Loopring

Loopring is a layer-2 scaling protocol on Ethereum that uses zero-knowledge proofs to enable high-throughput, low-cost trading and payments while preserving user custody. It is designed to improve scalability for decentralized exchanges and related applications without requiring users to give up control of their funds.

The protocol is built around a zkRollup design that combines off-chain order matching and ring-based trade routing with on-chain verification. Off-chain order books and a ring-matching engine batch multiple trades into a single zero-knowledge proof that is posted to the Ethereum mainnet, reducing gas costs and increasing throughput. This architecture supports decentralized exchanges and payments, with funds held by users in their own wallets and settled when proofs are verified on-chain.

Loopring uses an ERC-20 token, LRC, to pay protocol fees and to participate in governance and incentive programs. LRC holders can stake tokens to support network operations and earn rewards, while governance mechanisms guided by the Loopring DAO influence protocol parameters and future upgrades.

History and development notes indicate that Loopring was founded in 2017 by Daniel Wang. The project has progressed through multiple protocol iterations to bring zkRollup technology to DeFi trading, along with products such as Loopring Wallet and Loopring Pay. The Loopring Foundation and ongoing ecosystem collaboration support development and governance of the protocol. As a scaling solution, Loopring positions itself alongside other zk-rollup projects to provide non-custodial, high-throughput trading on Ethereum.