Loopring (LRC)

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You can deposit or withdraw LRC from Bitso using the Ethereum (ERC-20) network exclusively. Make sure you choose this network when transferring your coins.

 

What is Loopring (LRC)?

LRC is the Ethereum-based token of Loopring, an open protocol that serves to help build decentralized exchanges. Loopring is a free, extensible, standardized building block for dApps seeking to incorporate token exchange functionalities. Its priority is to facilitate trustless, anonymous trading. Between 2020 and 2021 the daily trading value of Defi has exploded to between $50-$100M on average. Most of this value currently occurs in centralized exchanges. Loopring is attempting to capture the best of both worlds between decentralized and centralized exchanges, by offering a product that can eliminate some of the inefficiencies that are inherent to each.

 

What makes it unique?

  • Loopring operates on both the Ethereum and Neo blockchains;

  • On Ethereum, Loopring’s ticker is LRC. On Neo it is LRN;

  • Loopring believes the trustless exchange of tokens is a significant value proposition for crypto;

  • Instead of being custodial and settling transactions internally, DEX allows transactions to be settled trustlessly, on-chain;

  • Loopring serves as a platform to build off of, with a unique combination of both centralized and decentralized characteristics.

 

Purpose

In their whitepaper, the founders of Loopring state “Trading decentralized tokens on centralized exchanges doesn’t make sense from a philosophical perspective, as it fails to uphold the virtues these decentralized projects espouse.” Loopring itself is not a DEX but instead a modular platform upon which to build a DEX. They use a hybrid method of managing orders internally, as a centralized exchange would, but settle the trades on-chain. For this, they use a proprietary mechanism that allows for combinations of up to 16 assets to be involved in what they call “circular trades”, which removes the limitation of trades having to be one-to-one. They believe this will enhance the DEX’s liquidity while speeding up the rate at which transactions are processed.

 

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