throughout May. Vitalik, the creator of Ethereum, pointed out that Sharding and Rollups will increase throughput and reduce the gas price. Loopring is proud to be the first and only 100% rollup DEX/payment solution on Ethereum — not only do we publish all required data, but we also publish it to the exact same network as the assets themselves, Ethereum.

Vitalik further let people know that Ethereum scales today, with Loopring.

DeFi Dad created an amazing video tutorial for using Loopring.io. These tutorials are very useful for people who have no experience using a zkRollup DEX (which is a lot of people since we are the first and only :). We strongly encourage people to take a look.

Video: How to Trade with a DEX and Beat High Gas Prices on Ethereum Using Loopring

We created a special code for DeFi Dad: register on Loopring.io with code “DEFIDAD”, and you receive VIP4 status for 1 year, 0% maker, 0.06% taker fees. DeFi Dad does not receive any referral kickback on this — it is only a benefit for users.

[A belated thank you to Crypto Owen who also created a great tutorial article last month on how to use Loopring.io].

Daniel Wang, Loopring’s founder, had an interview with Epicenter. Epicenter is one of the most well-known and useful crypto podcasts around, worth a listen to hear about Daniel’s background, Loopring’s origin story, and of course, all about zkRollup and the future of DEXs.

https://epicenter.tv/episodes/340

This month, Daniel also joined a panel hosted by Milin Finance and shared his perspective on DeFi and DEX. Daniel said DEXs will outcompete CEXs and become dominant once the following five issues are solved: securitythroughputcostuser experience, and cross-chain assets. He said Loopring is focusing and indeed solving the first four challenges but relies on the Ethereum community to figure out solutions for the last one.

Brecht Devos, Loopring’s Chief Architect, was interviewed by on Hidden Gems by Covalent. Brecht shared how Loopring uses zkRollup to scale DEX and payment and how zkRollup can scale Ethereum in general. This is a more technical talk — worth watching the video interview if you want to learn about zkRollup scaling technology in-depth.

You can see the shorter video clip ‘Gems’ in this tweet thread, where Ganesh, Covalent founder, highlights many points.

We held an instructive poll on where the community thinks the first batch of zkRollup DEX users are more likely to come from, DEXs or CEXs. zkRollup DEXs provide the best of both worlds, so it will be interesting to watch.


Matthew Finestone, Loopring’s Business Director, delivered a presentation at the Ethereal Virtual Summit. He shared his perspective on zkRollup scalability and DEXs. Suitable for many (and even opposing) trader types, as you see below!

Matthew also presented Loopring Exchange and how DEXs will outcompete CEXs at DeFi Toronto.

Jay Zhou, Loopring’s COO, participated in the DeFi Discussion online panel hosted by DystopiaLabs. He asserted that the layer-1 DeFi projects will continue to suffer from Ethereum’s capacity limitation before ETH2 is available and that rollups are the best approach for scalability. He also shared Loopring’s throughput and cost improvements over layer-1 DEX solutions.

Steve Guo, Looopring’s CTO, streamed an interview with Lingbo Huang, a partner of Fenbushi Venture Capital. They discussed tBTC and the technologies behind it, as well as the potential of smart wallet apps.

We started to make educational short videos for the Chinese community, especially for the general non-crypto-native public. The first two are about crypto wallets and smart wallets. All videos will be available on TikTok. If you are interested, please follow us on TikTok, our ID is loopring.live.

Also of importance to us, the DXdao officially went live with its bonding curve fundraiser, which is/was a great success, and stood up its website, representing the first DAO to approve and install its own website via consensus: dxdao.eth.link. Loopring has been a DXdao reputation holder since inception, and continues to be one of its largest stakeholders. It is a bright spot in DAO governance, and continues to pick up momentum.

Upcoming AMA

  • June 1st, 4 PM (Shanghai time), Daniel will join an online AMA with guests from Binance and OKEx to discuss the current industry trends and prospects, then answer questions from the community. We welcome you to watch the AMA’s live stream and will reward selected users with up to 20,000 USD worth of tokens.

  • June 2nd, 7 PM (Shanghai time), Loopring and Nest will cohost an AMA on Zoom to talk about DeFi, price oracles, and DEXs.


Loopring is a protocol for building high-performance, non-custodial, orderbook exchanges on Ethereum using zkRollup. And as of this issue — a protocol for scalable and secure payments as well! 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 — 2020/04

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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