Loopring (LRC) Price Today

What is Loopring?

Deployed in 2019, on the Ethereum mainnet, Loopring is an open protocol that helps in building DEXs. By merging centralized order matching with decentralized on-chain order settlement, Loopring aims to create a hybridized product. LRC is the native token of Loopring that follows the ERC-20 standard and is also “deflationary” in nature.

Officially described as an “open-sourced, audited, and non-custodial” platform, it leverages zero-knowledge proofs. The native token is responsible for the key operations on the protocol as well as incentivizing the correct use of the network. This project aims to be an interconnected system of trading platforms where traders can access several platforms from a single dashboard.

How Loopring Works

Known as “the world’s first Ethereum smart wallet,” Loopring is managed by smart contracts, contrary to ZK-Rollups, which are powered by a private key. ZK-Rollups helps build exchanges on top of the platform to lower costs and avoid slow speeds without compromising security.

These rollups on the platform work by winding up a huge number of transactions together and executing them outside the layer-1 blockchain. On completion, a cryptographic proof is then generated, which helps settle trades more quickly.

LRC Mining

It uses a consensus mechanism called “Proof of Stake Automated Market Making” (PoS-AMM). This mechanism allows users to earn rewards for providing liquidity to the exchange and participating in the network.

This is done by locking up LRC tokens in a smart contract to provide liquidity to trading pairs on the Loopring exchange. Users can also earn rewards for participating in the network as “Ring-Miners.” They can earn by matching and executing trades on the exchange. Ring miners receive LRC tokens as service fees in return.