Loopring is a decentralized exchange protocol based on the blockchain, allowing users to exchange tokens and tokenized assets across multiple exchanges. It’s important to know that Loopring is not an exchange itself, but rather an infrastructure connecting different exchanges.
Loopring managed to raise over $40 000 000 in just over two weeks, which means there was a lot of interest in the ICO.
Loopring is an overall decent project. The team seems reputable, with the CEO and CTO having background in companies in Microsoft and Paypal and they already have a working product, which is quite nice in an era of whitepaper-only ICOs.
The LRx is the token’s general notation. LRx has a lot of different token variations depending on the blockchain it is on. LRC is the Loopring token on the Ethereum Blockchain, LRQ is the token’s name on Qtum and so on. The LRx token is used to power the Loopring network and reward ring-miners.
Aside from the initial issues and bugs with the Loopring wallet and the fact that the initial circulating supply on coinmarketcap was wrong (whether this was done intentionally to pump the price or just by mistake is unknown), the platform has almost no issues. If you open their site at https://loopring.io/#/ you can set up and start using the Loopring DEX in minutes. The main competition Loopring faces as a DEX comes from the 0x Project.
Loopring views orders as token exchange requests instead of bids or asks. The protocol is able to mix and match multiple orders in a circular trade, applying the use of up to 16 orders, providing cutting-edge liquidity.
This process is powered by the so-called Ring Miners. These miners have the responsibility of ensuring that orders can be filled until their cancelation or execution. The miners are rewarded for their service, incentivizing them to find the best rate for traders on the platform and minimalizing arbitrage opportunities.
The Loopring platform offers open participation, any exchange willing to integrate Loopring can become a DEX, making it possible to share liquidity and management solutions.
Loopring is perfect with small exchanges who stuggle with liquidity issues which put off potential customers. Bigger exchanges can deploy their token reserves and earn more money as a market-maker.
The platform is also blockchain-agnostic, meaning it can be deployed on top of any blockchain that offers smart contract support. Loopring also gives full control of the trader’s own funds and requires absolutely no deposit, allowing users to purchase tokens straight out of their wallet.
