Loopring is an open multilateral trading protocol between tokens based on ERC20 and smart contracts. Through this agreement, it is possible to establish a decentralized exchange application that does not require asset custody and fund freezing. Using decentralized technology, it provides a zero-risk token exchange model, and allows multiple exchanges to conduct off-chain matching and on-chain clearing and settlement for the same order through competition. LRC is the Loopring token on Ethereum. LRC holders can pay minimal transaction fees; benefit from all network activity.

1. Operating mechanism

An order in Loopring can be broadcast to multiple exchanges and matched by these exchanges in parallel. A part of an order can be matched by one exchange, and another part can be matched by another exchange. There is competition between exchanges, so orders are matched faster and better (at the best price). Using Loopring to place an order, the transaction will not be unable to be matched in time due to the exchange being attacked by DDOS.

1. The matching system it provides is an automated (non-manual intervention) matching system that supports both pair matching and loop matching. There is no other project that involves the same model.

2. It broadcasts the same order to different exchanges or matchmakers (could be wallets), and matchmakers can compete to match orders or part of orders to achieve the fastest and best matchmaking solution.

3. Cost saving and profit sharing, the matchmaker can directly charge a handling fee when matching orders, or choose to obtain the price difference between the matched orders, that is, cost saving and profit sharing to make a profit. Increase the liquidity of tokens in a number of ways.

2. Function of LRC token

1. As a matching fee
LRC can be specified in the order as the matching fee paid to the exchange. Although the agreement supports the sharing of profits saved by selling tokens as a means of payment, for exchanges, there may be more and more types of ERC20 tokens that need to be supported in the future. If tokens are issued as a unit to pay the handling fee, then the calculation of the income of a matching will become complicated; on the contrary, if the income is measured (or used to calculate the cost) through LRC, it will be much simpler. Similarly, for the order initiator, the approximate cost of an order can be obtained through public information. If calculated by selling tokens for each order, the cost calculation during the order placing process will be relatively scattered.

2. As an exchange registration mortgage
The order initiator hopes to get the best match for his order, which requires the exchange to be professional in all aspects, especially for all orders of aggregation. Since decentralized exchanges have no geographical restrictions, a good exchange should be able to see more orders than a relatively poor exchange, and should also be able to find the best trading loop in the shortest time. In order to encourage strong exchanges and eliminate weak exchanges, we provide an exchange registration mortgage mechanism: exchanges can mortgage a certain amount of LRC tokens to smart contracts. The exchange can apply for the unfreezing of the pledged tokens at any time, but after the application is made, the tokens locked up after one year can be transferred out. Not all exchanges are required to register for staking. Another role of exchange token collateral is to prevent exchanges from frequently changing their identities in order to discard unfavorable historical statistics.

3. 2020 R&D Roadmap

Loopring's 2020 plan is divided into four aspects: products, protocols, relay and background, and operations.

1. Products
1. On February 27, 2020, Loopring officially launched a new generation of decentralized exchange based on zkRollup technology: https://loopring.io. Currently, Loopring DEX has 1,460 registered users and 460,000 transactions.
2. We expect to launch the Loopring 3.0-based Ethereum Wallet App in May. This App will be specially targeted at novice users in mainland China to solve the problem that most Chinese people cannot use and are not used to using MetaMask.

2. Protocol
We have developed a zero-knowledge proof system in depth to improve the degree of customization and upgradeability of the protocol, and are committed to reducing transaction costs.
Links to related articles are as follows:
1. Loopring completed the deployment and configuration of 3.0 on Ethereum https://blogs.loopring.org/loopring-deployed-protocol-3-0-mainnet/
2. Overview of Loopring 3.0: Zero Knowledge Proof https://blogs.loopring.org/loopring-3-0-zkps/

3. Relay and background
1. The API of light cone relay is expected to be launched in April. We hope that third parties can easily connect to any Loopring DEX based on lightcone relay by using this document.
2. We plan to be able to support 2 to 4 decentralized exchanges based on Loopring 3.0 in 2020.
3. We also plan to enhance data operation and analysis capabilities on the basis of the light cone 3.0 architecture, and use the growth hacking methodology to achieve new acquisition, retention, and promotion; and provide better decision support for relay customers.
4. We will open source and launch the transaction browser of Line Printing Technology 3.0. The browser will provide data query services (mainly including account balance and transaction history) of various exchanges on the protocol 3.0.

4. Operation
1. LRC Pledge
LRC holders can accumulate points by staking LRC to obtain the protocol fee income of all DEXs based on Loopring Technology 3.0. Now, the total amount of LRC pledged has exceeded 125 million, and the current value exceeds 24 million RMB. For specific rules and operations, please refer to: https://blogs.loopring.org/lrc-staking-golden-window-opens/.

2. In January 2020, Loopring announced a partnership with Chainlink to integrate multiple oracles into the Loopring 3.0 zkRollup DEX protocol. The first integration plan has been deployed on the Ethereum mainnet, which will provide DEX users with real LRC/ETH price information to ensure the security of LRC pledges.

3. At the end of January 2020, Loopring and the Ethereum Australia community held a DeFi forum in Sydney. CMO Zhou Jie attended the forum and shared. Also participating in this event were local Australian incubator YBF Ventures, wallet companies AlphaWallet, Synthetix and Ethereum 2.0 development team Sigma Prime.

4. From February 14th to February 16th, 2020, Loopring's Commercial Director Matthew Finestone was invited to participate in ETHDenver, which was attended by more than 2,000 Ethereum enthusiasts and developers. Matthew gave two presentations: one on Loopring and our zkRollup performance statistics; the other on dxDAO (of which Loopring is a key stakeholder).

5. From March 16th to March 31st, 2020, Beijing time, in order to further test the functions, interface and performance of Loopring DEX, we held a two-week trading competition and issued high LRC rewards.

6. From March 25th to April 15th, 2020 Beijing time, in order to allow the community to understand DEX and Loopring Technology 3.0 more easily, Loopring Technology will collect information from the community so that novice users can understand A good article, and a reward of up to 10,000 LRC will be issued.

7. We will also hold activities such as AMA and invitation to register, with the goal of increasing the number of registered users and transaction volume of Loopring DEX. We hope that by the end of 2020, Loopring's average daily transaction volume will be at least 50 times that of Uniswap, the most successful decentralized trading platform in Ethereum, and become the largest platform in the DEX field.

Related Links:
https://loopring.org/#/about