Loopring

The protocol for decentralized token exchange.

home link https://loopring.org/

reference material Whitepaper.pdf

Community

Market
45.74 KRW
Exchanges that listed the coin
21
Symbol
LRC
Dapp
To be released
Project introduction

Loopring is a protocol for building a decentralized exchange. It operates as a set of open-type smart contracts for transactions and settlements, and operates with a group of actors that aggregate and deliver orders in an off-chain.

Executives and partners

Daniel Wang

CEO

Jay Zhou

CMO

Johnston Chen

COO

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Medium

Loopring Bi-Weekly Update —...

Loopring Bi-Weekly Update — 07/21/2019We started to develop the beta3 version of the Loopring Protocol 3.0, which will greatly increase the throughput and reduce the cost per settlement. We are excited to share some preliminary results in this bi-weekly update.Research & DevelopmentLoopring ProtocolWe have started work on the beta3 release of protocol 3. beta3 will contain a number of changes that will greatly improve the protocol’s throughput and lower the cost per trade. We switched to a much more SNARK friendly hash function called Poseidon. We can now also verify multiple proofs of the same circuit together on-chain which reduces the average cost of verifying proofs. beta3 has just started development but the preliminary results are very promising: throughput with data-availability has increased from 200 trades/second to 290 trades/second, throughput without data-availability has improved from 660 trades/second to 5200 trades/second.We plan to further simplify the fee model to reduce the number of ZKP constraints per settlement, which will reduce cost per settlement as well. beta3 will be released for relayer integration and third-party auditing before the end of September.Lightcone RelayerFrom a global perspective, we have identified five milestones (moonlight, crescent, bloodmoon, corona, and lightsail) for the next six months based on business appeals and new architecture plans, covering high availability, asset loss prevention, performance, safety, and optimization of R&D processes. At the same time, we are adopting the agile development process. We have identified relevant tasks and assigned them to team members.We have written most of the code related to deposits and withdrawals. The next step would be system integration and testing. In the meanwhile, we are working on a new match-engine and have made some progress. We have also started optimizing the relayer gateway to provide a set of REST/Websocket APIs.ProductsFor the DEX web app, we have completed the user registration, user logging-out, deposit, and withdrawal sub-pages/-modules. We have also started the integration with relayer APIs. In the next weeks to come, we will perform internal testing with the first version of the lightcone relayer.Operations & Marketing07/11/2019 — Loopring CMO, Jay Zhou, attended DeFi Tech Talk, co-hosted by Fintech4Good, ZOS and Star Finance, sharing his thoughts about the future trends of decentralized exchanges and the development strategy of Loopring.07/13/2019 — We published “Loopring 3.0: 1-Million LRC Bug Bounty”, allocating up to 1,000,000 LRC for those who identify significant security issues in Loopring Protocol 3.0.07/17/2019 — We published “Loopring’s Stake in the dxDAO”. Loopring participated in the dxDAO and earned 10.5% of the DAO’s total Reputation (~voting power). We are excited to contribute to this important governance experiment.07/18/2019 — We have reached out to multiple auditing teams, including SmartDec, ChainSecurity AG, and SECBIT, for quotations regarding beta3 security audits. We are comparing offers and will make a decision soon.Loopring is a decentralized exchange protocol utilizing zkSNARKs to bring highly scalable, non-custodial trading to the masses. You can sign up for our bi-weekly update, or learn more at:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ GitHub: https://github.com/Loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring Bi-Weekly Update — 07/21/2019 was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 07. 21

Loopring’s Stake in the dxDAO

Loopring participated in the dxDAO and earned 10.5% of the DAO’s total Reputation (~voting power). We take this seriously, and are excited to contribute to this important governance experiment. This post briefly describes how that came about, and what we plan on doing with it.The dxDAO is a next-generation Decentralized Autonomous Organization for community governance of software protocols. This DAO is an experiment in coordination with an initial focus to govern/guide Decentralized Finance, beginning with taking over control of Gnosis’ DutchX trading protocol.In May, we participated in the dxDAO initialization by locking up a significant amount of LRC for one month, for which we earned Reputation — our say in the system. The result is that we’ve earned 10.54% of the Reputation, which represents the most held by a single address.For context, the 2nd and 3rd largest Reputation holders own 8.4% and 7.7%, respectively. 399 addresses participated and received Reputation, with 7 addresses controlling >50%. Further distribution stats can be found here.The Loopring-controlled address which holds this Reputation is 0xfE3619eEB34501379B479256d3B90dc83CaB8273. This was staked from (and returned to) the Loopring Ecosystem Advancement Fund (LEAF).Our motivation can best be seen in the tweet thread below, but suffice to say we wanted to get involved because we find it important, interesting, and pertinent given Loopring’s nature as an open DEX protocol — with decentralized governance needs that will eventually call on the community.body[data-twttr-rendered="true"] {background-color: transparent;}.twitter-tweet {margin: auto !important;}0/ Today, the #dxDAO launched, a grand DAO experiment. This DAO can decide to do anything that is possible on Ethereum - deploy smart contracts, create work bounties, etc. Loopring has followed the dxDAO's development, and has excitedly jumped in 🦘 https://t.co/yWZVJbB0fo — @loopringorgfunction notifyResize(height) {height = height ? height : document.documentElement.offsetHeight; var resized = false; if (window.donkey && donkey.resize) {donkey.resize(height); resized = true;}if (parent && parent._resizeIframe) {var obj = {iframe: window.frameElement, height: height}; parent._resizeIframe(obj); resized = true;}if (window.location && window.location.hash === "#amp=1" && window.parent && window.parent.postMessage) {window.parent.postMessage({sentinel: "amp", type: "embed-size", height: height}, "*");}if (window.webkit && window.webkit.messageHandlers && window.webkit.messageHandlers.resize) {window.webkit.messageHandlers.resize.postMessage(height); resized = true;}return resized;}twttr.events.bind('rendered', function (event) {notifyResize();}); twttr.events.bind('resize', function (event) {notifyResize();});if (parent && parent._resizeIframe) {var maxWidth = parseInt(window.frameElement.getAttribute("width")); if ( 500 < maxWidth) {window.frameElement.setAttribute("width", "500");}}It should be noted that Loopring has plans to build a DAO of its own, specific to our protocol parameters and considerations. Excitingly, this LoopringDAO can inherit some of this dxDAO Reputation — and conversely, the dxDAO may earn voting power in the LoopringDAO. Each DAO having a say in the other.ProposalsThe dxDAO Reputation distribution is complete, and the governance phase is now live! That means anyone is able to put forth a proposal for the dxDAO to vote on, and enact. It also means that the ‘creators’ of the dxDAO have set it free, and it is now a being of its own, ready to make decisions and evolve.As such, Loopring wants our first proposal to give back to the dxDAO and help with distributing the Reputation more broadly. Specifically, we want to donate/distribute/auction 0.5% of the dxDAO Reputation according to some manner voted on by the dxDAO itself. Please see and help discuss here:Loopring desire to donate/distribute/auction 0.5% of our ReputationOnce rough consensus becomes clear on the most desired distribution(s) of this 0.5% Reputation, we will make a formal proposal to the dxDAO. Of course, we will make and participate in other proposals as well.A guide on how to submit proposals can be found here. The interface for these governance decisions can be found here. The dxDAO is built on DAOstack technology and consensus protocol.Moving ForwardWe are truly excited to take part in this journey and have already learned tons. Governance is a critical component to trustless trading — a tenet Loopring protocol is quite literally built on. Moreover, now that Loopring v3 is handling Ethereum scaling with ZKPs, we feel it is time to turn part of our attention to the mechanisms which will ensure Loopring becomes a ‘super-scalable organization’.Please get involved in these discussions here on the DAOtalk forum, or via any of our normal channels. We’d love to hear what the community has in mind for other proposals.Loopring is a decentralized exchange protocol utilizing zkSNARKs to bring highly scalable, non-custodial trading to the masses. You can sign up for our bi-weekly update, and learn more at:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ GitHub: https://github.com/Loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring’s Stake in the dxDAO was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 07. 17

Loopring 3.0 1-Million LRC ...

Loopring has allocated up to 1,000,000 LRC for those who identify significant security issues in Loopring Protocol 3.0.To participate in the Bug Bounty program, please visit https://gitcoin.co.BackgroundLoopring is an order-based DEX protocol. The 3.0 version scales by migrating most storage and computation off the Ethereum blockchain. User balances and order trading histories are maintained as part of an off-chain Merkle tree per DEX.Requests, such as deposits, withdrawals, order cancellation, and trade settlements, are processed as batches to update the Merkle tree. For each batch, the DEX operators only need to publish a 32 bytes post-processing Merkle tree root to Ethereum — and then, asynchronously, provide a Zero-Knowledge proof to verify user balances and order trading histories have been updated strictly by the rules enforced by the protocol.Thanks to SNARKs, Loopring can settle up to 660 trades per second. If the on-chain data-availability feature is enabled, Loopring can still settle 200 trades per second. We expect to implement a more efficient data compression solution to offer even higher throughput.FeaturesThe current beta release, v3beta2, supports the following features:Symmetric order modeling: All orders take the same format, regardless if they are maker orders or taker orders.Dual Authoring: This is inherited from the previous versions to prevent orders or settlement requests from being stolen.Order auto-scaling and partial matching.Withdrawal mode: When a DEX fails to fulfill duties enforced by the protocol, users can withdraw their full balances by providing valid Merkle proofs (and the DEX operator got slashed). If on-chain data-availability is on, Merkle proofs can be generated merely from on-chain data; otherwise, users will have to request data from DEX operators.Maintenance mode: Loopring provides a way for DEX operators to temporarily suspend user requests so they can upgrade their infrastructure. This is critical to ensure DEXes can be truly production-ready.Proactive withdrawal distribution: Loopring DEX operators distribute approved withdrawn balances back to users’ addresses in a proactive way. This means users do not have to take a second action to get their tokens back to their own wallets — same as centralized exchanges.Bounty RulesWe’ll pay up to 250,000 LRC for each critical bug, defined as a bug that causes all funds to be susceptible to loss; up to 100,000 LRC for each bug that loses one user’s fund; and up to 50,000 LRC for other bugs.Performance enhancement suggestions are welcomed but do not qualify for bounties. We have many existing ideas on how to improve the throughput and/or lower the cost. That said, if your idea is truly inspiring and eventually gets adopted, we may still grant you some tokens at our discretion.This bounty program is set up only for the Smart Contracts in v3beta2, circuits excluded. Bugs found in other versions don’t qualify. The Design Doc is something you must read to understand the overall design and solidity code.This bounty program is valid for 3 months (Oct 13, 2019).How to submit your findingsCreate an issue at https://github.com/Loopring/protocols/issues.Prefix your issue with [Protocol3], and add Loopring Protocol 3 as Projects. Please also label it as Bug and Bounty .If you just want to reach out to ask questions, please also create an issue — unless there is a duplicate one, and label it as discussion instead.Thanks! Looking forward to the community’s help. Here is this same bug bounty as a GitHub issue. We will also be using Gitcoin to handle the bounty program, so please feel free to check it out here too.Loopring is a decentralized exchange protocol utilizing zkSNARKs to bring highly scalable, non-custodial trading to the masses. You can sign up for our bi-weekly update, and learn more at:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ GitHub: https://github.com/Loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring 3.0 1-Million LRC Bug Bounty was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 07. 13

Loopring Bi-Weekly Update —...

Last week we released the second beta of Loopring 3.0 — beta2. This version has been repeatedly tested and is very stable. In the coming week, we will release a bug bounty for this.Research & DevelopmentLoopring Protocol v3We finalized the 2nd beta of protocol v3 which will be used for internal testing. The beta2 release will also be the used for the upcoming bug bounty for protocol v3 —stay tuned this week! Many small improvements were done and the testing has been significantly improved.This version brings Loopring’s throughput to 200 trades per second with on-chain data-availability and 660 trades without. This version also guarantees the same level of security as Ethereum main-net.Lightcone Relayer v2Chao Ma, former head of engineering at Alipay International, has graciously been leading Lightcone Relay architecture in the past two weeks. With his guidance, we have refactored almost all workflows, and the current architecture is much more robust and will provide better performance. Based on this update, we have designed APIs and begun development.ProductsWe have been focusing on the integration of Lightcone_v2.js SDK and web DEX. Previously, SDK was written using both Javascript and Typescript, causing API inconsistency. Right now, we have migrated all Javascript code to Typescript. We have also implemented a gRPC server for Lightcone Relay API, which has been deployed on AWS. It greatly facilitates Lightcore_v2.js SDK development and Lightcone Relay API testing. We are using mock data on gRPC server. Once Lightcone Relay API is ready, we will quickly switch to it.Operations & Marketing06/25/2019—Decentralized financial lending platform, Constant, supported the borrowing of USD or VND (Vietnamese Dong) by collateralizing LRC.06/26/2019 — We published Loopring 3.0 Overview: From A to zkSNARKs— a high level overview of protocol v3. It describes how we use zero-knowledge proofs to achieve a scalable and secure DEX.07/03/2019 — Guo Xunhui (Steve Guo), a very experienced senior engineer and zero-knowledge expert, officially joined the Loopring Foundation as CTO. He will lead the technical team to design and develop DEX products, develop matching engines and relays, and optimize the zero-knowledge proof technology at the protocol level.07/05/2019 — Dolomite, a leading DEX built upon Loopring will be launching in the coming weeks and hosted an AMA on reddit. They also did an interview with DeFiPrime.07/06/2019 —Loopring and several institutions and media outlets hosted a meetup on decentralized exchange and trading in Shenzhen.07/07/2019 — Loopring and the Asian Blockchain Society, PiedPiper and others held a DeFi meetup in Hong Kong. Participants included PwC, Consensys, Set Protocol, GlobalSTOx and Loopnest.Loopring is a decentralized exchange protocol utilizing zkSNARKs to bring highly scalable, non-custodial trading to the masses. You can sign up for our bi-weekly update, or learn more at:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ GitHub: https://github.com/Loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring Bi-Weekly Update — 07/07/2019 was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 07. 07

Steve Guo joins Loopring as...

We are thrilled to announce that Steve Guo joins Loopring as our Chief Technology Officer. Steve will lead the effort on DEX product design and development, matching-engine and relayer engineering, as well as optimization of zkSNARK proof computation.About SteveSteve has had a wonderful career and academic background. Steve was admitted to the University of Science and Technology of China when he was only 15 years old. He graduated as a Ph.D. in computer science in 2006 and started his career at Intel as a software engineer and a tech lead.During the following years, Steve had been dedicating his work to Android ROM development and customization and later became a true Android expert. In 2015, he joined Cheetah Mobile, a public company listed on NYSE, as a Senior Director of Engineering, after the company acquired his first startup, Jinmao Information Technology Limited.Steve GuoIn early 2018, Steve founded a blockchain company, Dora Network. The company focused on side-chains and interoperability; and in the meanwhile, his team developed strong capability for optimizing Zero-Knowledge Proof computation with GPUs.We are lucky to have Steve aboard. His talents, knowledge, experience, and leadership are invaluable additions to the Loopring Foundation.Meanwhile…We’ve also hired two full-time backend developers — Yue Wang and Sheng Chen. They have both worked with Steve previously, and already have a great team dynamic. With these new talents, Loopring now has 15 full-time developers in total. Together we will bring high-performance ZKP-based DEX solutions to the Ethereum ecosystem, and beyond.About LoopringLoopring is a decentralized exchange protocol utilizing zkSNARKs to bring highly scalable, non-custodial trading to the masses. You can sign up for our bi-weekly update, and learn more at:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ GitHub: https://github.com/Loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Steve Guo joins Loopring as CTO was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 07. 03

Loopring 3.0 Overview: From...

This post is meant to provide a quick overview of how Loopring 3.0 works, and how we use zkSNARKs to enable scalable, secure DEXs. For a deep dive, you can check out the full design doc on GitHub.IntroductionThe third version of the protocol tackles the scalability problem of decentralized exchanges. Previous versions of the protocol already did the order matching off-chain, but the settlement was completely on-chain. This still has a high computational and storage cost on-chain.Protocol 3.0 solves this by moving almost all data off-chain as well as moving all computations for all requests off-chain using zero-knowledge proofs (zkSNARKs).Merkle TreeData is stored in a Merkle tree using an account model. Each user has a single account with a one-to-one mapping to his Ethereum address. This account can store balances for all tokens the exchange wants to support and also stores all the trading history data for the user. Requests modify the Merkle tree and the state transitions are verified on-chain using proofs.BlocksFor efficiency reasons, requests are batched together in blocks. The cost for verifying a proof remains constant no matter the number of requests in a block, but we are limited in how many requests we can include in a block, otherwise, the proof verification on-chain would not be efficient anymore. How many requests we can include in a block depends on the complexity of the request. If multiple requests types would be included in a block there would be some overhead of doing computations that are only necessary for a single request type so we limit blocks to a single request type for now.We currently support 5 different requests:Trade settlementDepositsOn-chain withdrawalOff-chain withdrawalOff-chain order cancellationOnly the first three are necessary for building a fully functional DEX. The other two provide some extra flexibility for users and exchanges.Once the DEX operator has committed a block on-chain he also needs to submit the proof for the block within a time limit. The commit of the block and the submitting of the proof is done separately because the proof generation currently takes some time. By allowing the DEX operator to commit the block first without having to wait on the proof generation allows other operators to create new blocks that build upon the state of the latest committed block and also allows the proof generation to be done in parallel. Once the proof is generated the operator can send the proof on-chain so the state transitions done in the block are verified. If the operator fails to submit a valid proof in time he is punished and the state is automatically reverted to a valid state.Data AvailabilityOnly the Merkle tree root is stored on-chain. This is sufficient for users to prove (using a Merkle proof) that they own a certain amount of tokens on the DEX. Even when the DEX operator doesn’t cooperate any more users can withdraw any funds they have in ‘withdrawal mode’.Users need to be able to create a Merkle proof. For that, they need to have access to the complete Merkle tree, not just the Merkle root. In the best case, this data is made available somewhere by the DEX, but there is no guarantee that this is actually the case. To make sure all data is available for all users this data is sent on-chain (this is done using CALLDATA, not storage, which is cheaper and more future proof). Currently, this still has a high cost on Ethereum (though this will improve in the future) and this limits the maximum throughput that can be achieved. This is why we also support disabling on-chain data availability, DEXs are then free to implement some off-chain solution for this.User FlowDepositingTo start trading users first need to deposit some funds to the exchange smart contract. This is done using a normal on-chain transaction and the request is added to the on-chain deposit queue. Once the DEX operator includes the deposit request in a block the user can start trading.TradingA user signs an order a single time and the order contains all the data needed for a DEX to settle the order. The protocol supportsMaker/taker orders (using the same order)Market ordersFee payments to the DEXRebate payments from the DEX to an order ownerAutomatic order scalingPartial order matchingDual-Authoring to prevent the stealing of orders and/or ring settlements…How the orders are matched is fully up to the DEX, but the settlement will respect the wishes of the order creator in all cases.The DEX creates a ring settlement request by matching two orders and sends the request to the DEX operator who will include the request in a block to receive the fee specified in the request. The operator can then commit the block on-chain.WithdrawingIf the user wants to withdraw their tokens from the exchange they need to do a withdrawal request. If the user does an on-chain withdrawal request the DEX needs to include it in a block in a reasonable time. If a certain amount of time has passed since the withdrawal request was done we first force the operator to process it by only making it possible to commit on-chain withdrawal blocks. If the operator still refuses to process the withdrawal request the exchange goes into ‘withdrawal mode’. ‘Withdrawal mode’ is irreversible and completely shuts down the exchange, the only thing that’s still possible is for the users to withdraw their funds. This ensures that users remain in full control of their money in all cases without having to trust anyone.About LoopringLoopring is a decentralized exchange protocol utilizing zkSNARKs to bring highly scalable, non-custodial trading to the masses. You can sign up for our bi-weekly update, and learn more at:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ GitHub: https://github.com/Loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring 3.0 Overview: From A to zkSNARKs was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 06. 25

Loopring Bi-Weekly Update —...

Loopring Bi-Weekly Update — 06/23/2019Starting next week, Loopring will shift its engineering focus from protocol development to relayer development to ensure the launch of our first v3 public beta in Q4, 2019.We’ve also decided to minimize the effort on frontend/product development and focus on protocols and relayers. This means we will provide no further upgrade to our wallet products and will in the future provide only an open-sourced DEX web app. We believe our ecosystem partners (mainly DEXes and wallets) should have the capability to develop their own unique user-facing products and services to stay competitive.Research & DevelopmentLoopring Protocol v3We added improvements to protocol 3 that further reduces the data we have to sent on-chain for data availability. In the circuits, we first transform the data into a format that can be compressed more easily. The data can then be compressed and sent on-chain. Our smart contract decompresses the data to make sure all necessary data is still available. How much this reduces the gas usage depends on the data and this will be further improved by optimizing the off-chain compressor and the on-chain decompressor (which can be versioned and upgraded without any changes to the protocol) and by optimizing for realistic data patterns. We expect this feature to improve the throughput with data availability even further.We also did some improvements to the maintenance mode to provide more flexibility for the exchange owner and fixed a potential problem with the automatic distribution of tokens when token transfer consumes an unreasonable amount of gas.Lightcone Relayer v2We have completed all modules for an MVP that supports Loopring 3.0 (beta1) and have identified several areas for improvements. We have also begun to refactor code and design a production-ready architecture. We expect the new architecture will be ready in about two weeks after several scheduled brainstorming sessions among our backend engineers and technical advisors.We are grateful for having help from Chao Ma, the former head of engineering at Alipay International. His expertise and experience are remarkable and his advice and feedbacks to our relayer design are exceptional.ProductsWe have finished the majority of UI layout and styling for our DEX web app. We’ll start to code interactions by using a mock API service in the coming weeks.Operations & Marketing06/09/2019 — LRC was made available on Infinito Wallet, a leading cryptocurrency wallet. LRC users can easily store and send their assets across their mobile and web apps with better speed and security.06/10/2019 — Loopring BD Director, Matthew Finestone, attended Fintech Cadence annual formathon to help teach teams about blockchain, Loopring, with a focus on staking.06/11/2019 — LRC was made available on Kyber Network, the leading on-chain liquidity protocol. LRC will be accessible through KyberSwap and other platforms that are tapping into their on-chain liquidity.06/18/2019 — Loopring launched the first installment of ‘Learning Cryptography’, a series dedicated to learning the primitives that make cryptocurrencies possible! First, we discover finite fields.06/19/2019 — BitKan Smart Trade listed LRC and now supports LRC/USDT, LRC/BTC, and LRC/ETH.06/20/2019 — Loopring’s SNARK-based DEX highlighted in DeFi Weekly.06/20/2019 — Dolomite shares its thoughts on why DEXs are often much faster than Centralized Exchanges06/22/2019 — Loopring hosted a DeFi meetup with MakerDAO, Token Market, Neutrino, Qbao in Shanghai to discuss the future of decentralized finance, STOs, and DAOs.Daniel Wang introducing the performance of Loopring 3.0To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ GitHub: https://github.com/Loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring Bi-Weekly Update — 06/23/2019 was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 06. 23

Learning Cryptography: Fini...

BackgroundLoopring is creating a new “Learning Cryptography” series to educate the wider crypto community about this fascinating field. This series will begin from the basics, and work its way up to the advanced tools that make our scalable 3.0 DEX protocol — which utilises zero-knowledge proofs — possible.IntroductionFor many developers like myself, understanding cryptography feels like a dark art/magic. It’s not that we find math hard, in fact many of us probably excelled in it in high school/college courses.The problem lies with the fact that there’s no resource which balances the mathematics and presentation of ideas in an easy-to-understand manner. Facing this problem first hand, I decided to start this series to consolidate my learning, but also help various developers in their journey of understanding cryptography.After reading through enough of these articles you should be able to understand and grasp more complicated cryptographic primitives in detail such as zero-knowledge proofs, threshold relay signatures and more.Mathematical notation will gradually be introduced but pictures and repeated explanations will be present so you should hopefully be able to follow along!Finite FieldsFinite Fields, also known as Galois Fields, are cornerstones for understanding any cryptography. A field can be defined as a set of numbers that we can add, subtract, multiply and divide together and only ever end up with a result that exists in our set of numbers. This is particularly useful for crypto as we can deal with a limited set of extremely large numbers.To have a finite field you need the following properties:(the doughnut symbol ◦ denotes the remainder after multiplying/adding two elements)Closed — any operation performed with elements from the set returns an element contained in the original set.Associative — if you have (a ◦ b) ◦ c, it’s the same as a ◦ (b ◦ c)Identity — there exists a neutral element (usually 1) such that a ◦ 1 = aInverse — within the set there’s another element such that a ◦ (a)-1= 1Commutative — the order of operations doesn’t matter: a ◦ b = b ◦ aThe most crucial property of a finite field is that it has p^m elements where p is a prime number and m is whatever you choose. A finite field with 11 elements can be defined as GF(11¹). A finite field with 256 elements would be written as GF(28). You can’t have a finite field with 12 elements since you’d have to write it as 22 * 3 which breaks the convention of p^m.With our notation of GF(p^m):If m = 1 then we get prime fieldsIf m > 1 then we get extension fields. This is a key point as it links to what we’re going to do with elliptic curves down the line. When m = 2 we get plenty of super interesting results as well.Prime Field ArithmeticThe notation GF(p) means we have a finite field with the integers {0, … , p-1}. Suppose we have GF(5), our initial set will be {0, 1, 2, 3, 4}. Let’s put this into practice by trying out different operations. Any operations we do below should return 0, 1, 2, 3 or 4 (closure property).Addition:3 + 4 mod 5 = 21 + 4 mod 5 = 01 + 2 mod 5 = 3Subtraction:4–0 mod 5 = 44–2 mod 5 = 23–0 mod 5 = 1Multiplication:0 * 4 mod 5 = 02 * 4 mod 5 = 33 * 4 mod 5 = 2Division/Inversion:4 * 4 mod 5 = 13 * 2 mod 5 = 12 * 3 mod 5 = 11 * 1 mod 5 = 10 * ? mod 5 = 1 — this doesn’t exist!GCD(0, 5) = undefined!It seemed like our finite field was coming along perfectly until we came across the identity for 0. So what do we do? Eliminate it and represent our field as F11* rather than F11. When referring to finite fields as F* it means 0 is not included as part of the set.Extension FieldsUnlike finite fields, whose elements are integers, extension fields’ elements are polynomials. Extension fields = GF(2m) where m > 1These polynomials take the form of:To make it less cryptic, let’s use the example of GF(23) which will result in the equation form:GF(23) = GF(8) which means there’ll be a total of 8 elements in this set.If we write out the elements they’ll have the following values for (a2,a1,a0) where a1, a2 or a0 can only ever be 0 or 1.(a2, a1, a0)(0, 0, 0) = 0(0, 0, 1) = 1(0, 1, 0) = x(1, 0, 0) = x²(0, 1, 1) = x +1(1, 1, 0) = x²+x(1, 0, 1) = x²+1(1, 1, 1) = x²+x+1Putting it all together, GF(23) = {0, 1, x, x², x +1, x²+x, x²+1, x²+x+1}Although this form looks much different to our integers, we can still do our addition, subtraction, multiplication and division and return an element in our set.To keep it short and simple let’s add x²+1 and x²+x+1which gives us:(1+1) x²+x+(1+1)Since 1 + 1 mod 2 = 0, our equation simplifies to x which is contained in our original set!Let’s try another example but a little bit harder.A ◦ B = (x²+1), (x²+x+1)= x⁴+x³+x²+x²+1= x⁴+x³+(1+1)x²+1= x⁴+x³+1Unfortunately, x⁴+x³+1 doesn’t exist in our finite field. So what do we do? Cue irreducible polynomials which are defined as polynomials which can’t be broken down into smaller polynomials (from the power of original polynomial).In the case of GF(23) our irreducible polynomial is x³+x+1. If we divide x⁴+x³+1 with our irreducible prime we ultimately get x²+x which exists in our set — yay!ClosingIt seems quite mundane to go over such a basic concept in detail, but without doing so it can lead to difficulty understanding more advanced concepts down the line, especially when it comes to the generalized discrete logarithm problem and elliptic curve cryptography!About LoopringLoopring is a decentralized exchange protocol utilizing zkSNARKs to bring highly scalable, non-custodial trading to the masses. You can sign up for our bi-weekly update, and learn more at:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ GitHub: https://github.com/Loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Learning Cryptography: Finite Fields was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 06. 18

Loopring Bi-Weekly Update —...

Loopring Bi-Weekly Update — 06/09/2019We managed to complete the development of a new fee model and further optimize the throughput of our zero-knowledge proof-based Loopring protocol and made remarkable progress in relayer implementation.Research & DevelopmentLoopring Protocol v3We finished implementing the new fee model and ring settlement logic in protocol v3. Our previous versions already support charging any tokens as trading fees. The new fee model completely eliminates the fee token concept from the user’s experience and allows a DEX to charge a percentage of the tokens traded in matched orders. This new fee model not only allows us to closely match the user experience on centralized exchanges (taker/maker orders, market orders, etc), it also improves the throughput of the protocol: the maximum throughput with on-chain data availability increased from 160 TPS (trades per second) to 200 TPS👊👊👊, and the maximum throughput without data availability increased from 525 TPS to 660 TPS👍👍👍.We have also added better testing for the data availability, ensuring that we can restore the exchange’s state by merely using the data published on Ethereum. We now also have JavaScript code that can sign the protocol requests, making it much easier to integrate with actual products. All tests were updated to make use of it.Loopring 3.0 beta2We expect to reach the 3.0beta3 milestone by August 31st. 3.0beta3 will be the first version we will make available for third-party security auditing and public testing. It will include quite a few bug fixes and performance optimization.Oedax Protocol v1There is no update for Oedax.Lightcone Relayer v2Over the past two weeks, we have implemented more tests to verify various components in Lightcone for supporting Loopring v3. We have also refactored all request handling code for better performance. The most challenging parts of the system are done.In our tests, Lightcone is now able to assemble 10,000 trades into one single Ethereum block 💪💪💪.ProductsWe are working on a prototype of a DEX web app to allow people to experience Loopring 3.0beta3. We’ve made some good progress on both the UI and the JavaScript code.Operations & Marketing05/27/2019 — Loopring and TokenClub co-hosted a live AMA to Loopring Chinese community, talking about Loopring Protocol 3.0.05/28/2019 — TokenMarket, the blockchain-based global investment platform, announced its partnership with Loopring to power their security token exchanges. The collaboration will accelerate security and transparency in the US$222 billion digital asset trading market.05/30/2019 — LRC was made available on the DutchX trading protocol, and the dxDAO launched. Anyone can earn voting power (reputation) within the DAO by locking your LRC. Loopring participated in a big way.We locked 50 million LRC to support dxDAO06/03/2019 — Loopring partnered with MarsMedia, a professional media platform.06/04/2019 — Loopring CEO, Daniel Wang, was interviewed by Defiprime, talking about Loopring Protocol and the future of decentralized exchanges.06/04/2019 — Loopring intern, Jack Goldstein, wrote a piece about his experience at Loopring and an intro to the protocol.06/05/2019 — Loopring BD Director, Matthew Finestone, spoke with Neil Hughes on the Tech Blog Writer Podcast, explaining DEXs, Loopring, and how the next batch of users may be on-boarded.06/07/2019 — Matthew attended Scaling Ethereum; 3 great days of research and discussions on how Ethereum will scale at the base layer and beyond.Scaling Ethereum, TorontoTo stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ GitHub: https://github.com/Loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring Bi-Weekly Update — 06/08/2019 was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 06. 09

How to Use LRC to Gain Repu...

How to Use LRC to Gain Reputation In dxDAOPreface: What is dxDAO?DAOA DAO, short for decentralized autonomous organization, is an organization that operates entirely on the blockchain. Unlike a normal organization, a DAO acts completely autonomously, making decisions based on the rules enforced in it’s programming rather than the decisions of a central group of people. This also allows for the information pertaining to the organization to be stored digitally across many different machines rather than in one centralized location.dxDAOThe dxDAO is an experiment in creating what is known as a super-scalable organization. This is an organization that gets more effective at coordinating the more it grows. It accomplishes this with it’s governance framework, known as Holographic Consensus.How dxDAO WorksThe dxDAO uses a voting system to make it’s decisions. In this system, users vote on proposals raised by other users. They do this with an accumulated voting power known as reputation. Before the voting process begins, the total amount of reputation is set. This initial total is 1 million reputation. Then, the first phase of the system, the vote staking period, begins. Users of the dxDAO compete for reputation in various ways, such as locking ether and other tokens in the systems, registering magnolia tokens with the system, or bidding with GEN tokens. The vote staking period lasts for 30 days, and afterword it moves into the second phase, reputation distribution. In this phase, the total reputation will be distributed amongst users autonomously based on the metrics of each category of earning reputation. After a 2 week pause, the final phase, the governance phase, will begin. In this phase, the dxDAO will accept proposals from any user in the system regardless of repuation, and users can begin to vote on these proposals using the reputation associated with their accounts.Part 1: PrerequisitesStep 1:Before you begin, you need some kind of Ethereum wallet. Though many are compatible, it is recommended you use one of the following 2:Gnosis SafeMetamaskNote: Of the two, Gnosis Safe is more recommended, as it is planned to provide more functionality in the future.To download these wallets, simply go to their respective websites, download the browser extension, and then follow the necessary instructions to set up a wallet.It is also worth note that both wallets may not be used at the same time. So if you want to use Gnosis Safe and have Metamask installed, you need to turn the Metamask extension off in browser settings, and vice versa.Step 2:Next, make sure you have a token that is compatible with dxDAO in your wallet before you start. The following tokens can be used in dxDAO:Ether (ETH)GEN tokensMagnolia (MGN) tokensAny token whitelisted on the DutchX (such as LRC)Part 2: Logging onStep 1:Go to https://dxdao.daostack.io/ and click the link at the top that says “Click here to take part in the dxDAO”Step 2:A participation agreement will pop up the first time you use the app. Read it, then check all the boxes at the bottom and click “continue” to indicate agreement. You can also click download as a pdf to download the agreement for later reference.Step 3:Allow the app time to connect to your wallet. Once you reach the main page, scroll down to find vote staking functionality.There are currently 5 ways to stake your vote and earn reputation in the dxDAO:Lock ETH — Locks a specified amount of Ether from your wallet in exchange for reputationLock Tokens — Locks a specified amount of a given DutchX compatible token (such as LRC) from your wallet in exchange for reputationRegister MGN — Gain reputation for having Magnolia tokens in your walletBid GEN — Bid GEN tokens on one of 10 auctions in order to gain reputationDAO Storytelling — Reputation will be awarded to users who raise the most awareness for dxDAOPart 3: Locking LRCOverviewBy locking a token, you give up the opportunity to sell or transfer the token in exchange for reputation in the dxDAO. At the end of the vote staking period, 30%, or 300,000, of the total initial reputation will be given out those who lock tokens. You will be given a proportion of this 300,000 reputation based on how your personal reputation score compares to others. The personal reputation score for this category is calculated as:Amount of token × Locking duration in days × Price of token at the time of lock“Price of token at the time of lock” represents the price of the token in the DutchX trading protocol at the time of the lock transaction.This function works for any token whitelisted on the DutchX trading protocol. In this guide, we will be demonstrating this functionality on the Loopring token (LRC).Step 1:Click the “Lock Tokens” drop down on this page to bring up the selection shown below.Step 2:Click the “Select a Token to Lock” drop down and pick LRC from the list.Step 3:Input the amount of the token you want to lock and the duration you want to lock for. Only lock a token you don’t plan on trading in the near future, as you will be unable to use the amount locked in any transaction until the lock duration is up. Once you have input the correct amount, click “Submit”.Note: You can only lock a token for 30 days at mostStep 4:A popup from your wallet will come up to approve the transaction. Click “Confirm” on this window to continue with the transaction.Step 5:Wait for this transaction to complete, then another transaction popup from your wallet will come up to confirm the contract. Click “Confirm” on this popup as well.Post-CompletionOnce locked, the amount you have locked will appear on the menu under the submission form.After the vote staking period ends on June 28th, remember to come back and collect the reputation earned from locking your tokens.Note: You must manually unlock your tokens by clicking the “Release” button once the lock duration ends in order to use them again, so remember to come back to reclaim your tokens!Part 4: Additional ResourcesFor additional info on the dxDAO, visit the following links:dxDAO WhitepaperdxDAO WalkthroughTo stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en ⭑ Discord: discord.gg/KkYccYp⭑ GitHub: https://github.com/Loopring⭑ Kakao: open.kakao.com/o/gJbSZdFHow to Use LRC to Gain Reputation in dxDAO was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 06. 06

A Beginner’s Guide to Loopr...

Just one year ago, I knew little about blockchain technology, and I didn’t think that I needed to know much about it. My knowledge of blockchain consisted only of a vague understanding of bitcoin and cryptocurrency as a whole. After I was accepted as an intern at Loopring a while back, I was pushed to go beyond my technical comfort zone and explore the blockchain environment.Right away, I was given study material to help build my base understanding of Loopring and the blockchain technology that it is based on. After starting at Loopring, I have been given even greater opportunity to learn. While my understanding of blockchain is still new, it has improved considerably since my first day at the company.In this post, I would like to pass on to you what I have learned about blockchain technology, how Loopring fits into the blockchain space, and how Loopring develops it’s blockchain protocol.BlockchainBlockchain’s key advantage is its decentralized method of record keeping. This is accomplished with the use of key cryptography, distributed networks, and a protocol. First, users are identified with a combination of a public key and a private key. These keys combine to form what is known as a digital signature, which is used to prove ownership. This keeps the blockchain secure. Next, the blockchain operates on what is known as a distributed network. Rather than using a centralized database, the system distributes the database to each user in the system. This keeps the blockchain decentralized. Lastly, each user in the blockchain system adheres to a specific program, called a protocol. This keeps the blockchain consistent. These three components, along with other relevant information about a transaction, are compiled to create a block which is broadcasted to the network. The blocks in the network are then linked, or chained, together, hence the term blockchain.With blockchain, you can accomplish powerful things. It’s most notably used as a distributed ledger for bitcoin and other cryptocurrencies. But there are other useful business applications. For example, Walmart and IBM are experimenting with using the technology in order to create a more secure and traceable supply chain record.Ethereum applies the blockchain concept more generally, decentralizing the process of computing in general. Using the Ethereum platform, developers can program the functionality of any given transaction using what is known as a smart contract. With multiple smart contracts, developers can create entirely decentralized applications, known as dApps.LoopringLoopring builds upon the Ethereum blockchain in order to provide a decentralized method of exchanging digital assets. In the market of decentralized assets such as cryptocurrencies, trading often occurs from a centralized source. This use of central exchanges creates concerns for the security, transparency, and liquidity of the exchange, as you have to trust a third party with storing you assets temporarily. Loopring aims to address these concerns by providing a protocol for decentralized exchanges. As of now, Loopring has already staked $55 million into DEX style smart contracts. By decentralizing exchanges, users keep their assets up until the point where the trade occurs. Additionally, the Loopring protocol uses techniques such as ring matching, dual authoring, and zkSNARK proofs in order to ensure it’s exchanges are truly secure, liquid, and transparent.Ring matching is Loopring’s method of matching multiple orders together. Once an exchange order is placed, the protocol will match you with another order in the network to complete the exchange. Through what is known as an order ring, the protocol can match up to 16 orders in a circular transfer of assets. Compared to the single asset transactions of traditional exchanges, assets are much more liquid, as users are more likely to get the price they want for their assets.Dual authoring is Loopring’s patented method of authorizing orders. The dual authoring system splits up authorization into two different levels, one for settlement and one for mining. For each order, a unique public and private key will be generated for use in authorization. These keys will be used for verification by miners, but the private key will not be shared in the transaction on chain. The process is designed to combat the prevalent issue of front-running, where orders are stolen from the pending order pool. By keeping transaction private keys on a need to know basis, dual authoring allows the protocol to maintain security while still allowing orders to be sharable.ZkSNARKs are a type of zero-knowledge proof that Loopring is implementing in their protocol’s 3.0 version. ZkSNARKs use quadratic equations to verify a transaction without revealing the underlying information of the transaction. With the use of zkSNARKs, less data will need to be stored on the blockchain. Not only will this lead to very significant improvements in transaction throughput and price, as less data to store means more room in each individual block, it will also improve transaction security, as sensitive information can be kept offline.DevelopmentLoopring’s development is open source, so anyone can follow along with development on Github. A few different technologies are used to build the protocol. So far, I have gotten experience with npm, JavaScript, and Solidity.Npm is used to download and install the JavaScript frameworks used in the development of the Loopring protocol. I’ve used it to download and test frameworks such as React and Truffle, and I’ve also gotten a bit of experience troubleshooting it when installation fails.JavaScript is used to develop the company’s web apps as well as helper code used in the protocol. I’ve been refreshing myself on JavaScript in order to assist in developing a minimum viable product for Loopring’s 3.0 protocol.Solidity is the primary language used to develop Ethereum smart contracts, and is used heavily in the implementation of the Loopring protocol. I’ve begun to learn the language by creating beginner smart contracts and tests.The Next StepsSince starting my internship at Loopring, I’ve done a lot of research on the company, the market it surrounds, and the technology it uses. Overall, I have learned a lot since I started working at Loopring. While there is still more for me to learn, I would like to start converting my knowledge into experience soon. Be it assisting in development, communications, or teaching, I believe there are plenty of ways I can help out here at Loopring. With more experience, I can really push myself to become much more proficient in blockchain than I ever thought I could be.And if you’d like to continue to learn about Loopring and it’s development, there’s plenty of ways to do so. The Medium page has been one of the most helpful resources for me in my learning, especially for highlighting features of the protocol. There’s also a lot of helpful information on the website such as the protocol’s whitepaper and additional technical information. And be sure to follow the subreddit to keep up with news on the organization.Thank you for reading, I wish you luck in your future blockchain endeavors!To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ GitHub: https://github.com/Loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)A Beginner’s Guide to Loopring: My Experience as an Intern was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 06. 04

TokenMarket to Advance its ...

TokenMarket to Advance its Security Exchanges via Loopring PartnershipTokenMarket, the blockchain-based global investment platform, today announces its partnership with Loopring, the protocol for decentralised token exchanges. The collaboration will accelerate security and transparency in the US$222 billion digital asset trading market.The two companies will work together to launch Loopring Protocol 3.0 within TokenMarket’s upcoming decentralized securities exchanges, located in Europe and the Middle East. While current decentralized exchange speeds allow approximately two trades per second to be settled on the Ethereum blockchain, Loopring Protocol 3.0 allows up to 525/sec by using zero-knowledge proofs, dramatically increasing throughput and improving the speed and cost of TokenMarket’s decentralized exchanges.Founded in 2017, Loopring is an open-sourced protocol for building decentralized exchanges and supporting infrastructure. It has been designed to give users and developers multiple benefits, such as non-custodial settlement, order sharing, anti-front running, and the ability to be deployed on multiple smart contract platforms.Protocol 3.0 has focused on providing scalability without sacrificing the security guarantees offered by public blockchains. It does so by ensuring that only a small amount of information requires on-chain verification, with most activity being compressed into proofs. It thereby allows decentralized exchanges to offer better safety, with comparable speeds previously only found on centralized exchanges.Upon the announcement, TokenMarket CTO and Co-founder Mikko Ohtamaa stated:“Using Loopring Protocol 3.0 will enable our users to have even more protection on our decentralized security token exchange. The groundbreaking protocol Loopring has developed, combined with our decentralized platform, will give users the freedom that centralized exchanges simply do not have. I am excited to be working closely alongside the Loopring team as things develop.”Concurrently, Loopring Founder and CEO Daniel Wang said in a statement:“Our mission is to support the future of value exchange, and we’re thrilled that TokenMarket has chosen to integrate and build upon Loopring to power their platform. TokenMarket has ambitious plans regarding security token trading venues, which is a sector Loopring has developed infrastructure for since version 2 of our protocol. We’re optimistic their experienced team will excel.”This release originally appeared here.About TokenMarketTokenMarket is a global investment platform that utilizes its blockchain-based platform to enable rapid growth companies to raise capital faster. The platform has assisted over 30 of the most innovative blockchain companies raise over £240 million in total, issuing digital tokens to over 250,000 investors. TokenMarket has achieved this by providing global, everyday investors access to early-stage opportunities alongside VCs and Angel investors. Further powering the platform are the upcoming securities exchanges in Malta and Dubai, encouraging faster liquidity in the market for security token offerings.For more information visit https://tokenmarket.net/.About LoopringLoopring Foundation is a blockchain research organization focused on decentralized trading protocols. The open-source Loopring Protocol provides a fundamental building block for non-custodial exchanges (DEXs) and other applications that incorporate trustless token trading. Loopring 3.0 leverages zero-knowledge proofs, allowing for significant throughput increases while maintaining the security guarantees of the Ethereum blockchain. Loopring also offers an auction protocol called Oedax (Open-Ended Dutch Auction Exchange).For more information on the Loopring protocol, please visit: https://loopring.org/ and https://github.com/Loopring.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ GitHub: https://github.com/Loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)TokenMarket to Advance its Security Exchanges via Partnership with Loopring was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 06. 01

Loopring Bi-Weekly Update —...

Loopring Bi-Weekly Update — 05/25/2019Going to bed at night saying we’ve done something wonderful, that’s what matters to me.- Steve JobsWe are doing something wonderful with Loopring v3.Research & DevelopmentLoopring Protocol v3We have been working on a new fee model and a staking system for Loopring v3. These are being developed specifically for the strength of Loopring v3. Some details still need to be worked out, but the new fee model will be more flexible and efficient; while the staking system will introduce even more attractive utilities for LRC.We have a working implementation of the new fee model, and the efficiency benefits are clear. Some changes may still need to be done, so do note that these are preliminary results.We’ve further improved the performance of Loopring v3: The maximum throughput with data availability increased from 120 TPS (trades per second) to 160 TPS, and the maximum throughput without data availability increased from 450 TPS to 525 TPS. This of course also means a reduction in cost per settlement.Oedax Protocol v1We have also finished the implementation of Oedax v1, Loopring’s Open-End Dutch Auction eXchange protocol. Oedax will be further tested and deployed once we complete our new fee model and staking implementation. For those who are interested in building a crypto auction dApp, Oedax is a cool and easy protocol to integrate, with several benefits.Lightcone Relayer v2We have been very focused on the prototyping of Lightcone v2, the relayer to support Loopring v3. Over the last two weeks, we’ve made some nice progress — now the zero-knowledge proof generation and verification for the on-chain deposits, on-chain withdrawals, and off-chain settlements all work as expected (note that we still have three more types of requests to handle).Request handling, including building blocks, block proof generation and verification, is the very core of Lightcone v2. This still requires extensive testing and optimization, and that is what we will work hard on over the coming weeks.ProductsWe’ve stopped the development of any user-facing products to focus on protocol optimization and backend technologies to build up our core competency. Product-related work will resume once Loopring v3 and Lightcone v2 get closer to production-readiness.Operations & Marketing05/12/2019 — Loopring CEO, Daniel Wang, presented zkSNARK-based v3 at Building The New Web NYC.https://medium.com/media/e8eba576a653eeae5486b689da0f9179/href05/13/2019 — Loopring team attended Consensus 2019.05/14/2019 — Loopring CEO, Daniel Wang, talked about security token implementation on DEX on a panel at Polymath Connect.05/16/2019 — Loopring BD Director, Matthew Finestone, presented the performance of Loopring Protocol v3 at New York Blockchain Week.05/17/2019 — Loopring sponsored ETHNewYork, an Ethereum hackathon held by ETHGlobal that brought Ethereum’s best and brightest to Brooklyn.05/19/2019 — Loopring CEO, Daniel Wang, gave two talks on scaling DEX with zkSNARKs at ETHNewYork.05/20/2019 — Loopring CMO, Jay Zhou, attended a blockchain meetup in Shanghai to discuss DeFi (Decentralized Finance).05/22/2019 — Decrypt Media publishes “How Loopring and 0x are competing to build the first serious DEX”.05/22/2019 — Lumi Wallet lists LRC and writes a blog post about Loopring tech powering decentralized exchanges.05/24/2019 — Loopring sent the new LRC tokens to users who had them locked in the IDEX smart contract.05/24/2019 — The Information writes about Dolomite.io, a powerful DEX built atop the Loopring Protocol, getting ready to close a significant seed round and launch in the next few weeks.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ GitHub: https://github.com/Loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring Bi-Weekly Update — 05/25/2019 was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 05. 25

Loopring at ETHNewYork

Loopring is excited to sponsor ETHNewYork, an Ethereum hackathon held by ETHGlobal that is sure to bring Ethereum’s best and brightest to Brooklyn on May 17–19! We will be requesting 2 challenges, with 2 prizes totalling $4250 in LRC.Besides the prizes, Loopring founder/CEO, Daniel Wang, will be giving a talk on how we use zkSNARKs to scale v3 of our DEX protocol.Loopring Challenge #1: Build an Oedax UIPrize: $2500 in LRCLoopring has historically and predominantly been an order-based exchange protocol — meaning we build infrastructure to support building orderbook-based exchanges. Binance or Nasdaq are examples of order-based exchanges.While that is still the case, we’ve also designed and developed an auction-based protocol: Open-Ended Dutch Auction Exchange, or, Oedax. Auctions don’t function like orderbook-based models, and can allow for certain benefits such as trading less liquid assets, and more easily obtaining price discovery.Compared to the more common dutch auction model, this open-ended dutch auction allows both sellers and buyers to participate in an auction after the auction starts, so Oedax auction’s final settlement volume is not restricted by the initial deposit of either token and can potentially be much larger than a dutch auction. Oedax is well-suited for large trades and is market-making friendly.You can and should read full details about Oedax design here, and find the repo here. You can also find a cool curve UI here to experiment with.https://oedax.loopring.org/curve.htmlAs for the challenge, we simply ask for you to create a web UI to display auctions, integrate with MetaMask, and allow users to participate in open auctions. Prize: $2500 in LRC.For details on how to get started with this task, see here: https://github.com/Loopring/protocols/blob/master/docs/hackathon.mdLoopring/protocolsLoopring Challenge #2: Write an Operator contract that allows multiple independent sub-operators to work together in v3’s zkSNARK-based DEXPrize: $1750 in LRCAs we said above, Loopring’s bread and butter is powering high-performance orderbook-based DEXs. This became even more apparent with the recent release of Loopring v3, where we use zkSNARKs to allow DEXs to scale without sacrificing security. The throughput improvements have been remarkable.Requests (ring settlements, deposits, …) are bundled into blocks and these blocks are committed and verified on-chain. Data is stored in Merkle trees, but only the Merkle tree root is actually stored on-chain. For this to work state changes need to be done sequentially: we need to start from a known old state (the Merkle root stored on-chain) and go to a new state (the new Merkle root). The entity that is responsible for creating, committing and proving blocks is called the operator.The operator can be a single entity. In that case, this single entity is responsible for creating all the blocks and generating all the proofs. While this doesn’t have any impact on the security of the protocol there are still good reasons for allowing multiple operators to create and prove blocks:The proof generation is computationally heavy. Because committing blocks and verifying blocks are done independently of each other proofs can be generated in parallel by the different operators.For off-chain requests, the operator can choose which requests to include (or not to include) in a block. In other words, the operator can censor any request he wants for any reason. When anyone can become an operator an operator can still try to censor requests but another operator will be able to include the request in a block.Multiple operators make the protocol more decentralized. A single operator also means a single point of failure.Once the operator has committed a block he needs to do the following:For all blocks types: Generate a proof and verify the proof on-chain. If the operator fails to do so the operator is punished by burning the complete stake.For withdrawal blocks: After the block is verified all withdrawals need to be distributed. If the operator fails to do this in time he is punished by burning a part of the stake (depends on the number of withdrawals).For deposit and on-chain withdrawal blocks: Once the block is finalized the block fee can be withdrawn.If a sub-operator does not verify a block in time the block needs to be reverted.As for the challenge, we ask you to write an Operator contract that allows multiple independent sub-operators to work together. Prize $1750 in LRC.For further detail on the requirements of this challenge and how to get started, please see here: https://github.com/Loopring/protocols/wiki/Operator-ContractLoopring/protocolsThat’s it for now! We can’t wait to see what you hackers #buidl, and to simply meet all the great developers, enthusiasts, and projects that will make this event unforgettable — and Ethereum undeniable!If you have any questions about the challenges, please feel free to find us at the event, email daniel@loopring.org, or join any of the groups below. We’ll be using discord.gg/KkYccYp as a primary place for support. See you soon!To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us at:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ GitHub: https://github.com/Loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring at ETHNewYork was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 05. 17

Loopring Bi-Weekly Update —...

Loopring Bi-Weekly Update — 05/12/2019Major protocol 3.0 improvements, LRC token contract upgrade completed, and Blockchain Week New York kicks off.Research & DevelopmentProtocolsWe have optimized Protocol 3.0 in two main aspects:Better storing the data needed for on-chain data-availability;Withdraw distribution optimizationFirst of all, we have implemented a much more efficient way to store the data needed for data-availability. The current throughput with on-chain data availability has been increased quite substantially, from 80 trades/second, to 120 trades/second. The gas fee of each transaction has also been reduced. Given on-chain data availability, the main bottleneck for the throughput is the size of data.Additionally, we have implemented withdraw distribution optimization. It is usually done by operators. For those blocks having a lot of withdrawal operations, efficiency and flexibility can be improved by reducing gas. If withdraw operations are distributed in multiple transactions, the system can support larger block size. If ETH transactions can be created with a lower gas fee, the fee in an operator can also be reduced.We have also completed LRC token contract upgrade in the past two weeks. LRC now lives here: 0xBBbbCA6A901c926F240b89EacB641d8Aec7AEafD. We have mapped LRC to all holders including wallets and centralized exchange platforms. We’ve also mapped LRC to a new Long Term Incentive Program at 0xC8Fcc48D1454a83589169294470549A2e1713DeC.RelayerWe have completed a minimum viable product of Lightcone Relay 2.0 — with compatibility for Loopring protocol 3.0. We are testing functionalities now.ProductsWe have finalized the new UI design and completed the first version of the visual elements. We have implemented Flutter animations in our apps. We have completed setting gas view, LRN airdrop view and other views. We have also implemented a performance optimization when calling Flutter code from native code. Before the optimization, it sometimes had 0.2 seconds of latency to load a Flutter view. Given the optimization, the Flutter view will be pre-loaded and it won’t have any latency.Operations & Marketing04/29/2019 — Loopring Chinese telegram group has over 10,000 members.05/07/2019 — Loopring CMO, Jay, speaking on blockchain and Loopring technology to Suffolk University MBAs, getting more talent acquainted with the blockchain.05/08/2019 — Looping has completed LRC token contract upgrade. LRC now lives at: 0xBBbbCA6A901c926F240b89EacB641d8Aec7AEafD.05/08/2019 — Loopring has mapped LRC to a new Long Term Incentive Program at 0xC8Fcc48D1454a83589169294470549A2e1713DeC.05/08/2019 — Loopring BD director, Matthew, was interviewed by BlockchainReporter, speaking on Loopring protocol 3.0, zero-knowledge proofs (ZKPs) for scalability and the research with PwC.05/09/2019 — Loopring joins Unitimes, a vertical Ethereum community platform focusing on Ethereum-based knowledge, latest news, use cases and community interaction.05/10/2019 — Loopring joined Odaily anniversary event.05/12/2019 — Loopring founder, Daniel Wang, speaks at Tokenized Assets about how DEXs will finally be able to compete with CEXs at the commercial level due to Loopring 3.0 scalability advances.Tokenized Assets Conferencebody[data-twttr-rendered="true"] {background-color: transparent;}.twitter-tweet {margin: auto !important;}This is my single best slide over the years since I jumped into crypto. Keep #BUIDL-ing #Loopring — @daniel_loopringfunction notifyResize(height) {height = height ? height : document.documentElement.offsetHeight; var resized = false; if (window.donkey && donkey.resize) {donkey.resize(height); resized = true;}if (parent && parent._resizeIframe) {var obj = {iframe: window.frameElement, height: height}; parent._resizeIframe(obj); resized = true;}if (window.location && window.location.hash === "#amp=1" && window.parent && window.parent.postMessage) {window.parent.postMessage({sentinel: "amp", type: "embed-size", height: height}, "*");}if (window.webkit && window.webkit.messageHandlers && window.webkit.messageHandlers.resize) {window.webkit.messageHandlers.resize.postMessage(height); resized = true;}return resized;}twttr.events.bind('rendered', function (event) {notifyResize();}); twttr.events.bind('resize', function (event) {notifyResize();});if (parent && parent._resizeIframe) {var maxWidth = parseInt(window.frameElement.getAttribute("width")); if ( 500 < maxWidth) {window.frameElement.setAttribute("width", "500");}}05/12/2019 — Daniel presents the technical details about zkSNARKs-based Loopring 3.0 at Building The New Web NYC.BTNW NYCLoopring will attend Consensus 2019 and many other New York Blockchain Week events. The team will join some panels and keynote speeches throughout. We will also sponsor and provide challenges/prizes at ETH NY hackathon on May 17–19. Feel free to reach out/ask questions via any of the channels below to meetup, or send to foundation@loopring.orgTo stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ GitHub: https://github.com/Loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring Bi-Weekly Update — 05/12/2019 was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 05. 13

LRC Token Upgraded

We have completed LRC token contract upgrade. LRC now lives at: 0xBBbbCA6A901c926F240b89EacB641d8Aec7AEafD (lrctoken.eth).LRC token remains ERC20 compliant and now supports a “burn” function that will be used by the Loopring Protocol and the new Oedax auction protocol to burn LRC as the protocols are being used. The total LRC supply will decrease to reflect these burns.We’ve also mapped LRC to a new Long Term Incentive Program at 0xC8Fcc48D1454a83589169294470549A2e1713DeC (longterm.lrctoken.eth). Those who have not claimed their tokens before block #7715000 can claim the same amount of LRC from this new contract.We have mapped LRC to all holders including wallets and centralized exchanges platforms. More than 50K transfers have been made, some low-value transactions are still pending.We will lock 20% of LRC’s total supply into a new Ice Box contract soon (most likely tomorrow). This was planned but we didn’t have time to get it done today. We’ll keep our community posted.Once again, we thank all the supporting exchanges, wallets, etc! We couldn’t have done this without you by our sideTo stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ GitHub: https://github.com/Loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)LRC Token Upgraded was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 05. 07

Loopring Bi-Weekly Update —...

Loopring Bi-Weekly Update — 04/27/2019We open sourced the Lightcone relayer — a Loopring backend matching system. A relayer is the off-chain component that hosts orders, matches them, and submits them to the Loopring protocol smart contracts for settlement.We also provided more info for the LRC token contract upgrade scheduled for May 8th, 2019. Holders and supporting apps/exchanges, please read it!Research & DevelopmentProtocolsThe focus for Protocol 3.0 development was mainly on testing, more than doubling the number of tests. More excitingly, we’re also developing a much more efficient way to store the data needed for data-availability.The current method is quite wasteful in how the data is stored on the blockchain, and is the main bottleneck for the throughput with on-chain data availability. This enhancement we’re working on is still in development but we estimate that the throughput with data-availability will increase from 60–80 trades/second to 100–130 trades/second.Another thing we’re looking at improving for protocol 3 is our token economics. Protocol 3, using zkSNARKs and introducing new ‘roles’ to the network, is in some ways drastically different from our previous protocols. This gives us the opportunity to make sure everything works together, and use LRC to optimize towards our goals of high liquidity, security, among others.In the meanwhile, our Oedax implementation is close to being code-complete. Over the next week or two, we’ll perform one more round of internal code review before we open source it.RelayWe’ve completed all core functionalities in Lightcore Relay after several months of development. We’ve also completed a substantial amount of unit tests and integration tests. Thus, we open sourced Lightcore Relay 1.0!You can read a blog post about it here, or check out the codebase here.Anyone or any project can use/fork Lightcone as a matching engine for exchanges built with Loopring Protocol 2 on Ethereum, or on sidechains.As mentioned, we’ve made incredible progress on Loopring Protocol 3 using zkSNARKs, and we believe Protocol 3 will bring a much better, more scalable trading experience, and it has become our top priority. Thus, we are now focusing on Lightcone Relay 2.0, which is being built to support Protocol 3. Given Lightcone 1.0’s strong base, we have already completed the majority of modules for 2.0 and will start testing the minimum viable product very soon.ProductsWe have finalized a UI for Oedax — Open Ended Dutch Auction Exchange — which, as an auction-based market (as opposed to orderbook-based), will be used in token sales.We are using the Flutter framework, which will help us improve the efficiency of app development and make a unified UI of iOS and Android easier. We have refactored Flutter code, making it easy to use. We have integrated Flutter-Redux for better application state management. With Flutter-Redux, Flutter development will be similar to React development. It also allows developers to learn Flutter development easier. We have written several UI views with Flutter, including address QR code view, backup mnemonics view, order detail view, and others. We have finalized message channels between Flutter and native apps, and how to use gRPC in iOS, Android and Flutter. We are working on Flutter animation now.Operations & Marketing🥁IMPORTANT: we’ve released further information and guidance on the upcoming LRC token contract upgrade, happening May 8th, 2019 🥁04/16/2019 — LRC is made available on SWFT Pay, a global currency cross-chain wallet and payments platform.04/23/2019 — Kriptomat and Loopring are celebrating their collaboration with a 15,000 LRC token giveaway.04/23/2019 — Qbao Network and Loopring co-host treasure hunt for mnemonic words. The event will be open from April 23rd, 2019 to April 30th, 2019. Read more on the official blog.04/25/2019 — Loopring published an article in AsiaGlobal Online about our findings from our stablecoin research report with PwC.04/25/2019 — Loopring open sourced our implementation of a fully functional Loopring backend: Lightcone relayer version 1.0.04/26/2019 — LRC Token Contract Upgrade Scheduled on May 8th, 2019 [Beijing Time], LRC token holders should read this post on what they need to do (or not do) ahead of the upgrade. Wallets, exchanges, and other applications that support LRC should also read it, please 🙏04/26/2019 — Coinplan initiates support for LRC in their Alliance token portfolio, and releases a spotlight overview on the Loopring Protocol.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ GitHub: https://github.com/Loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring Bi-Weekly Update — 04/27/2019 was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 04. 27

LRC Token Contract Upgrade ...

As previously announced, we have scheduled an upgrade for the LRC token smart contract on May 8th, 2019 [00:00 to 24:00 Beijing time]. Please read on to see what LRC holders may need to do.LRC will remain an ERC20 token: the new token contract is needed to allow LRC to take on additional uses and functionality within our newer fee model. Namely, the model allows trading fees to be paid in any ERC20 token, but ultimately burns a small amount of LRC for all trades executed over the Loopring network. We’re excited by this fee flexibility, and by the shift to a deflationary supply of LRC. It will also lend itself to further use in protocol v3, such as staking.This post provides guidance on what you need to do (or not do) with your LRC tokens ahead of the upgrade.What LRC holders may need to doLRC held in ‘normal’ Ethereum account addresses will be programmatically mapped out, one to one, guaranteed. There is nothing for users to do in this case. You will have the same amount of new LRC. [Note: these normal account addresses are sometimes referred to as ‘externally owned addresses’.]This means if you hold LRC in a normal Ethereum account address, the likes of which can be accessed by Metamask, MEW, MyCrypto, Ledger, Trezor, UP Wallet, etc, there is nothing to do. These all interface with Ethereum addresses that you yourself hold the private key to.LRC held in contract addresses, for example, multi-sig addresses, will be taken care of case-by-case and are not guaranteed to be mapped out [The Long Term Incentive Program (LTIP) is an exception, see below.]This means if you hold LRC in some type of ‘non-normal’ address, such as the smart contract of a lending protocol for example, you need to withdraw it to a normal address, as above, that you have the keys to.LRC held on exchanges, and custodial wallets, basically depend on them to cooperate or not, and are a case-by-case basis. We have spoken with as many exchanges and wallets as possible and the following companies have confirmed support for the upgrade. They will honour the mapping for you. In this case, there is nothing for users to do.Exchanges automatically supporting the LRC upgrade: Binance, Bitfinex, Bittrex, CoinMex, Gate.io, OKEx, Bitbns and KriptomatIf you hold LRC on an exchange that’s not on the list, you can reach out to them to learn if they will support the upgrade. You can then refer them to us, or this post. Support is relatively easy, and much appreciated. If they won’t, you need to withdraw LRC to your own address, or to supporting exchanges/wallets.Just to reiterate one more time: if you hold LRC on an address where you know your private key, or mnemonic seed, you are good — nothing to do. If you do not — and if it is not held on one of the above listed exchanges — you should move your LRC.Exception: LRC in the Long Term Incentive Program (LTIP)For users with LRC in the LTIP, you don’t need to do anything. We will automatically map all balances, and users will have the exact same amount of new LRC in the program. You can then withdraw it, just like before. It is recommended that you do not perform any withdrawals close to the May 8th upgrade to avoid complications. The new LRC Long Term Lockout Plan (LTIP2) address will be announced as soon as the LRC mapping is completed.General NotesThe contract upgrade will take place on May 8th, 2019, 00:00–24:00 (Beijing Time), just less than two weeks away.As an abundance of caution, we suggest users do not move LRC balances starting from 6 hours before it begins (May 7th, 2019, 18:00), until it completes (May 8th, 2019, 24:00).The new token contract for LRC is: 0xBBbbCA6A901c926F240b89EacB641d8Aec7AEafDThe current (old) token contract for LRC is: 0xef68e7c694f40c8202821edf525de3782458639fThe old address will effectively become ‘expired’. There is nothing for you to do with this LRC, and you should not send it to exchanges — it will be unrecognized. Only the new LRC address will be recognized by exchanges beginning on May 9th, 2019.For a short period after the upgrade, some wallets may not show the upgraded token, so you may not see the new LRC in your wallet. If that’s the case, you can confirm your new LRC balance by checking your address on a block explorer such as etherscan.io; or manually adding the new LRC contract address to the wallet: 0xBBbbCA6A901c926F240b89EacB641d8Aec7AEafD.The new LRC token will remain a verified ERC20-compliant token. After the upgrade, we will redirect lrctoken.eth to point to the new address.Reach out if any questionsIf you’re an exchange, wallet, block explorer, or any other (d)app that supports LRC, first of all, thank you :). Second of all, if you haven’t received communication from us, please act accordingly to the above if you’d be so kind, and reach out to us with any questions at foundation@loopring.org.For users, please feel free to contact us with any questions. We are happy to help guide you. The upgrade is 12 days away; we will remind the Loopring community again as the date approaches.We look forward to this small step on Loopring’s path to underpin the trustless token trading systems of the future!To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg ⭑ Reddit: reddit.com/r/loopringorg ⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese) ⭑ Discord: discord.gg/KkYccYp ⭑ GitHub: https://github.com/Loopring ⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)LRC Token Contract Upgrade Scheduled on May 8th, 2019 [Beijing Time] was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 04. 26

Loopring Has Open Sourced T...

Today, we have open sourced our implementation of a fully functional Loopring backend: something we call Lightcone relayer version 1.0. Here is a link to the GitHub repository: http://github.com/Loopring/lightcone.A relayer is what hosts, handles, and matches orders, ultimately passing them through to the Loopring protocol smart contracts for settlement. Combined with a Wallet (frontend), it is what makes up a DEX. A single person/project can operate both a Wallet + Relayer (a DEX), or choose to build and focus on one of the two, working with a partner to provide the other function.The Loopring Foundation built Lightcone 1.0 to:Show the ecosystem our interpretation of a Relayer to help developers get started building their own (it is not easy to build!)Allow projects (namely, Wallets) to hook up to Lightcone directly to access ‘Matching-as-a-Service’, so they can focus on their frontendsUltimately, #1 has come true as we open source the code right now after ~8 months of building, but #2 will not proceed as planned. The Loopring Foundation has decided against operating Lightcone 1.0 as a matching engine service, and will not continue to develop this version.Please read on for the reasoning behind this, and what’s in store for the future.About Lightcone Relayer 1.0Lightcone Relayer 1.0 is a backend matching system that supports Loopring Protocol 2.0. Lightcone 1.0 is fully functional, and test coverage is very high: we have been performing integration testing on Ethereum testnet for several weeks.We believe that the source code of the Lightcone relayer can provide a very valuable reference implementation for community developers.Importantly, as an off-chain system, much of the Lightcone relayer code is also suitable for other blockchains besides Ethereum. PoS-based public blockchains or Ethereum high-performance sidechains would do very well with a backend matching system like Lightcone because gas fees are typically lower for those chain types.Why not operate Lightcone Relayer 1.0?The matching efficiency of Loopring Protocol 2.0 is limited by the throughput constraints of Ethereum.At the beginning of the year, our goal was to launch the Lightcone relayer and operate it with a base level of liquidity to help partners building on Loopring 2.0 to bootstrap liquidity. However, the progress of Loopring protocol 3.0 has exceeded our greatest expectations, and we’ve decided to not devote further resources on version 2.0, but focus on designing and developing protocol 3.0.Currently, the gas required for settling a trade (order-ring) on protocol 2.0 is $0.15, and the throughput is about 2 trades per second.The current 3.0 version can settle >450 trades per second (without on-chain data availability), and 80 trades per second (with on-chain data availability), and cost between $0.0004 to $0.003 per trade.With furthers optimizations of the protocol, we believe that Loopring Protocol 3.0 will easily supplant 2.0-based DEX products and user experiences. With 3.0, we will bring fully-functional decentralized exchanges a step closer to competing with their centralized counterparts.About Lightcone Relayer 2.0With this in mind, we have started designing and developing Lightcone Relayer 2.0 — the version that will be compatible with Protocol 3.0 (we know, these numbers can get confusing!).Basically, Lightcone 2.0 will seek to do the same as the first generation was meant to: 1) a full reference for developers to learn/build from, and 2) our previous concept of providing code or cloud services (Matching-as-a-Service) to select strategic partners.We hope to have Lightcone 2.0 up and running by June 2019, about the same time that Protocol 3.0 will be deployed to testnet. Then, when Protocol 3.0 is deployed to Ethereum mainnet shortly after, we will have the full suite solution, and we believe, the world’s most powerful protocol and infrastructure for building non-custodial exchanges. Safe to say, we can hardly wait!Buidl OnBack to the original point of this post: a powerful backend matching system is now open for anyone to build on, use, fork, modify, or learn from!While Lightcone 2.0 coupled with Loopring protocol 3.0 is our focus, Lightcone 1.0 is formidable, and can be used as a backend system for Ethereum DEXs built with Loopring protocol 2.0. It is also suitable for the other chain types alluded to above, given less constraining throughput and costs. Keep in mind, Loopring 2.0 supports security tokens, so it can be used to build security token exchanges just as easily.Do not take our forward-looking stance as a statement to its obsolescence — we believe it is surely among the highest performing order matching systems around today. We invite anyone to get building with it, or tweaking it for their own use.https://github.com/Loopring/lightconeTo stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ GitHub: https://github.com/Loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring Has Open Sourced The Lightcone Relayer was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 04. 24

LRC is listed on Dcoin

LRC is available on Dcoin, which is the world’s first financial industry-standard digital assets and derivatives trading platform, supporting LRC/USDT trading pair. The current transaction fee on Dcoin for the Maker and Taker is 0.2% of the transaction amount, and there is NO fee required for depositing to Dcoin.Dcoin trading platform with its financial industry-standard security and technology provides investors a safe and stable trading environment while guarantees transactions to complete safely and efficiently. The platform adopts the world’s leading technical framework and it’s technical scheme based on Google Cloud and Amazon AWS, and effectively avoids common errors vulnerabilities through a series of detection and optimization to secure all user transactions.Dcoin trading platform upholds the value of being transparent, open for all to participate, and share the value of blockchain for all to invest in digital assets. To protect investors’ rights and interests, Dcoin strictly examines and verifies all of the cryptocurrencies that are available for trading on the platform and cooperate with cryptocurrency developers to ensure more growth to the investment.About DcoinDcoin trading platform is the world’s first financial industry-standard digital assets and derivatives trading platform that mainly provides cryptocurrency trading services for Bitcoin, Ethereum, Lite Coin and etc. Dcoin is founded by blockchain and cryptocurrency enthusiasts with core members from Google, Baidu, 360 and other world-renowned IT companies. The main goal for Dcoin is to provide a quick, simple and secure way for investors to invest and trade their digital assets with ease.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us at:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)LRC is listed on Dcoin was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 04. 16

Loopring Bi-Weekly Update —...

Loopring Bi-Weekly Update — 04/14/2019We released Loopring Protocol 3.0! Using zkSNARKs to achieve much higher throughput of 450 trades/second on Ethereum without on-chain data availability, and 80 trades/second with on-chain data availability. Past versions of Loopring achieved only ~2 trades/second!Research & DevelopmentProtocolsGreat progress was made on protocol 3. Some of the most notable are the following:Functionality was added to completely shutdown an exchange, ensuring that all funds are automatically sent back to all users, because only then is the exchange allowed to withdraw the exchange’s stake.Support was added to support different block sizes with and without on-chain data-availability. This allows the operator of exchange to choose the best block size for the amount of work that needs to be done, limiting the cost of the proof generation, while maximizing the achievable throughput.We also optimized the Merkle tree we use to store all data off-chain, reducing the number of constraints in the circuits by about 20%, greatly increasing our throughput without data-availability.The design document for protocol 3 was also given a thorough update before the public release and we look forward to hearing your thoughts on it. Stay tuned in the coming week for when we open source the code base!RelayerWe have continued integration tests and deployed Relay 2.0 to dev environment. We have provided APIs for mobile app usage. We will continue testing in the next week.ProductsIn the past two weeks, we have continued Relay 2.0 and app integration. We have updated data structure, signing orders, market info and account info. We are working with Relay team on integration tests. Hopefully, the new version of apps will be released soon.Besides that, we have researched using Flutter in app development. Flutter is a cross platform UI framework for Android and iOS. We believe using Flutter will improve our development efficiency.Operations & Marketing04/04/2019 — LRC available on OnePageX, a simple cryptocurrency converter.04/04/2019 — Loopring’s Director BD, Matthew, speaking on a fintech panel to McGill University students on the skills needed to stay competitive in the financial services industry of the future.Thanks to Fintech Cadence for the event.04/08/2019 — Loopring invited Loopring KOL to the group of evangelists.04/09/2019 — Loopring COO, Johnston, shared Loopring latest developments and Oedax at HuobiGlobal club grand opening in China.04/11/2019 — LRC was listed on the Coinvest Plus exchange and available for trade with $BTC, $ETH, $GUSD, and $COIN.04/12/2019 — Loopring collaborated with a famous blockchain community in China to spread blockchain knowledge.04/12/2019 — Loopring team releases design for Loopring Protocol 3.0. Following 6 months of R&D, 3.0 uses Zero-Knowledge Proofs (zkSNARKs) for scalability, bringing throughput to >450 trades/second on Ethereum.04/12/2019 — Loopring 3.0 featured in Week In Ethereum’s awesome ecosystem newsletter.04/13/2019 — Loopring 3.0 Technical Design Doc released. Medium here, and GitHub here.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring Bi-Weekly Update — 04/14/2019 was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 04. 14

Loopring Protocol 3.0 Desig...

We are thrilled to share with you the design of Loopring Protocol 3.0. Our current implementation achieves 450 trades per second without on-chain (Ethereum) data-availability and 80 trades per second with on-chain data-availability. For reference, past versions of Loopring (and other DEXs) did ~2 trades per second. And this is only the beginning, the throughput can be further optimized.Some other features include:On-chain data-availability (DEXs can opt out for even greater throughput & lower cost);All ERC20 tokens and Ether are supported by default;Multiple on-chain DEX instances with isolated state and dedicated event stream (different from 2.0);On-chain deposit + on-chain & off-chain withdrawal support;Support off-chain order cancellation and order time-to-live settings (inherited from 2.0);Allow partial order matching (aka partial fill) and order-scaling (inherited from 2.0);Multiple circuit permutations for different request batch sizes;Use any ERC20 token or Ether as the trading fee to reduce friction(inherited from 2.0);DEX can buy down fee token burn-rate (inherited from 2.0);An enhanced version of dual authoring prevent orders/trades from being stolen by a middleman (enhanced on top of 2.0);A built-in mechanism to force DEX operators to fulfill duties in time (especially for handling deposits and withdrawals);Support DEX operators to stake tokens to “buy” credit;Support a “maintenance mode” for DEX operators to upgrade backends within a time window;Support a unique feature called Order Aliasing (new to 3.0);100% secure for end users, even when DEX operators are evil (same as 2.0);and more…The following is a snapshot of our design document in our yet to-be open-sourced GitHub repository for 3.0. For more up-to-date info, please check out https://github.com/Loopring/protocols/blob/master/packages/loopring_v3/DESIGN.md later. If you prefer to read this snapshot on GitHub, see here: https://github.com/Loopring/docs/wiki/Loopring3_Design. For a less technical post about what this all means, see here: https://medium.com/loopring-protocol/loopring-protocol-3-0-zksnarks-for-scalability-845b35a8b75b.In Loopring Protocol 3 we want to improve the throughput of the protocol significantly. We do this by using zkSNARKs — as much work as possible is done off-chain, and we only verify the work on-chain.For the highest throughput, we only support off-chain balances. These are balances that are stored in Merkle trees. Users can deposit and withdraw tokens to our smart contracts, and their balance will be updated in the Merkle trees. This way we can transfer tokens between users just by updating the Merkle tree off-chain, there is no need for expensive token transfers on-chain.In the long run, we still want to support on-chain transfers due to reasons such as:It may be impossible to deposit/withdraw security tokens to the smart contractUsers may prefer to keep funds in their regular wallets for security reasonsNote that there is never any risk of losing funds when depositing to the smart contract. Both options are trust-less and secure.Data availability for the Merkle tree is an option that can be turned on or off when creating an exchange built on Loopring. When data-availability is enabled, anyone can recreate the Merkle tree just by using the data published on-chain.New DevelopmentThings change quickly.One of the main drawbacks of SNARKs compared to STARKs is the trusted setup. This problem seems to be largely solved. (Sonic: Nearly Trustless Setup). It remains to be seen if the better proving times of STARKs will be important in the future or not (proving times for SNARKs may be a non-issue or could be improved as well). Currently, STARKs also have a much larger minimal cost for verifying a proof on-chain (starts at 2,500,000–4,000,000 gas compared to just 500,000 gas for SNARKs, leaving a much smaller part for on-chain data-availability).Bellman is also being used more and more instead of libsnark for creating the circuits. They work mostly the same (manually programming the constraints). We should use the library/framework with the best support and ease of use, while still allowing efficient circuits to be generated. The current implementation uses libsnark with the help of ethsnarks.Trading with Off-chain BalancesApparent Immediate FinalityOff-chain balances are guaranteed to be available for a short time in the future (until a withdrawal), which allows for a CEX like experience. A DEX can settle a ring off-chain and immediately show the final results to the user without having to wait for the on-chain settlement confirmation. Using on-chain balances, users can modify their balances/allowances directly by interfacing with the blockchain, therefore finality is only achieved when the ring settlement is confirmed on-chain.Higher Throughput & Lower CostAn off-chain token transfer takes only a minimal cost for generating the proof for updating a Merkle tree. The cost of a single on-chain token transfer, however, takes roughly 20,000 gas, and checking the balance/allowance of the sender takes roughly another 5,000 gas. These costs significantly limit the possible throughput and increase the cost of rings settlement.Merkle TreeA Merkle tree is used to store all the permanent data needed in the circuits.Off-chain Merkle TreeThere are a lot of ways the Merkle tree can be structured (or can be even split up in multiple trees, like a separate tree for the trading history, or a separate tree for the fees). The Merkle tree above has a good balance between complexity, proving times and user-friendliness.Only a single account needed for all tokens that are or will be registeredNo special handling for anything. Every actor in the Loopring ecosystem has an account in the same tree.A single nonce for every account (instead of e.g. a nonce for every token a user owns) allowing off-chain requests to be ordered on the account level, which is what users will expect.While trading, 3 token balances are modified for a user (tokenS, tokenB, tokenF). Because the balances are stored in their own sub-tree, only this smaller sub-tree needs to be updated 3 times. The account itself is modified only a single time (the balances Merkle root is stored inside the account leaf). The same is useful for wallets, ring-matchers and operators because these also pay/receive fees in different tokens.The trading history tree is a sub-tree of the token balance. This may seem strange at first, but this is actually very efficient. Because the trading history is stored for tokenS, we already need to update the balance for this token, so updating the trading history only has an extra cost of updating this small sub-tree. The trading history is not part of the account leaf because that way we’d only have 2¹⁴ leafs for all tokens together. Note that account owners can create a lot more orders for each token than the 2¹⁴ slots available in this tree!BlocksWork of a certain type (e.g. depositing, or ring settlements) is batched together in a block (which is not to be confused with an Ethereum block). All data necessary for all types of work is stored in the Merkle tree. A block changes the Merkle tree from the existing state to the new state by doing the state changes required in all the work in the block. These state changes can be verified on-chain by generating a ZK proof using a circuit. Only the Merkle root is stored on-chain. The actor responsible for creating and committing blocks is called the operator.Circuit PermutationsA circuit always does the same. There’s no way to do dynamic loops or branching. Let’s take the ring settlement circuit as an example:The circuit always settles a fixed number of ringsThe rings always contain the predetermined number of ordersWe have 5 circuits:Ring Settlement (aka Trade)DepositOff-chain withdrawalOn-chain withdrawalOrder CancellationCircuits with and without on-chain data-availability are available. We also support a couple of different block sizes for each circuit type to reduce the proving time without padding too many non-op works (or long delays until the block can be completely filled).Committing and Verifying Blocks On-chainCreating a proof for a block can take a long time. If the proof needs to be available at the same time the state is updated on-chain we limit the maximum throughput of the system by the proof generation time. But we don’t need the proof immediately. If a block is committed that isn’t verified in time we can easily revert the state by going back to a finalized block which is guaranteed to be a valid state. This allows forfaster settlement of rings because operators don’t need to wait on the proof generation before they can publish the settlements (and thus also the new Merkle tree states) on-chain.the parallelization of the proof generation. Multiple operators can generate a proof at the same time. This isn’t possible otherwise because the initial state needs to be known at proof generation time.We use a simple commit and verify scheme. A block can be in 3 states:Committed: The block has been committed on-chain but not yet provenVerified: The block has been committed and has been proven, but a block that was committed before this block has not yet been verified.Finalized: The block and all previous blocks have been proven.Proofs do not need to be submitted in order. The proof can be submitted anytime from the start the block was committed until the maximum proof generation time has passed.There is NO risk of losing funds for users. The worst that can happen is that the state is reversed to the latest finalized state. All rings that were settled afterward are automatically reverted by restoring the Merkle roots. Blocks with on-chain requests that were reverted need to be re-submitted and withdrawals are only allowed on finalized blocks.OperatorsThe operator is responsible for creating, committing and proving blocks. Blocks need to be submitted on-chain and the correctness of the work in a block needs to be proven. This is done by creating a proof.The operator can be a simple Ethereum address or can be a complex contract allowing multiple operators to work together to submit and prove blocks. It is left up to the exchange for how this is set up.The operator contract can also be used to enforce an off-chain data-availability system. A simple scheme could be that multiple parties need to sign off on a block before it can be committed. This can be checked in the operator contract. As long as one member is trustworthy and actually shares the data then data-availability is ensured.The operator creates a block and submits it on-chain by calling commitBlock. He then has at most MAX_PROOF_GENERATION_TIME_IN_SECONDS seconds to submit a proof for the block using verifyBlock. A proof can be submitted any time between when the block is committed and MAX_PROOF_GENERATION_TIME_IN_SECONDS seconds afterward, verifying a block does not need to be done in the same order as they are committed. If a block isn't proven in time revertBlock needs to be called by the operator within MAX_AGE_UNFINALIZED_BLOCK_UNTIL_WITHDRAW_MODE seconds the block was committed. When a block is successfully reverted the complete stake of the exchange is burned. If the operator fails to call revertBlock in time the exchange will automatically go into withdrawal mode. If there are any unverified blocks anyone can call burnStake to still burn exchange's stake.Restrictions Imposed on the OperatorThe operator needs all the order data to generate the proof. We need a way to prevent the operator from re-creating rings with him as the recipient of the ring matching fees.To allow orders to be matched by any criteria by a ring-matcher we also need a mechanism to prevent operators to re-order the sequence in which the rings are settled while enforcing the ring can only be settled a single time.Restrict Order Matching:We use dual-authoring here. Orders can only be matched in rings signed by the private key corresponding to the public key stored in the order. For dual-authoring we also use EdDSA keys.Enforced Sequence of Ring Settlements:We use a nonce. The nonce of the ring-matcher account paying the operator is used. The ring signed by the ring-matcher contains a nonce. The nonce in the next ring that is settled for this ring-matcher needs to be the nonce of the previous ring that was settled incremented by 1. A ring-matcher can have multiple accounts to have more control how rings can be processed by the operator (e.g. an account per trading pair).Note that doing an off-chain withdraw also increments the nonce value. A ring-matcher thus may want to limit himself to on-chain withdrawals so the nonce value of the account remains the same.Only Allow Off-chain Requests to be Used Once:The nonce of the account is increased by 1 for these operations. The expected nonce is stored in the off-chain request which is signed by the account owner.ExchangesBlock submission needs to be done sequentially so the Merkle tree can be updated from a known old state to a new state. To allow concurrent settling of orders by different independent parties we allow the creation of stand-alone exchange contracts. Every exchange operates completely independently.Note that user accounts and orders cannot be shared over different exchanges. Exchanges can decide to use the same Exchange contract so orders and users accounts can be shared if they desire.The Loopring contract is the creator of all exchanges built on top of the Loopring protocol. This contract contains data and functionality shared over all exchanges (like the token tiers for the burn rate) and also enforces some very limited restrictions on exchanges (like a maximum withdrawal fee).Exchange CreationAnyone can create a new Exchange by calling createExchange on the Loopring contract. A small amount of LRC may need to be burned to create a new Exchange.An exchange has an owner and an operator. The owner is the only one who can call some functions related to the more business side of things, like registering tokens, putting the exchange in maintenance mode and setting the operator. The operator is responsible for committing and proving blocks.Exchange StakingAn exchange stakes LRC. Anyone can add to the stake of an exchange by calling depositStake, withdrawing the stake however is only allowed when the exchange is completely shut down.The stake ensures that the exchange behaves correctly. This is done byburning the complete stake if a block isn’t proven in timeusing a part of the stake to ensure the operator automatically distributes the withdrawals of usersonly allows the stake to be withdrawn when the exchange is shut down by automatically returning the funds of all its usersExchanges with a large stake have a lot to lose by not playing by the rules and have nothing to gain because the operator/owner can never steal funds for itself.Exchange ShutdownThe exchange owner can choose to shut down the exchange at any time. However, the stake of an exchange can only be withdrawn when the exchange was shut down completely by returning all funds back to the users. This is done as follows:The exchange owner calls shutdown on the exchange contract. This will disallow new on-chain requests by users.First, all remaining open on-chain deposit requests need to be processedFrom this point on only special on-chain withdrawal blocks can be committed. These withdrawals not only withdraw the balance for a token in an account, they also reset the trading history root, the account public key, and the account nonce back to the default values of the Merkle treeOnce the complete tree is reset to its initial state (lastBlock.merkleRoot == genesisBlock.merkleRoot) the exchange owner is allowed to withdraw the full stake by calling withdrawStake.An exchange that is shutdown only has a limited amount of time to revert the state back to the initial state before we go into withdrawal mode. This maximum amount of time can be calculated as follows:maxTimeInShutdown = MAX_TIME_IN_SHUTDOWN_BASE + (numAccounts * MAX_TIME_IN_SHUTDOWN_DELTA)In general, the more accounts an exchange has the more withdrawals need to be done when the exchange is shutdown. We also want to limit this amount of time because otherwise funds from users could be stuck for a long time.This mechanism also guards users against data-availability problems. Even if the Merkle tree cannot be rebuilt by anyone but the operator, this mechanism still ensures all funds will be returned to the users, otherwise, the exchange loses the amount staked.Maintenance ModeThe exchange owner can put the exchange temporarily in a suspended state. This can, for example, be used to update the back-end of the exchange.When the exchange is suspended users cannot do any on-chain requests anymore. Additionally, the operator is not allowed to commit any ring settlement blocks to prevent the exchange owner from abusing this system. The operator still needs to process all on-chain requests that are still open and needs to prove any unverified blocks, otherwise, the exchange runs the risk of getting into withdrawal mode, which is irreversible.The exchange owner can call purchaseDowntime to burn LRC in return for downtime. getDowntimeCostLRC can be used to find out how much LRC needs to be sent to put the exchange in downtime for a certain amount of time. purchaseDowntime can be called multiple times to extend the downtime. getRemainingDowntime can be called to find out how much time the exchange will still remain in maintenance mode.The exchange will get out of the maintenance mode automatically after all downtime has been used. There is currently no way to force the exchange out of this mode immediately, which can be improved in future releases.Token RegistrationBefore a token can be used in the exchange it needs to be registered, so a small token ID of 1 or 2 bytes can be used instead. Only the exchange owner can register tokens by calling registerToken. We ensure a token can only be registered once. ETH, WETH, and LRC are registered when the exchange is created.We limit the token ID to just 8 bits (i.e. a maximum of ETH + 255 tokens) to increase the performance of the circuits. It’s possible that a small amount of LRC needs to be burned for registering a token. This can be checked by calling getLRCFeeForRegisteringOneMoreToken, this is however left up to the Loopring contract.Token Deposit DisablingThe exchange owner can disable deposits of a certain token by calling disableTokenDeposit. Depositing can be enabled again by calling enableTokenDeposit. This can be useful to stop supporting a certain token. Withdrawals for a token can never be disabled (unless temporarily in maintenance mode).On-chain FeesThe owner of the exchange can set the fees for his exchange by calling setFees.The following on-chain requests can require a fee to be paid in ETH to the exchange:Account creationAccount updateDepositingWithdrawingAn exchange is allowed to freely set the fees for any of the above. However, for withdrawals, the Loopring contract enforces a maximum fee. This is to ensure exchange cannot stop users from withdrawing by setting an extremely high withdrawal fee.Any function requiring a fee on-chain can be sent ETH. If the user sends more ETH than required (e.g. because the exact fee amount in hard to manually set) then the surplus is immediately sent back.Fee ModelWe support the flexible fee model introduced in protocol 2 for trading. Using this model the trading fee can be paid in any token, but certain tokens have a lower burn rate than others.The token tiers are stored in the Loopring contract. All tokens are tier 4 by default, but 3 tokens have a fixed tier:ETH: tier 3WETH: tier 3LRC: tier 1LRC has the lowest burn rate by default. The burn rate for a token can be lowered by upgrading the tier of the token. This can be done by calling buydownTokenBurnRate. The cost to upgrade the token a single tier is tierUpgradeCostBips * LRC.totalSupply(). The burn rate for a token can be found by calling getTokenBurnRate.Only the fees paid by the order owners are subject to fee burning; margins are not. The business model among wallets, ring-matchers, and operators can be negotiated off-chain and can be totally detached from the protocol.SignaturesCurrently, we use EdDSA keys (7,000 constraints to verify a signature), which is a bit cheaper than ECDSA signatures (estimated to be ~12,000 constraints). We may switch to ECDSA signatures if possible because users would not need to create (and store) a separate trading keypair.The introduction of trading keypairs does have a benefit: orders no longer need to be signed by a user’s Ethereum private key, DEX interfaces thus no longer need access to those Ethereum private keys. This is more secure for both users and DEXes.The data for an EdDSA signature is stored like this:Signature { Rx (256bit) Ry (256bit) s (256bit)}Account CreationBefore the user can start trading he needs to create an account. An account allows a user to trade any token that is registered (or will be registered in the future). The account is linked to the msg.senderthat created the account, creating a one-to-one mapping between Ethereum addresses and accounts. Any future interaction with the account on-chain that needs authentication needs to be done using the same msg.sender.The account needs an EdDSA public key. This public key will be stored in the Merkle tree for the account. Every request made for the account in off-chain requests (like orders) needs to be signed using the corresponding private key.An account can be created using createOrUpdateAccount. When creating an account a user can also immediately deposit funds using updateAccountAndDeposit as both are handled by the same circuit. updateAccountAndDeposit can also be used by users to update the EdDSA public key which is used for signing off-chain requests.If the account is used to receive fees that are subject to fee-burning (i.e. all fees except the margin and the fee paid by the ring-matcher to the operator), then the account needs to be a special fee-recipient account. This type of account can be created by calling createFeeRecipientAccount.DepositingA user can deposit funds by calling deposit. If ERC-20 tokens are deposited the user first needs to approve the Exchange contract so the contract can transfer them to the contract using transferFrom. ETH is supported, no need to wrap it in WETH when using off-chain balances.A user can also choose to deposit to the account of someone else by calling depositTo.The balance for the token in the account will be updated once it’s included in a block. See here how on-chain requests are handled.We store the deposit information on-chain so users can withdraw from these deposited balances in withdrawal mode when the request didn’t get included in a finalized block (see withdrawal mode).WithdrawingThe user requests a withdrawal either on-chain or off-chain by sending the operator a withdrawal request. Once the operator has included this request in a block and the block is finalized the tokens can be withdrawn by anyone by calling withdrawFromApprovedWithdrawal (and the tokens will be sent to the account owner).Automatic Distribution of WithdrawalsNormally users should not need to call withdrawFromApprovedWithdrawal manually. The operator should call distributeWithdrawals MAX_TIME_TO_DISTRIBUTE_WITHDRAWALS seconds after the withdrawal block was committed. This will distribute all tokens that were withdrawn to the corresponding account owners without any further interaction of the account owner himself. If the operator fails to do so in time, anyone will be able to call the function. The exchange is fined for this by withdrawing a part of the exchange stake for every withdrawal included in the block:totalFine = Loopring.withdrawalFineLRC() * numWithdrawalRequestsInBlock50% of the fine is used to reward the caller of the function for distributing the withdrawals, the other 50% is burned.Fee BurningWhen withdrawing funds from a fee-recipient account a part of the balance is burned. If the token is LRC we burn the amount immediately by calling burn on the LRC token contract, otherwise we send the amount to the Loopring contract. There it can be withdrawn by the Loopring contract owner by calling withdrawTheBurn so that it can be used to buy LRC and burn it. In the future, these funds will be sold directly on-chain in a decentralized way by using Loopring's Oedax (Open-Ended Dutch Auction eXchange) protocol.Off-chain Withdrawal RequestA request for withdrawal is sent off-chain to the operator. The operator should include the withdrawal in a reasonable time in a block, though no guarantees can be made to the user when it will be included. The user can pay a fee in any token he wants to the operator. The wallet can receive a part of the fee paid to the operator.The nonce of the account is increased after the withdrawal is processed.OffchainWithdrawal { exchangeID (32bit) accountID (20bit) tokenID (8bit) amount (96bit) walletAccountID (20bit) feeTokenID (8bit) fee (96bit) walletSplitPercentage (7bit) nonce (32bit)}An off-chain withdrawal is hashed using Pedersen in the sequence given above. The hash is signed by the Owner using the private key associated with the public key stored in account[accountID] with EdDSASignedOffchainWithdrawal { OffchainWithdrawal offChainWithdrawal Signature sig}SignedOffchainWithdrawals can be sent to the Operators for commitment.On-chain Withdrawal RequestA user calls withdraw and the request is added to the withdrawal chain. See here how on-chain requests are handled.Ring SettlementThe ring settlement is just as in protocol 2 with some limitations:Only 2-order ringsNo P2P orders (always use fee token)No on-chain registration of ordersNo fee waiving mechanism with negative percentages (which would pay using order fees, greatly increasing the number of constraints)Orders and order-matching are still completely off-chain.Rings are automatically scaled to fill the orders as much as possible with the funds available in the Merkle tree at the time of settlement. The order that pays the margin (if there is any) needs to be the first order in the ring (we use the price of the second order as the trading price).Partial order filling is fully supported. How much an order is filled is stored in the Merkle tree. No need for users to re-sign anything if the order wasn’t filled completely in a single ring, a user only needs to sign his order a single time. The order can be included in as many rings as necessary until it is completely filled.Rings Accepted in the CircuitOnly ‘valid’ rings can be included in a circuit. With ‘valid’ we mean rings and orders that are completely valid (signatures correct, order data correct,…), but may not result in actually filling the orders. As a general rule of thumb: if the ring-matcher cannot fully control the parameter used for the rings settlement we allow the ring settlement to gently fail by not doing any token transfers. Rings that are never valid cannot be included in a block.List of causes that will result in no actual ring settlement, but are still accepted by the circuit:An order is expiredAn order is canceledAn order is already completely filledAn allOrNone order cannot be completely filledThe fill amounts have rounding error that is too largeThe amount sold is 0 or the amount bought is 0The account owner of an order does not have enough fundsThe orders cannot be matched correctlyFor these types of rings, a fee is still collected by the operator from the ring-matcher’s accounts.Off-chain DataOrdersOrder { exchangeID (32bit) orderID (32bit) accountID (20bit) walletAccountID (20bit) dualAuthPublicKeyX (254bit) dualAuthPublicKeyY (254bit) tokenS (8bit) tokenB (8bit) tokenF (8bit) amountS (96bit) amountB (96bit) amountF (96bit) allOrNone (1bit) validSince (32bit) validUntil (32bit) walletSplitPercentage (7bit)}An order is hashed using Pedersen in the sequence given above. The hash is signed by the order Owner using the private key associated with the public key stored in account[accountID] with EdDSA.SignedOrder { Order order Signature sig [Optional] dualAuthPrivateKey (256bit)}SignedOrders can be sent to Ring-Matchers for matching. Optionally the dual-author private key can be sent to ring-matcher so the ring-matcher can sign rings using the order.RingsRing { orderA_hash (254bit) orderB_hash (254bit) orderA_waiveFeePercentage (7bit) orderB_waiveFeePercentage (7bit) accountID (20bit) tokenID (8bit) fee (96bit) feeRecipientAccountID (20bit) nonce (32bit)}A ring is hashed using Pedersen in the sequence given above. The hash is signed byby the Ring-Matcher using the private key associated with the public key stored in account[accountID] with EdDSAby the dual-author private key of orderA with EdDSAby the dual-author private key of orderB with EdDSASignedRing { Order orderA Order orderB Ring ring Signature sigRingMatcher Signature sigDualAuthorA Signature sigDualAuthorB}SignedRings can be sent to the Operators for settlement.Canceling OrdersThere are many ways an order can be canceled.Limit Validity in TimeOrders can be short-lived and the order owner can safely keep recreating orders with new validSince/validUntil times using Order Aliasing as long as they need to be kept alive.Off-chain Order Cancellation RequestThe user sends a request for canceling an order. The operator should include the cancellation as soon as possible in a block, though no guarantees can be made to the user when it will be included. The user can pay a fee in any token he wants to the operator. The wallet can receive a part of the fee paid to the operator.The nonce of the account is increased after the cancel is processed.CancelRequest { exchangeID (32bit) accountID (20bit) orderTokenID (8bit) orderID (32bit) walletAccountID (20bit) feeTokenID (8bit) fee (96bit) walletSplitPercentage (7bit) nonce (32bit) zero-padding (2bit)}A cancel request is hashed using Pedersen in the sequence given above. The hash is signed by the Owner using the private key associated with the public key stored in account[accountID] with EdDSASignedCancelRequest { CancelRequest cancelRequest Signature sig}SignedCancelRequests can be sent to the Operators for commitment.Updating the Account InfoThe account information can be updated with a new EdDSA public key which invalidates all orders and off-chain requests of the account.The party with the dual-author keys stops signing rings containing the orderOnly the party with the dual-author keys can actually use the order in a ring. Especially in an order-sharing setup like described here this would be very useful. Anybody can become a ‘Wallet’ and create orders using their own personal dual-author addresses so they remain in complete control of their orders.Creating an order with a larger orderID in the same trading history slotIf an order with a larger orderID is used in a ring settlement at the same trading history slot as a previous order, the previous order is automatically canceled. Please read Trading History to learn more about how the trading history is stored.The DEX removes the order in the order-bookIf the order never left the DEX and the user trusts the DEX then the order can simply be removed from the order book.Trading HistoryEvery account has a trading history tree with 2¹⁴ leafs for every token. Which leaf is used for storing the trading history for an order is completely left up to the user, and we call this the orderID. The orderID is stored in a 32-bit value. We allow the user to overwrite the existing trading history stored at orderID % 2^14 if order.orderID > tradeHistory.orderID. If order.orderID < tradeHistory.orderID the order is automatically canceled. If order.orderID == tradeHistory.orderID we use the trading history stored in the leaf. This allows the account to create 2^32 unique orders for every token, the only limitation is that only 2^14 of these orders selling a certain token can be active at the same time.While this was done for performance reasons (so we don’t have to have a trading history tree with a large depth using the order hash as an address) this does open up some interesting possibilities.Order AliasingThe account owner can choose to reuse the same orderID in multiple orders. We call this Order Aliasing.Safely updating the validUntil time of an orderFor safety, the order owner can limit the time an order is valid, and increase the time whenever he wants safely by creating a new order with a new validUntil value, without having to worry if both orders can be filled separately. This is done just by letting both orders use the same orderID.This is especially a problem because the operator can set the timestamp that is tested on-chain within a certain window. So even when the validSince/validUntil times don’t overlap it could still be possible for an operator to fill multiple orders. The order owner also doesn’t know how much the first order is going to be filled until it is invalid. Until then, he cannot create the new order if he doesn’t want to buy/sell more than he actually wants. Order Aliasing fixes this problem without having to calculate multiple hashes (e.g. order hash with time information and without).The possibility for some simple filling logic between ordersA user could create an order selling X tokenZ for either N tokenA or M tokenB (or even more tokens) while using the same orderID. The user is guaranteed never to spend more than X tokenZ, but will have bought [0, N] tokenA and/or [0, M] tokenA.A realistic use case would be for selling some token for one of the available stable coins. Or selling some token for ETH and WETH. In these cases, the user doesn’t really care which specific token he buys, but he increases his chance of finding a matching order.On-chain Deposit/Withdraw Request HandlingOn-chain deposit and withdrawal requests are added to a small ‘blockchain’ on-chain. We use separate chains for deposits and withdrawals. For every request we store the following:The accumulated hash: The hash of the request data hashed together with the accumulated hash of the previous request.The accumulated fee: The fee of the request added to the accumulated fee of the previous request.The timestamp the request was added.This setup allows the operator to process any number of requests in a block that he wants (though only a limited number of requests/block type are supported to limit the number of circuits, padding is done when needed). The circuits use the starting accumulated hash and the ending accumulated hash (after padding) as public input. The fee the operator receives for all the requests can easily be calculated by subtracting the accumulated fees of the last and first requests.All requests are handled FIFO in their corresponding chain (deposit or withdrawal chain).Once the block containing the deposits/withdrawals is finalized the operator can call withdrawBlockFee to collect the fee earned by processing the requests.Because we want on-chain requests to be handled as quickly as possible by the operator, we enforce some limitations on him. However, we also don’t want to let operators be overwhelmed by the number of on-chain requests. The following rules apply:The maximum number of open on-chain requests is limited by MAX_OPEN_DEPOSIT_REQUESTS and MAX_OPEN_WITHDRAWAL_REQUESTS. Anyone can check if there are available slots by calling getNumAvailableWithdrawalSlots or getNumAvailableDepositSlots.If there is an open on-chain request older than MAX_AGE_REQUEST_UNTIL_FORCED then the operator can only commit blocks containing requests like this. Priority is given to withdrawals if there are deposit and withdrawal requests forced.The total fee paid to the operator (the sum of all fees of all requests processed in the block) is reduced the older the requests in the block are. As a starting point for this reduction, the last processed request in the block is used. If the block is committed less than FEE_BLOCK_FINE_START_TIME seconds afterwards the operator receives the complete fee. If not, the fee is linearly reduced for a total time of FEE_BLOCK_FINE_MAX_DURATION. From then on the operator does not receive any fee at all. The fine paid by the operator is burned (i.e. sold for LRC and then the LRC is burned).If any request that is still open is older than MAX_AGE_REQUEST_UNTIL_WITHDRAW_MODE we automatically go into withdrawal mode.Current values:function MAX_OPEN_DEPOSIT_REQUESTS() internal pure returns (uint16) { return 1024; }function MAX_OPEN_WITHDRAWAL_REQUESTS() internal pure returns (uint16) { return 1024; }function MAX_AGE_REQUEST_UNTIL_FORCED() internal pure returns (uint32) { return 15 minutes; }function MAX_AGE_REQUEST_UNTIL_WITHDRAW_MODE() internal pure returns (uint32) { return 1 days; }function FEE_BLOCK_FINE_START_TIME() internal pure returns (uint32) { return 5 minutes; }function FEE_BLOCK_FINE_MAX_DURATION() internal pure returns (uint32) { return 30 minutes; }Withdrawal ModeThe operator may stop submitting new blocks and proofs at any time. If that happens we need to ensure users can still withdraw their funds.An exchange can go in withdrawal mode when any of the conditions below are true:An on-chain request (either deposit or withdrawal) is open for longer than MAX_AGE_REQUEST_UNTIL_WITHDRAW_MODEA block remains unfinalized for longer than MAX_AGE_UNFINALIZED_BLOCK_UNTIL_WITHDRAW_MODEOnce in withdrawal mode, almost all functionality of the exchange is stopped. The operator cannot commit any blocks anymore. Users can withdraw their funds using the state of the last finalized block:Balances still stored in the Merkle tree can be withdrawn with a Merkle proof by calling withdrawFromMerkleTree or withdrawFromMerkleTreeFor.Deposits not yet included in a finalized block can be withdrawn using withdrawFromDepositRequestApproved withdrawals can manually be withdrawn (even when not in withdrawal mode) using withdrawFromApprovedWithdrawalWalletsWallets are where users create orders. The wallet can insert its account to receive a part of the fees paid by the order owner.Wallets need to create a fee-recipient account to receive the wallet fees of the order. This account can be included in the order.Ring-MatchersRing-matchers collect as many orders as possible sent to him by wallets (or created by himself). In this large pool of orders, he finds 2 (or more, depending on the protocol version) orders that can be matched with each other (so the orders are filled as expected by the users, this is enforced by the protocol). We call this a ring.Ring-matchers need to create a normal account so they can pay the operator (and receive the burn rate free margin). They also need to create a fee-recipient account to receive the matching fee from orders (because the burn rate needs to be applied on these funds when withdrawing).The fee paid by the ring-matcher to the operator is completely independent of the fee paid by the orders. Just like in protocol 2 the ring-matchers pays a fee in ETH to the Ethereum miners, the ring-matcher now pays a fee to the operator. Any registered token can be used to pay the fee.BrokersA broker is someone that can manage orders for an account it does not own.The account system is used for this. Users can create a special account for a broker and deposit funds the broker is able to use. This is done by setting account.publicKey to the public key of the broker instead of the order owner. To stop the broker from being able to fill orders the balance can be withdrawn or the public key stored in the account can be changed.Timestamp in CircuitsA block and its proof are always made for a fixed input. The operator cannot accurately know on what timestamp the block will be processed on the Ethereum blockchain, but he needs a fixed timestamp to create a block and its proof (the chosen timestamp impacts which orders are valid and invalid).We do however know the approximate time the block will be committed on the Ethereum blockchain. When committing the block the operator also includes the timestamp he used in the block (as a part of the public data). This timestamp is checked against the timestamp on-chain and if the difference is less than TIMESTAMP_HALF_WINDOW_SIZE_IN_SECONDS the block can be committed.On-chain DataFrom the yellow paper:4 gas is paid for every zero byte of data or code for a transaction68 gas is paid for every non-zero byte of data or code for a transactionIn the calculations below we use 68 gas/byte for our data-availability data. Please note that these numbers are worst-case numbers. We currently don’t pack the data-availability data very tightly so there will be a lot of zeros. The gas cost in practice will be significantly lower (up to ~30% lower).Data-Availability for Ring Settlements- Operator account ID: 3 bytes- For every ring - Ring-matcher account ID: 3 bytes - Fee-recipient account ID: 3 bytes - Token ID (fee to operator): 2 bytes - Fee amount: 12 bytes - Margin (paid by first order): 12 bytes - For both Orders: - Account ID: 3 bytes - Wallet account ID: 3 bytes - TokenS: 2 bytes - TokenF: 2 bytes - Order ID: 4 bytes - FillS: 12 bytes - FillF: 12 bytes - WalletSplitPercentage: 1 byte - WaiveFeePercentage: 1 byte=> 112 bytes/ring => Calldata cost: (32 + 2 * 40) * 68 = 7616 gas/ringWe can save some more bytes (e.g. on the large values of the margin and the fees, these can be packed much more efficiently) so we can probably get this down to ~80 bytes/ring.Data-availability for Order Cancellations- Operator account ID: 3 bytes- For every cancel: - Account ID: 3 bytes - Token ID: 2 bytes - Order ID: 4 bytes - Wallet Account ID: 3 bytes - Fee token ID: 2 bytes - Fee amount: 12 bytes - WalletSplitPercentage: 1 byte=> 27 bytes/cancel=> Calldata cost: 27 * 68 = 1836 gas/cancelThis is already quite cheap but can be greatly improved by packing the fee value better.Withdrawal Data// Approved withdrawal data- For every withdrawal: - Account ID: 3 bytes - Token ID: 2 bytes - Amount: 12 bytes// Data-availability- Operator account ID: 3 bytes- For every withdrawal: - Wallet account ID: 3 bytes - Fee token ID: 2 bytes - Fee amount: 12 bytes - WalletSplitPercentage: 1 byte=> On-chain: 17 bytes/withdrawal=> On-chain withdrawal calldata cost: 17 * 68 = 1156 gas/on-chain withdrawal=> With data-availability: 35 bytes/withdrawal=> With data-availability calldata cost: 35 * 68 = 2380 gas/off-chain withdrawalThe approved withdrawal calldata also needs to be stored on-chain so that the data can be used when actually withdrawing the tokens when allowed (storing 32 bytes of data costs 20,000 gas):=> Data storage cost: (17 / 32) * 20,000 = 10,625 gas/withdrawalThroughput (for Ring Settlements)The throughput is limited by:The cost of the data we have to send in the calldata for the on-chain data-availability.The 256,000,000 constraints limit that allows efficient proof verification on-on-chain.Without data-availability, we are only limited by the number of constraints in a single block.The gas limit in an Ethereum block is 8,000,000 gas. An Ethereum block is generated every ~15 seconds.On-chain Data-Availability LimitVerifying a proof + some state updates/querying: ~600,000 gas=> (8,000,000–600,000) / 7,616 = 971 rings/Ethereum block = ~65 rings/second (worst case)These numbers can be improved by packing the data more tightly.Constraints LimitWe can only prove circuits with a maximum of 256,000,000 constraints on-chain efficiently.Currently, our most expensive ring settlement circuit with data-availability support uses ~525,000 constraints/ring:256,000,000 / ~525,000 = ~500 rings/blockOur most expensive ring settlement circuit without data-availability support uses ~475,000 constraints/ring (this is cheaper than with data-availability because we don’t have to hash the data-availability data in the circuit):256,000,000 / ~475,000 = ~550 rings/blockResultsIn a single block, we are currently limited by the number of constraints used in the circuit. Verifying a proof costs only ~600,000 gas so multiple blocks can be committed if needed.Using 2 blocks with on-chain data-availability (so that we are limited by the cost of data-availability):=> (8,000,000–600,000 * 2) / 7,616 = ~900 rings/Ethereum block = ~60 rings/second (worst case)Note again that these are worst-case numbers. The data will contain a lot of zeros which will make it possible to commit more than 2 blocks/Ethereum block. In practice we expect this number to be closer to ~80 rings/second (expected)Without data-availability, we are limited by how many blocks (and thus by how many rings/block) we can verify in a single Ethereum block:=> 8,000,000 / 600,000 = ~13 blocks/Ethereum block= ~550 rings/block * 13 blocks/Ethereum block = ~7000 rings/Ethereum block = ~450 rings/secondFor comparison, let’s calculate the achievable throughput of the previous Loopring protocols that did the ring settlements completely on-chain.Gas cost/ring settlement: ~300,000 gas=> 8,000,000 / 300,000 = 26 rings/Ethereum block = ~2 rings/second.Cost in USD per Trade in the table does not cover off-chain proof generation.Future ImprovementsThese numbers will improve significantly, even in the near future.More efficient hash functions may be usable which would drastically decrease the number of constraints.Our fee model is quite complex, using a lot of token transfers. We can create circuits with a simplified fee model. This, again, will greatly decrease the number of constraints.With these improvements we will be able to do ~10,000–20,000 rings/Ethereum block or ~1000 rings/second without on-chain data-availability. And this is even without recursive SNARKs. Once this is possible on Ethereum the throughput can increase another order of magnitude.For an order of magnitude improvement with on-chain data-availability, we are dependent on Ethereum. Proposals to lower the calldata cost are already in the making.Proof Generation CostFrom Matter Labs:[about circuits with 256 million constraints] “the computation took 20 minutes on a 72-core AWS server”.At the target latency of 5 min at 100 TPS we estimate the off-chain part to be approximately 0.001 USD. This estimate is very conservative.Ring settlements are ~5x more expensive than simple token transfers, but this will still be pretty cheap.DEX with CEX-like ExperienceSetting up the ExchangeThe DEX can decide to use an existing exchange so it does not need to set up its own infrastructure to handle block creation and creating proofs. This also makes it possible to share orders with all other parties using that exchange.In this case study, let’s create a new exchange. The exchange owner just needs to call createExchange on the Loopring contract. This creates a brand new exchange contract.TradingUsers create orders using accounts created on the exchange. Orders are added to the order books of the DEX.The DEX matches the order with another order, signs the ring using the ring-matcher private key and the dual-author keys of the orders. The order gets completely filled in the ring:The GUI of the DEX can be updated immediately with the state after the ring settlement. The order can be shown as filled, but not yet verified.The DEX sends the ring to the operator(s) of the exchange. Because these rings need to be settled in a reasonable time the operator needs to call commitBlock soon after receiving rings.The operator generates proofs and calls verifyBlock within the maximum time allowedThe DEX could now show an extra ‘Verified” symbol for the filling of the order.An order can be in the following states:Unmatched in an order-bookMatched by the DEXCommitted in a block sent in commitBlockVerified in a block with proof in verifyBlockFinalized when the block it was in is finalized (so all blocks before and including the block containing the ring settlement are verified)Only when the block is finalized is the ring settlement irreversible.Deposit and Withdrawal ProcessThe first thing a user needs to do is create an account. The user has the option to directly deposit tokens to this new account to be created.updateAccountAndDeposit is called on the exchange contract. A new account is created on-chain (the on-chain account information does not contain any balance information because the balance will only be used and updated in the Merkle tree) and the necessary data is hashed together that needs to be used for creating the account in the Merkle tree in the circuit. The amount of tokens the user deposits to the contract will be stored in the leaf of the Merkle tree with address accountID (together with the rest of the account information).The Merkle tree has not yet been updated. This needs to be done by the operator by committing a deposit block containing the deposit by the user. As long as the account is not added to the Merkle tree the account cannot be used.The operator can stop working before this is done, however. That’s why the amount deposited is stored somewhere on-chain so that the user can withdraw these funds in withdrawal mode.But the operator wants to earn fees so he creates a block that adds the account to the Merkle tree. After the account is added in the circuit, it can immediately be used.The account balance is updated between trades as you’d expect.The user then wants to withdraw (a part of) the balance. He can let the operator know on-chain, or he can just send a request off-chain. The only difference is that when the request is made off-chain the operator can choose when to do the withdrawal so there is no guarantee when it will be done. In any case, there will be a delay between the request for withdrawal and when the operator includes the withdrawal in a block. In this period the operator is free to keep using the balances in the account to settle rings.After some time the operator includes the withdrawal in a block. Two things are done when this happens:The balance in the Accounts Merkle tree is subtracted with the amount withdrawn in the circuit (if possible of course, otherwise nothing is withdrawn)The smart contract adds the amount that is withdrawn to a list stored on-chain.The withdrawn amount is stored in a list because the user is still not able to actually withdraw it yet! The user is only allowed to withdraw it when the block is finalized, which means that the block can never be reverted.This mechanism is needed to support delayed proof submission. If the proof is available immediately when the block is committed the new state would always be verified valid and the amount that can be withdrawn correctly. But with delayed proof submission, we are only certain the block is correct and irreversible when all blocks before it and including the block containing the withdrawal are proven.Once the operators have submitted all the proofs necessary for the block containing the withdrawal to be finalized, the user is finally able to call withdrawFromApprovedWithdrawal on-chain with the necessary information when the withdrawal was done to get the tokens out of the smart contract.Let’s now look at the case where the withdrawal request was done by an operator, but the block containing the withdrawal needs to be reverted. Two things happen automatically by the revert:The Merkle tree root is restored as it was before the withdrawal. The balance is restored.The list of withdrawals we stored on-chain for the reverted block is thrown away when reverting. A user was never able to withdraw from these in withdrawFromApprovedWithdrawal because the block associated with the withdraw list was never marked as finalized.Order Sharing with Dual-AuthoringDual-Authoring is a technology we invented in Loopring 1.5 to prevent certain types of front-running behaviors. In 3.0, Dual-Authoring is very similar as in protocol 1.5 and 2.0, but used a bit differently.Automatically sharing orders between DEXs can be problematic, mainly because of collisions. For example, DEX B could decide it wants to use an order of DEX A and creates a ring and sends it to the operator. But at the same time, DEX C could have also decided to use the same order in a different ring. In the best case, both rings can be settled. But it’s also possible only one of the rings can be settled because the shared order cannot be filled for the fill-amount specified in the second ring. Or because the balance of the order owners isn’t sufficient anymore. This uncertainty makes it so that a DEX needs to wait longer to show the result of a trade to the user. It’s also hard for a DEX to track the state of a shared order and of the balances of its users if they can be modified at any time without is knowledge.A solution for this could be dual authoring. But, we don’t share the dual author keys with anyone. When a ring-matcher wants to create a ring using orders of wallet A and wallet B then the ring needs to be signed by wallet A and wallet B independently. This negotiation would be completely off-chain.The protocol would be something like this. DEX A signs a ring using orders of DEX A and DEX B and sends it to DEX B. DEX B can now decide if he wants to share the order with DEX A or not in the given ring. If not, DEX B simply sends a message back that there is no deal. If DEX B does want to share the order, he can sign the ring as well. The ring is now signed by DEX A and DEX B (the DEXs of the orders in the ring) and the ring can be sent to the operator for settlement. DEX B now sends the doubly signed ring back to DEX A so the DEX can be sure the ring will be settled (or DEX A could just monitor the rings submitted to the operators).This process should be very fast. The delay between the initial request and knowing whether the ring can be settled should take at most seconds. DEXs also know exactly the state each order is in or is going to be in because every shared order still needs to pass through the DEX it is from.The protocol could allow the payment of an additional fee for the use of the order. How much fee is paid for the use of the order is completely left up to the DEXs/wallets/ring-matchers. If DEX A has an order, and DEX B and DEX C wants to use it, then DEX A can choose the DEX that offers the most fees for the order.A scenario where this would be very helpful is for a service that offers liquidity from some sources (e.g. a bot for a CEX). This service would offer orders to multiple DEXs and can decide on any criteria how it wants to share its orders.Dual AuthoringRed arrows: order sharing by negotiation (needs to be online to share orders)Black arrows: order sharing by sharing the dual author key (does not need to be online to share orders)Simple wallets probably don’t want to pay for the infrastructure to sign rings all the time for sharing their orders. So these will still share the dual author keys. But to prevent collisions etc… they should only share the keys with a single ring-matcher/DEX.This order sharing is only possible when orders are created for the same exchange contract, so it’s a big advantage for multiple parties to decide to use the same Exchange contract to maximize liquidity.Recap:DEXs/Wallets/Ring-matchers can keep track of his orders and the balances of his users because every order that is used needs to pass through him.Orders are canceled by not signing any rings anymore with the order, which only the party with the dual-author keys stored in the order can do.No collisions (if all parties act correctly).Fine-grained order sharing with the possibility of a fee.Same order can be shared multiple times in multiple rings with multiple parties.We’d love community feedback. To get involved or help out with Loopring 3.0, please reach out to foundation@loopring.org.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us at:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring Protocol 3.0 Design Doc was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 04. 13

Loopring Protocol 3.0: zkSN...

Fast, trustless, token trading. Not an oxymoron anymore. It’s with great excitement that today we unveil the design of our newest, fastest, and most forward-looking protocol, Loopring Protocol 3.0.Protocol 3.0 has two main benefits:Way higher throughput & lower costs.Apparent immediate settlement.Combined, this means that trading on a DEX will no longer feel like trading on a DEX.Here is our fully detailed design document: https://github.com/Loopring/docs/wiki/Loopring3_DesignUsing blockchains to trade blockchain-based assets makes sense. We all know it. Any other situation is rather puzzling. So why, as traders, are we giving our cherished, trustless, magical money to trusted intermediaries? Why are we trading IOUs? Why would we ever move our assets off the open platforms that promise to permeate all corners of finance and beyond?Many of us are guilty of doing just that. Meanwhile, with the current state of centralized exchanges, we don’t know whether to be more fearful of losing crypto to outside hackers, or inside jobs. We also haven’t a clue what is real volume and what is fake. Although, people are figuring it out.To be honest, however, there are (were) good reasons that cryptocurrencies and tokens traded on centralized exchanges: trading on a DEX is not (always) fun or feasible. There, we said it.UX, liquidity, and scalability are the three big obstacles commonly listed. Our fellow builders, particularly in the Ethereum DeFi community, have made absolutely incredible progress on many fronts: deeper liquidity is awakening, and beautiful dapps are offering an experience as simple as web 2.0.Scalability, though, especially as it pertains to trustless trading, has remained elusive. And let’s face it, without massively scaling DEXs (or massively scaling Ethereum a layer below) we won’t realize our ambitions. With that in mind, Loopring R&D has been focusing heavily on scalability solutions over the past 6 months.Our new release, Loopring Protocol 3.0, stares squarely at scalability, and uses one of the most promising tools to help solve it: zero knowledge proofs.High Level Overview of Zero Knowledge Proofs 🔐We’ve always had scalability on our minds. That’s what influenced our design decision from the beginning (1.0 and 2.0): a hybrid model, with off-chain order messaging, and on-chain settlement. Do as much as possible off-chain, and use the blockchain only when needed, for mission critical guarantees.Protocol 3.0 is kind of like that — just taken to its extreme and logical conclusion. Now, we can do much, much more off-chain, including settlement…while still remaining secure.We achieve this by using zero knowledge proofs (ZKPs), a cryptographic tool that can be used by someone, a prover, to prove they’ve done some computation or know some ‘secret’ — without actually peeling back the curtain to give a verifier a look at said computation or secret.That sounds like it’s pretty useful for privacy, right? I can, for example, prove to some investment group that I have >X dollars, the threshold to join their club, without divulging exactly how many dollars I have. And the group can be certain I’m telling the truth. Pretty mind-bending. It’s also the stuff that powers (or shields) some of the leading privacy focused coins like ZCash.Besides privacy, though, ZKPs are also extremely useful for scaling complex systems. Instead of proving I have >X dollars, I can also prove that, as a DEX owner, my users’ have their proper balances in their accounts, that I’ve settled their trades appropriately, processed withdrawals, etc… all the DEX-y computations you can think of. And instead of executing this in blockchain smart contracts, I do this off-chain, and come up with a small proof that still makes everyone know I’m telling the truth.That’s what Protocol 3.0 aims for: scalability without sacrificing security.In 3.0, pertinent data such as account balances and trade history are kept off-chain in Merkle trees. By doing so, trades can be settled between users just by updating the tree off-chain, with no need for slow, expensive token transfers on-chain.We do not give up security guarantees by doing this. ZKPs assure that what was claimed to be true and executed, is true and executed. The protocol is still 100% non-custodial, and fully secure for end users — even when DEX operators are malicious, they cannot steal your tokens.With all computations done off-chain, we can speak to the Ethereum chain much less frequently, and with much lighter loads. In fact, all DEXs submit to Ethereum is that proof we mentioned — a proof that certifies everything that a DEX has done off-chain is correct.With ZKPs, specifically zkSNARKs — the form we have chosen to work with — the proof can be checked trivially and efficiently (in milliseconds) by verifiers, or, in our case, a smart contract built to verify proofs.High Level Overview of Loopring Protocol 3.0 📝Anyone can create a new exchange on the Loopring protocol. An exchange has an owner and an operator.The owner is who handles business-related functions, like registering tokens, putting the exchange in maintenance mode, and setting the operator.The operator is responsible for creating, committing and proving blocks.Blocks are not Ethereum blocks in this sense — they are simply chunks of DEX related work, such as trade settlements. A block changes the Merkle tree from the existing state to the new state by doing the state changes required in all the work in the block. The correctness of the work in a block needs to be proven and submitted to the Ethereum chain. This is done by creating a ZK proof.For the highest throughput, 3.0 currently supports off-chain balances only. These balances are stored in Merkle trees. Users deposit and withdraw tokens to our smart contracts, and their balance will be updated in the Merkle trees. [Note: You don’t need to trust a custodian. It is trustless. No risk of losing funds.]Going it aloneBlock submission needs to be done sequentially so the Merkle tree can be updated from a known old state to a new state. To allow concurrent settling of orders by independent parties, we allow the creation of stand-alone exchange contracts. Every exchange contract operates independently. User accounts and orders cannot be shared over different exchanges contracts.Or working togetherAlternatively, DEXs can decide to use the same exchange contract so orders and user accounts can be shared — if they desire. This also avoids the need to setup its own infrastructure to handle block creation and creating proofs.The operator can be a simple Ethereum address, or can be a complex contract allowing multiple operators to work together to submit and prove blocks. It is left up to the exchange for how this is set up.Such an operator contract can also be used to enforce an off-chain data availability system. A simple scheme could be that multiple parties need to sign off on a block before it can be committed. This can be checked in the operator contract. As long as one member is trustworthy and actually shares the data, then data availability is assured.Similarly, the exchange owner can also be a contract! One scenario is that the exchange owner can be some sort of governance contract, or DAO, managing many DEXs within.All of this is completely left up to the DEX and can be updated when needed without disrupting the exchange.Statefulness, StickinessBecause of the above, we envision most trading will be done on a single exchange contract using contracts as the exchange owner/operator. This not only increases liquidity, but also improves the efficiency, latency and throughput because blocks contain work from all DEXs.This is also important because it dramatically enhances the possibility for ‘statefulness’ in the Loopring protocol — the act of holding valuable state, users, and liquidity. A coordinated, thriving group of DEXs will not easily disband/fork. This adds to Loopring’s defensibility, continuity, and value.[For more details on how such a group of DEXs built on one contract can implement flexible business logic and share orders/fees, see here.]One final remark on that note is, given the off-chain account balances, there is some baked-in user stickiness to a DEX that a trader uses (and likes) under this framework. So a well-performing DEX, or group of DEXs using the same contract, can build and hold a devoted user base. We’re pleased with this, because after all, it is our goal to support successful DEXs atop the protocol.Throughput and Cost Figures 🐆So let’s get to the good part— how much improvement are we looking at?Our current implementation achieves 450 trades per second on Ethereum without on-chain data availability and 80 trades per second on Ethereum with on-chain data availability. For reference, past versions of Loopring (and other DEXs) did ~2 trades per second.*Doesn’t include off-chain proof generation cost. Very conservative estimate is $0.005; likely much cheaper.And we’re just getting started: throughput will improve significantly even in the near term. With two very near term improvements alone, relating to a more efficient hash function and simplified fee circuit, we will be able to do ~10,000–20,000 rings/Ethereum block or ~1,000 trades/second without on-chain data availability.[To see how these figures were calculated, please see here.]This is incredibly exciting. At last, we have the tools to allow DEXs to approach true commercialization, and to compete against their centralized counterparts.Of course, we still have orders of magnitude to go to reach the required throughput for when millions of assets are tokenized and constantly changing hands. But we are supremely confident we will get there; by using layer two scaling solutions such as ZKPs, and riding layer one (Ethereum) scaling improvements such as sharding, etc.[On-chain data availability means the entire DEX history is available on the Ethereum chain, allowing any third party to reconstruct the state of the exchange at any point in time. Please see design doc for detail.]Other Features 🎄Scalability is the focus and driver behind protocol 3.0, but there are many other awesome features that have been implemented. Some are inherited/enhanced from 2.0, while others were only made possible in the current design. For a full list of features, check out this quick doc, and for the full spec, we highly recommend reading the full design doc. A few notables include:Option for on-chain data-availability, or DEXs can opt-out for even greater throughput & lower cost.All ERC20 tokens and ETH are supported by default. ETH is supported, no need to wrap it for WETH.All tokens can be used for trading fees, with LRC realizing benefits.Allow partial order matching (aka partial fill) and automatic order-scaling.An enhanced version of Dual Authoring prevents orders/trades from being stolen by middlemen (enhanced on top of 2.0).Support a unique feature called Order Aliasing.DEX operators can stake LRC to “buy” credit, or, skin-in-the-game.Support a “maintenance mode”, where DEX operators can purchase time to upgrade backends within a time window.A built-in mechanism to force DEX operators to fulfill duties on time (especially for handling deposits and withdrawals).Additional Utilities for LRC 🚴🏾While I won’t expand on all the features above, I’ll touch on the final three. These are super interesting because:A. They lend themselves to ensuring DEXs act even more faithfully and fairly.B. While optimizing for good behaviour, they inherently provide additional uses for LRC.StakingAn exchange stakes LRC. Anyone, not just owner/operators, can add to the stake of an exchange. Withdrawing the stake is only allowed when the exchange is properly shutdown and all user balances are withdrawn.The stake ensures that the exchange behaves correctly. This is done, among other ways, by 1) burning the stake if a block isn’t proven in time, and 2) only allowing the stake to be withdrawn when the exchange is shutdown by automatically returning the funds of all its users.Exchanges with a large stake have a lot to lose by not playing by the rules and have nothing to gain because the operator can never steal funds for itself.Note: Staking is not mandatory because security is there by default. However, it provides added skin-in-the-game, and can be used to differentiate a DEX. Importantly, however, it does guard users against data-availability problems. When data availability isn’t used, even if the Merkle tree cannot be rebuilt by anyone but the operator, this mechanism still ensures all funds will be returned to users, otherwise the exchange loses its stake.Maintenance ModeThe exchange owner can put the exchange temporarily in a suspended state. This can be used, for example, to update the back-end of the exchange.The exchange owner can purchase downtime, which means burning LRC in return for downtime. This can be done multiple times to extend the downtime.This is needed because the operator must handle on-chain requests, otherwise the exchange can go into withdrawal (shutdown) mode, which is irreversible. Maintenance mode thus allows the exchange to temporarily disable on-chain requests (which he may otherwise not be able to process in time). But these types of user requests are meant to guarantee that users can actually withdraw when they want — so the maintenance cost is to ensure an exchange cannot be in maintenance mode for an indefinite amount of time.Timely Execution for Deposits/WithdrawalsEveryone hates to wait. Especially for their money.If the exchange operator is slow to handle user withdrawals or deposits, the operator fee is reduced linearly. And if the operator doesn’t automatically transfer the tokens back to the user’s address after a withdrawal request, he is fined (from his stake), with 50% of the fine used to reward the party that wants to do it (a user can always choose to do this himself), and 50% burned.Actually, one more featureOrder aliasing is pretty cool, so let’s explain it a bit here. This allows a trader to reuse the same trade history slot in multiple orders. Besides being used to safely update an order without risk of both orders being filled, it also allows for some interesting filling logic between orders.For example, a user could create an order selling X tokenZ for either N tokenA or M tokenB (or even more tokens) while using the same ‘slot’. The user is guaranteed never to spend more than X tokenZ, but will have bought [0, N] tokenA and/or [0, M] tokenA.A real use case would be for selling a token for one of the available stablecoins. Or selling a token for ETH or WETH. In these cases, the user may be indifferent to which specific token she buys, but wants to increase her chance of being filled.Flexible fee model remainsThe fee model introduced in protocol 2.0 remains; traders and DEXs can continue to pay and earn fees in any token, but LRC receives protocol-level lower burn rates, with total supply decreasing in-line with network usage.When DEXs Feel Like CEXs 💸As mentioned at the beginning, DEX trading will no longer feel like DEX trading. In fact, we’ll probably be able to stop using the word ‘DEX’ altogether…trading crypto will just be known to happen on DEXs — obviously. 3.0 represents the beginning of this shift.Trading on a DEX built atop Loopring Protocol 3.0 will feel like you are trading as fast and easily as ever. Settlements can be signalled instantly.Trading FlowUsers create orders using accounts created on the exchange. Orders are added to the order books of the DEX.The DEX matches the order with another order, signs the ring using the ring-matcher private key and the dual-author keys of the orders. The order gets completely filled in the ring:The GUI of the DEX can be updated immediately with the state after the ring settlement. The order can be shown as filled, but not yet verified.The DEX sends the ring to the operator(s) of the exchange. Operator needs to commit the block soon after receiving rings.The operator generates the proof and verifies the block within the maximum time allowed.The DEX could now show an extra ‘Verified” symbol for the filling of the order. An order can be in the following states:Unmatched in an order-bookMatched by the DEXCommited in a blockVerified in a block by a proofFinalized when the block it was in is finalized (so all blocks before and the block containing the ring settlement are verified)Only when the block is finalized is the ring settlement irreversible.Challenges 🌔While there are a few potential challenges, the most salient is that SNARKs require ‘trusted setups’. While we won’t dig into it here, just know that some trusted setups, if not performed properly (randomly), can theoretically allow adversaries to construct false proofs. However, the good news is that this problem is largely becoming solved: Sonic: Nearly Trustless Setup.Closing Thoughts 🔭We are super thrilled by Loopring Protocol 3.0’s prospects. We feel as though the world can finally stop treating DEXs as play-things, and instead begin to appreciate that this is how value will be transferred in a tokenized future. We’re grateful to play a part in it.What’s also really striking to us is just how fast moving and fluid the DEX space is. There are dozens of protocols and projects, and even though we’ve been around a while (in crypto terms), we are 100% aware that we must stay moving and thinking or be rendered obsolete. It’s humbling and motivating.Once more, please have a look at the complete 3.0 design doc, and stay tuned for when we open the repo in the coming week. After that, we expect a testnet implementation within the next month or two, and a mainnet version within the next six months.If you’d like to get involved in building or helping out with 3.0, please reach out to foundation@loopring.org.Big Thanks🏅We’d like to thank countless contributors to making ZKP viable on Ethereum. BarryWhitehat and HarryR in particular for their work on rollup and integrating SNARKs onto Ethereum. Folks like Sean Bowe and the whole ZCash crew for their advancements. And to the great team at Matter Labs, who we look forward to collaborating with. Of course we’d be remiss if we didn’t thank Vitalik for his research in this area as well.We’d also love to thank our very own Brecht Devos, who took the lead on 3.0 and astonished us all with his learning and coding pace.Loopring Protocol 3.0 Design Doc: https://github.com/Loopring/docs/wiki/Loopring3_Design 👈🏼To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us at:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring Protocol 3.0: zkSNARKs for Scalability was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 04. 12

LRC is Available on Coinves...

LRC is listing on Coinvest Plus, a US-based Compliant ExchangeWe are excited to announce that LRC will be listed on the Coinvest Plus exchange on 8 am CDT on Thursday, April 11th and available for trade with $BTC, $ETH, $GUSD, and $COIN. Coinvest Plus is a secure and simple exchange with a low flat-rate of just $0.99 for trades and withdrawals. Coinvest Plus is a US-based exchange that is registered with the U.S. SEC, FINRA, and FINCEN, which enables experienced individuals the ability to trade a variety of digital assets on a secure, compliant platform.In addition, Coinvest Plus has an intuitive interface, advanced order book matching engine, and user-friendly tools to aid the next generation of traders in executing orders with precision and speed.About Coinvest PlusCoinvest Plus is a secure exchange for digital assets with an advanced order book matching system that pairs trades between sophisticated and institutional investors, who require advanced tools and features to perform analysis and execute trades at a higher frequency. Information and asset security is a cornerstone of Coinvest’s policies and is designed to keep sensitive information about their customers and any assets utilized within the Coinvest ecosystem secure.To stay up-to-date with Loopring, please sign up for Loopring's Bi-Weekly Update, and find us at:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)LRC is Available on Coinvest Plus, a US-based Compliant Exchange was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 04. 11

Elastum’s Deep Dive Intervi...

This interview was originally published on Elastum’s blog on Feb 27th; https://medium.com/@elastum/elastum-insiders-so-what-is-loopring-66f28a021922. It provides a great summary of our past, and a look at where we’re headed.Speaking about ring miners — have you ever wondered what is behind Loopring, how the name was created and most importantly how this amazing company has started? This week we are happy to share an interview with Matthew Finestone from Loopring!Elastum.io1. How would you describe the main vision of the project?The Loopring project is a framework that seeks to underpin the trustless, non-custodial exchange of value in a tokenized future. The project most basically consists of two parts:1. Loopring protocol — an open source set of rules and a common ‘language or logic’ that handles trade settlement on-chain (for example, of ERC20 tokens on the Ethereum blockchain),2. Loopring relayer — an off-chain system of servers concerned with communicating, sharing, and matching orders that ultimately pass through to the protocol for settlement.So, essentially, you have a set of smart contracts for the swap/settlement of assets, and you have a relay system for messaging/matching these orders off-chain.Combined, these are the components required for anyone to build a non-custodial exchange, or what is often referred to as a decentralized exchange (DEX). So Loopring falls into the bucket of a DEX protocol.Loopring simply drastically lowers the barriers — technical and economic — for a team or project to incorporate non-custodial trading functionality into their DEX/app/product. The simplest case would be for someone to put up a nice GUI, and work on the branding, UX, customer acquisition, legal, etc., and run their product. In this case, they would be using the protocol, and also our relay implementation as Matching-as-a-Service, which we think is really cool. Or, they can just use the protocol, and build their own relay — which is a higher degree of difficulty — in addition to the UI.The Loopring Foundation is a blockchain research organization that perpetuates this project and vision. In reality, the foundation is working on a few different major releases and versions, some of which may exist in parallel and serve different use cases. So you can say that the overarching vision is to build decentralized trading protocols. We really believe that if crypto is here to stay — which we believe first and foremost — then the different assets will be traded using the technology itself, and not in companies’ centralized databases as is today (or at least not solely in that manner).2. How was the Loopring name created?The name was derived from our order matching format, called ‘ring matching’. In Loopring, multiple orders can be combinatorially matched — settling in a circular manner in what we call order rings. So, trading doesn’t necessarily occur by matching two sides of one trading pair — ETH/DAI for example. Instead, it can match across ETH/DAI, DAI/LRC, LRC/OMG, OMG/KNC, KNC/ETH and so on…with each leg of the trade going to the next trader to find matches where there may not have been on a traditional matching scheme.3. About the team and supporters, what do you believe are your strengths?Loopring consists of a very strong technical team. Of the 18 current team members, only 4 are non-engineers. So I’d say our strengths lie on the development and technical side. Our founder/CEO, Daniel Wang is a very experienced engineer across a range of technologies and large multinational tech companies. You could say the team is kind of modeled in his image — very hard working, heads down, build first and talk later type of attitude.In terms of supporters, I’d say our strengths lie in our Chinese communities. Given that’s where most of the team is based, we have more mindshare and visibility over there, and it is reflected in the community. We have a tremendous community of supporters in the West as well, just smaller.4. Share how core team members entered the crypto space, maybe overcome some interesting issues.I personally came from a finance background. I was working at an investment bank that specialized in fixed income (bonds), and left that back in mid 2017. At first I was just on my own, trading, speculating, learning as much as I can. I started writing for a large crypto exchange, again mostly just to learn. I came across Loopring early on, and was just a supporter who got very interested in the project as I understood the importance of the trading protocol given my involvement with traditional securities and market structure (especially something like bonds, which is still rather archaic, trading over the phone and on Bloomberg chats!). I started communicating with the founding team, helping out, and eventually just came on board. Was super organic.As far as someone like Daniel, he has a very fitting and interesting background. He had an engineering career spanning companies like Google and JD.com. He had been involved in crypto for a while, and in 2014 he founded a centralized exchange startup, allowing people to buy and sell BTC/LTC/XRP etc. After some time, he closed it and joined ZhongAn Insurance, but in his spare time kept focusing and building on digital asset trading. That was the beginning of Loopring, and he became obsessed with it, finally quitting and starting Loopring in earnest in early/mid 2017.Loopring use case5. You are a decentralized project — how is the team distributed, how do you manage all the tasks, work? What challenges you are facing and how you are solving it?The team is distributed, but definitely has the home base in Shanghai, as well as some in Shenzhen. So most of the team is in China. I am located in Montreal for the most part, and we have an engineer in Belgium as well as San Jose. Daniel splits his time between Shanghai and New York. I think it has challenges, but also some advantages. Lots of different timezones and perhaps some weird hours — definitely some late nights. But we can cover more space and always have someone awake!As far as managing workload and tasks, the team is broadly split into protocol development, relay development, and then the business development/marketing/community building, etc.One of our challenges on the team front is certainly that we can’t necessarily build as fast as we’d like. If it were perfectly feasible, I’m sure we’d increase the team size. That’s both to speed up current development, but also to take on spinoff ideas that we can’t pursue at the moment.6. What’s the added value of Loopring in comparison with other competitors?As mentioned above, Loopring is a hybrid on-chain / off-chain decentralized exchange protocol. We use the Ethereum blockchain to settle trades, but order management happens off-chain. This hybrid architecture is similar to the 0x protocol.The differences — and in my opinion, advantages — from other hybrid trading protocols are the following:1. Ring matching: Every Loopring order is modeled as <giving-X-tokenSell-receiving-Y-tokenBuy>, or, more concisely, <X tokenS->Y tokenB>. This is akin to an exchange rate, as indeed, every order is just an exchange rate between two tokens, not necessarily a sell or a buy. We call this aunidirectional order model (UDOM), and it enables order rings: <10 X->10Y> <10Y->10Z> and <10Z->10X> can be traded in one transaction. This cannot be done using other protocols and is a built in arbitrage mechanism. Further, this is able to improve liquidity, and find matches across disparate order books.2. Dual authoring: There is a pernicious problem with DEXs called front-running, which occurs when malicious middlemen, or, even more dangerously, Ethereum miners, insert their own orders in front of users’ to take advantage of an attractive trade, or effectively steal orders. Loopring can prevent this through a mechanism called Dual Authoring.3. Fee model abstraction: In Loopring 2.0, DEXs (relayers) can accept anytoken as fee payment, not just LRC (Loopring’s token). When a relayer gets 5 DAI as a fee for matching a trade, for example, 1 DAI out of the 5 will be sent into a fee holding contract. That 1 DAI, (and the other tokens in the holding contract) will be auctioned off for LRC, and those purchased LRC will be burned automatically. For DAI, in this example, the “burn rate” was 20%, but if relayers accept LRC as fee, the rate may only be 2.5% percent, meaning they keep more of the fee, with less being burned. Either way, this guarantees LRC’s total supply will decrease over time with network usage, but doesn’t cause friction for users.4. Division of duties: In the Loopring architecture, many different types of participants can work together, focusing on what each does best, and sharing in the success/fees. As opposed to operating a DEX completely by yourself, a project can, for example, focus on building the best wallet/UI, while collaborating with a third-party relayer for backend services (Matching-as-a-Service). This backend can be the Loopring relay implementation, or their friend’s relay, or 5 relays with whom they have partnerships. Users of the wallet would be able to trade directly from the wallet, and the fees would be split by the wallet + relayer. Conversely, you can build the best relayer out there, no UI, and offer your services to all sorts of exchanges or applications that may need to manage multiple tokens, earning fees in the process. The ability to be the master of your own business is there.7. What are the use cases you are looking to cover?Loopring has thus far focused exclusively on order-based trading systems, meaning traders specify their order intentions and exchange rates (make limit orders, and take limit orders) and all the action happens on order books. This is in contrast to systems like Kyber or Uniswap that are purely on-chain liquidity providers. I call them the token store model: a user goes, requests a swap, and is shown the level at which she can execute — take it or leave it, like at a store. That is very useful, but we believe the vast majority of value and asset exchanging will happen on order-based markets, as that’s how most traditional markets operate today, and for good reason: the largest traders (professionals, institutions) are price sensitive, and they need to specify their intentions, or not execute. So building the best order-book based trading paradigm for tokens is our main focus.However, in the course of our research, we have thought up a few non-order book based systems, which approximate a novel type of auction market. We’ve alluded to that recently and have codenamed it “Oedax”. We haven’t begun developing that, but have designed it, and may build it if we have the resources, or put out a grant to the community to have it built.So in that sense, our future and ultimate vision may be broader: to build global, non-custodial, high performance trading systems. Further, any blockchain application that needs to manage multiple tokens is in our realm of teams we want to support.8. Tell more about 2.0 protocol.We deployed Loopring protocol 2.0 to Ethereum mainnet in December 2018. It is broadly similar to 1.0, but more extensible, powerful, and efficient. For example, multiple rings (which contain multiple orders) can be settled in a single Ethereum transaction. Also, now any token can be registered on the protocol, and it is fully up to different exchanges/relays which token they’d like to list/support. Furthermore, orders can now be created by a different party than the ‘order owner’ itself, by giving permission to a broker, for example.In addition, it affords a few new specific capabilities. Most notable perhaps is the flexible fee model alluded to above — in which fees can be paid in any token. That was implemented in 2.0.Also 2.0 supports other token types besides ERC20, specifically ERC1400 — which is a security token standard, and ST20, which is Polymath’s specific implementation of ERC1400. With this, exchanges that plan to trade security tokens can more easily be built atop Loopring. ERC1400 allows extra logic to be coded into tokens by the issuer, such as only being tradable amongst whitelisted addresses for regulatory compliance, and checking vesting schedules and ownership limits before transfers.9. What do you think are the key factors affecting Loopring price?I know everyone says it, but we truly don’t analyze or fret over price. Mainly because we simply don’t have the luxury of time to do so as we try and build the best protocol possible. However, we are cognizant of LRC’s utility and its place in the ecosystem, and we believe it’s a very strong one. Specifically, we believe the fee model in 2.0 is very robust, as it does not add friction, and because overall Loopring ecosystem usage translates into a deflationary supply of LRC. Ultimately, it will be Loopring network-wide usage that is the catalyst for price, or future expectations of usage, discounted to the present. In my opinion, it will only take a few high-performing DEXs to satisfy this.In terms of what’s affecting price from a ‘crypto-macro’ perspective, I am generally of the opinion that the market is not very rational at this stage. The distillation of strong projects and mechanics into strong price is not something that happens with any certitude yet. And the inverse is equally true: many ‘less-than-honest’ coins/projects are valued more highly than genuinely useful ones. As it goes, the market is a voting machine in the short term and a weighing machine in the long run; we’d much rather focus and let the tech speak — and be weighed — for itself. I’d say one of the strongest price related signals is our team members, especially at the founding level, having tremendous faith in the project/token, and actually using dips as an opportunity to buy back the token in the open market. My guess is you can probably count on two hands other projects that are doing that.10. How do you rate current ‘bear market’?It’s definitely been a big bear. 90%+ drawdowns for many altcoins is serious, and may mean the end of certain projects. That is unfortunate for some great teams and talent. At the same time, it’s needed: irrational exuberance of 2017 had to be digested. Crypto enthusiasts have just witnessed in 18 months what traditional market participants see over 18 years. The swings from greed to fear will always accompany humans in markets. Knowledge may progress and compound, but our emotions won’t.Director of Business development — Matthew FinestoneWhat’s changed in my eyes is that the barrier for a token to be worth something has been raised significantly. We must keep in mind that this whole space is so young. Everyone is making this up as they go along, which is both good and bad: innovation and destruction. There will be many more up-cycles, but it will accrue to fewer, more quality projects. There are still very high positive correlations across tokens — near +1. I suspect and hope this changes as idiosyncratic factors are evaluated instead of just binary risk on/off. Overall, I’m still super-bullish on crypto, just much more discerning at the asset level. Personally, as I’m answering this in mid/late February, I feel like the market put in a bottom (but my view doesn’t mean much :).11. Thinking about the future where is your main focus now and on further steps in a roadmap, what will bring the highest value to the community and ecosystem in general?There is tons going on for us right now. 2019 is quite frankly a huge year.Our top priority at the moment is ‘Relay 2.0’ — the second iteration of our own off-chain order messaging and matching engine. We refer to this internally as ‘Lightcone Relay’. As mentioned, this is the backend that does all the order handling and then submits it to the Loopring protocol smart contracts for settlement on-chain. We are building our own version because it is an extremely hard problem to solve. It is not just a typical matching engine. At a high level, normally, a centralized exchange backend just has to deal with one ‘state’ or data source, which only changes as traders interact with their API/UI. With a decentralized exchange ecosystem like Loopring, there is that similar API for communicating orders to keep track of, but also the state of the Ethereum blockchain itself! Remember, users keep custody of their own assets and their balances stay on chain, so we must constantly monitor those while not controlling it, and also keep aware of the blockchain state for many other things, including re-orgs, etc. Building a high performance relay while not sacrificing across any custody dimensions is very difficult. Daniel has been leading and building this part for about 6 months. It is nearly code complete, but will soon undergo tremendous testing for the next 6–8 weeks before we launch it.When we do release it, it will be very significant not just because it emulates centralized exchange functionality and performance, but because we will open this up to some partners, and effectively provide a cloud-based API service for exchange backends. This could be a game-changer, as new DEXs/apps could spin up and use this backend for Matching-as-a-Service (MaaS), and have non-custodial exchange functionality out of the box.We’ve also begun building Loopring Protocol 3.0. This is somewhat of a departure from previous releases, and uses some experimental and powerful technologies. The main benefit is huge potential throughput gains, which, of course is an important feature. Scaling is a big issue across any blockchain endeavor. Protocol 3.0 uses some awesome technologies to scale up settlement ability. Unfortunately I won’t say more about it right now, but in the next few months we will release more info. Interestingly, 3.0’s design lends itself to a very natural additional utility for LRC.Also of note is the Loopring-specific sidechain we have been building. This sidechain will be used by different relayers to communicate, share, and match orders with each other. Because it will be application-specific, it is optimized for DEX considerations such as quicker blocks, lower fees, etc.Of course, bootstrapping liquidity is of prime importance for us, and indeed for any DEX. We have been working on or planning this strategy internally as well as with some specialist partners for some time now, but have not deployed the resources until we are ready to put our best foot forward. Liquidity is paramount, and we are taking it seriously. I believe you need to work with some professional market makers, as well as open up the system to as many ‘hobbyist’ market makers or large asset holders as possible.Finally, as all of this comes together, making it a lot easier for developers and third party projects to build on us is what it’s all about. We are working with some very strong teams such as Dolomite and UP Blockchain, and will be working with many more. Any team that needs to build a DEX or incorporate non-custodial token exchange in their app will have an amazing toolkit to work with if building a top Loopring. Whether that’s just using the protocol itself, or using our relay implementation for MaaS, ecosystem partners will take center stage.You can purchase LRC directly with euros on elastum.io, an intuitive and easy to use cryptocurrency exchange platform.Thanks to Gabriele and the Elastum team for a fun interview and continued collaboration!To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us at:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Elastum’s Deep Dive Interview with Loopring was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 04. 09

LRC is listed on OnePageX

LRC is available on OnePageX, which is the simplest cryptocurrency converter in the world. They support multiple cryptocurrency conversions all from one page and there is no registration required.OnePageX believes that greatness does not have to come at the cost of complexity. They want to bring a unique service that allows people to convert currencies without wasting their time with registration and multi-step processes. That is why the entire exchange process all happens in one page in just a matter of a few clicks.About OnePageXOnePageX is a simple and fast cryptocurrency exchange with the widest selection of cryptocurrencies. It solves the problem of limited coins on an exchange platform by providing the crypto-sphere with more than 140 different cryptocurrencies, so there are more options and fewer restrictions. Users can convert assets instantly with OnePageX, and this development totally makes the exchange of cryptocurrencies less complicated and easy.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us at:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)LRC is listed on OnePageX was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 04. 05

Loopring Bi-Weekly Update —...

Loopring Bi-Weekly Update — 03/30/2019We have made excellent progress on Loopring 3.0, Oedax, and Lightcone relayer implementation. We’ll open source all of them soon in Q2.Research & DevelopmentProtocolsWe’ve finished an internal review of the design and implementation of Loopring 3.0. Based on our findings, our engineers have refined the design and have been refactoring the contracts and circuit codebase. We plan to release the 3.0 design doc first then open source the repository soon afterward.For features and optimizations that will be part of future 3.x releases, we created several issues on GitHub to track them. Once the repository is open sourced, we’ll welcome the community and developers to provide feedback.We’ve also made good progress in Oedax auction protocol implementation. Some critical components, including admin, curves, the main contract have been mostly implemented. Oedax will be open sourced after Loopring 3.0.RelayerWe’ve spent a lot of time testing lightcone relayer (designed for Loopring 2.0) and will need two more weeks before we hook it up with Ethereum mainnet. We have decided to open source the Lightcone relayer implementation in Q2.ProductsOur engineers are integrating the relayer API with the UPWallet. And in the meanwhile, we have just started to work with Rootant to design a new DEX interface to cope with Loopring 3.0 which will provide a more CEX-like user experience.Operations & Marketing03/14/2019 — LRC was listed on LiveCoin which supports LRC/BTC and LRC/ETH trading pairs.03/15/2019 — Loopring’s Matthew Finestone attended the 4th Canada-China Youth Business Forum, speaking to a young audience of tech/business folks at the China Canada Junior Chamber of Commerce.03/18/2019 — Loopring has been added onto U-News, one of the largest crypto media in China.03/21/2019 — Published Oedax model on Token Daily, a place to discover trending news and products in crypto and blockchain.03/29/2019 —Loopring was selected as one of “The 100+ Projects Pioneering Decentralized Finance” by ConsenSys.03/29/2019 — Loopring COO, Johnston, met with Bigcoinvietnam, a Vietnam’s local blockchain media company, exploring more about the Vietnam market.03/30/2019 — Loopring attended the 2019 Blockchain Investors Summit in Vietnam. COO Johnston delivered a keynote.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring Bi-Weekly Update — 03/30/2019 was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 03. 30

Loopring Bi-Weekly Update —...

Loopring Bi-Weekly Update — 03/16/2019We published the design of a new auction-based trading protocol, scheduled an LRC token contract upgrade, and made substantial progress in Loopring Protocol 3.0.Research & DevelopmentProtocolsWe have made significant progress in Loopring Protocol 3.0’s development. The current plan is to open source our GitHub repository by the end of April with a whitepaper dedicated to this new major upgrade.We have also published an auction-based protocol design called Oedax (Open-End Dutch Auction Exchange). Oedax is complementary to order-based trading protocols including Loopring and will be used by the Loopring Protocol 2.0 to automate the fee-burning feature. Oedax will be open-sourced in Q2, 2019. If you are interested in developing Oedax on infrastructures other than Ethereum, please reach out to us.We have prepared and scheduled an upgrade to our current LRC token smart contract on May 8th, 2019. After the upgrade, LRC’s total/max supply will gradually decrease according to network usage.In the near future, the fee-burning design in v2, the Oedax protocol, and the new LRC token contract will seamlessly work together and fundamentally change Loopring. Loopring Protocol 3.0 will open a new door for scaling DEXs.RelayerThe Lightcone relayer backend is code-complete. We are performing integration testing and refactoring some unit tests. The testing will last for as long as it requires, but we are trying our very best to launch a beta internally in one month. In the meanwhile, we are also documenting the new APIs for our ecosystem partners.The Lightcone relayer will be open sourced to select partners and will be available as cloud-based API services for DEXs, wallets, and market makers. It will effectively be Matching-as-a-Service for any non-custodial trading needs. If you are interested to get early access to Lightcone, please contact our operation team at service@loopring.org.ProductsWe have started to integrate UpWallet with Lightcone relayer. In the meanwhile, we are planning to redesign UpWallet to provide a much better user experience and make it more stylish. If you are experienced in crypto wallet app UX/UI design and are enthusiastic in decentralized exchange or DeFi in general, please reach out to us — we are looking for talented part-time designers.Operations & Marketing03/05/2019 — Loopring protocol developer, Brecht Devos, was in Paris for EthCC. Brecht is leading the development of the very promising Loopring Protocol 3.0.Loopring @EthCC03/06/2019 — Loopring’s Matthew Finestone attended Fintech Cadence’s Ascension accelerator to help mentor fintech startups on blockchain day.03/07/2019 — Kriptomat hosts a live video AMA with Matthew speaking about all things DEX.03/08/2019 — Loopring sponsored the ETH UofT hackathon at University of Toronto. Our main prize went to Ryan and Daniel of team PeerRing for their Android P2P trading app.Loopring @ EthUofT03/13/2019 — LRC was listed on BC Bitcoin, where users can buy and sell LRC with multiple fiat currencies.03/15/2019 — Loopring partnered with Changelly, to open LRC to USD/EUR purchasing channels. Users can use their credit cards to purchase LRC directly through Changelly.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring Bi-Weekly Update — 03/16/2019 was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 03. 16

Loopring partnered with Cha...

Loopring, a protocol for decentralized token exchange, has partnered with Changelly, a popular instant cryptocurrency exchange, to open LRC and USD(dollar)/EUR(Euro) trading channels. Users can use their credit card to purchase LRC directly through Changelly, bringing faster transactions and better rates to users.“Uniting mobile and web apps, messengers, wallets, exchanges is an outstanding feature of blockchain technology. By doing that we build a truly global decentralized ecosystem, where people can be totally in charge of their funds and cyber behavior, thus keeping anonymity as long as they find it crucial. That is why we at Changelly couldn’t be more excited to provide Loopring.org with our instant exchange widget. Plus the LRC token is now available for exchange on Changelly.com, hence uniting crypto communities of both our projects, which is awesome.” — Dmitry Burin, COO Changelly admits.Changelly is an exchange that enables complete beginners to enter the world of cryptocurrencies in a simple, safe and quick way. With Changelly, buying cryptocurrencies and exchanging them has never been easier. In addition, the company has transparent reasonable fees, and customers can trade with the best rates on the market and are charged a fixed fee of 0.5% per trade.Daniel Wang, CEO at Loopring has commented: Loopring is honored to be available on world’s well-known cryptocurrency exchange Changelly. Changelly is a simple way for any person to jump into the crypto world, and it has made remarkable contributions to the promotion of cryptocurrency globalization. We look forward to this partnership as a major step for crypto and for Loopring, by allowing usage and access to mainstream users.About LoopringLoopring is a protocol for building decentralized exchanges. Besides the protocol smart contracts, Loopring provides higher liquidity and price improvement by matching orders in the form of order-rings. With order sharing, multiple relayers can form a consortium for building a shared liquidity pool to compete with established exchanges. Also, Loopring combines off-chain order sharing and on-chain settlement.About ChangellyChangelly is a non-custodial instant cryptocurrency exchange. We act as an intermediary between crypto exchanges and users, offering access to 140+ cryptocurrencies. The company mission is making an exchange process effortless for everyone who wants to invest in cryptocurrency. Operating since 2015, the platform and its mobile app attract over a million visitors monthly who enjoy high limits, fast transactions, and 24/7 live support.Changelly offers its API and a customizable widget to any crypto service that wishes to broaden its audience and implement new exchange options. Changelly partners with MyEtherWallet, Exodus, Binance, BRD, Edge, Coinomi, Trezor, Ledger, Enjin, Coinpayments, Huobi Wallet and other well-known players in the crypto industry.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us at:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring partnered with Changelly to trade fiat-crypto with credit card was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 03. 15

Loopring partnered with Cha...

Loopring partners with Changelly to allow fiat-to-crypto with credit cardsLoopring, a protocol for decentralized token exchange, has partnered with Changelly, a popular instant cryptocurrency exchange, to open LRC to USD and EUR trading channels. Users can use their credit card to purchase LRC directly through Changelly, bringing faster transactions and better rates.“Uniting mobile and web apps, messengers, wallets, exchanges is an outstanding feature of blockchain technology. By doing that we build a truly global decentralized ecosystem, where people can be totally in charge of their funds and cyber behavior, thus keeping anonymity as long as they find it crucial. That is why we at Changelly couldn’t be more excited to provide Loopring.org with our instant exchange widget. Plus the LRC token is now available for exchange on Changelly.com, hence uniting crypto communities of both our projects, which is awesome.” — Dmitry Burin, COO Changelly admits.Changelly is an exchange that enables complete beginners to enter the world of cryptocurrencies in a simple, safe and quick way. With Changelly, buying cryptocurrencies and exchanging them has never been easier. In addition, the company has transparent reasonable fees, and customers can trade with the best rates on the market and are charged a fixed fee of 0.5% per trade.Daniel Wang, CEO at Loopring has commented: Loopring is honored to be available on world’s well-known cryptocurrency exchange Changelly. Changelly is a simple way for any person to jump into the crypto world, and it has made remarkable contributions to the promotion of cryptocurrency globalization. We look forward to this partnership as a major step for crypto and for Loopring, by allowing usage and access to mainstream users.About LoopringLoopring is a protocol for building decentralized exchanges. Besides the protocol smart contracts, Loopring provides higher liquidity and price improvement by matching orders in the form of order-rings. With order sharing, multiple relayers can form a consortium for building a shared liquidity pool to compete with established exchanges. Loopring combines off-chain order sharing and on-chain settlement.About ChangellyChangelly is a non-custodial instant cryptocurrency exchange. We act as an intermediary between crypto exchanges and users, offering access to 140+ cryptocurrencies. The company mission is making an exchange process effortless for everyone who wants to invest in cryptocurrency. Operating since 2015, the platform and its mobile app attract over a million visitors monthly who enjoy high limits, fast transactions, and 24/7 live support.Changelly offers its API and a customizable widget to any crypto service that wishes to broaden its audience and implement new exchange options. Changelly partners with MyEtherWallet, Exodus, Binance, BRD, Edge, Coinomi, Trezor, Ledger, Enjin, Coinpayments, Huobi Wallet and other well-known players in the crypto industry.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us at:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring partnered with Changelly to trade fiat-crypto with credit card was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 03. 15

Oedax: Loopring’s Open-Ende...

Oedax: Loopring’s Open-End Dutch Auction Exchange ModelWe introduce an enhanced Dutch Auction-based exchange model, Oedax, that allows both buyers and sellers to participate after an auction starts. In this post, we outline the design of such an exchange model and analyze some of its properties.Dutch AuctionIn a Dutch Auction, a fixed amount of an asset is put into the auction for sale. The initial ask price starts (much) higher than any open market prices and decreases gradually to zero, according to some pre-specified function. The dutch auction ends if and only if the actual price, calculated by dividing the accumulated money (sent by the bidders) by the number of assets (being sold by sellers), equals the ask-price at a given moment.Dutch Auctions have some desirable properties. First of all, auctions always settle, guaranteed. Secondly, all participants in the same auction get the same price for settlement, regardless when they participate in the auction and the size of their contributions. This property avoids front-running issues that most order-based exchange models suffer. This same-settlement price property, however, does have a drawback as well — participants tend to withhold until a later time to participate when the ask-price becomes more reasonable instead of during the early phase of the auction.Dutch Auction is an excellent means of price discovery, especially in a decentralized environment powered by blockchain technology. Specifically, the settlement prices in Dutch Auction can act as decentralized price oracles for smart contracts — assuming the auctions are well known and there are enough participants.The original Dutch Auction model is designed for one-way asset offering and does not allow additions of assets being sold once the auctions start. We propose an enhanced version called Open-end Dutch Auction Exchange, or Oedax, which is more like a bi-directional exchange instead of a one-way auction.Introducing OedaxWe designed Oedax to facilitate two groups of people, sellers and buyers, to exchange assets, especially cryptocurrencies or crypto tokens. Therefore, in this post, we use crypto tokens as examples for easier description, but Oedax is truly generic and can be applied to the exchange of other types of assets.Suppose sellers want to sell TokenA for TokenB, and buyers want to buy TokenA with TokenB. Oedax allows sellers to auction off TokenA to buyers for TokenB, and in the meanwhile and the very same auction, allows buyers to auction off TokenB to sellers for TokenA. Therefore an Oedax auction can be perceived as two internal-auctions seemingly integrated with shared parameters.We further suppose that the fair market price for TokenA, with respect to TokenB, is P; and the initial sell-price of TokenA in an Oedax auction is M*P where M > 1 — we call P the target price and M the price scale factor. The duration of the Oedax auction is T, which is the expected time the auction will end if no one ever participated in the auction.Then we specify two price curves, one for the selling of TokenA, i.e, the Sell Curve (or SC), and one for the buying of TokenA, i.e, the Buy Curve (or BC). These two curves are designed to satisfy the following requirements:SC(0) == P*M && SC(T) == P/M (rule#1);BC(0) == P/M && BC(T) == P*M (rule#2);There exists a time t, t ≤ T, such that SC(t) == BC(t) == P (rule#3).We further assume the amount of TokenA in the auction at any time t is Qs(t), and the amount of TokenB at any time t is Qb(t). Then a horizontal line representing the actual price p(t) = Qb(t)/Qs(t) can be drawn. We call this horizontal line the actual price line, or APL. Note that APL moves upward if more TokenB participates in the auction and downward if more TokenA participates in the auction.Price Curves (red: Sell Curve, green: Buy Curve) with T = 40, P = 2.0, M = 4.0Price Bonding and SettlementAn Oedax auction can start with zero TokenA and/or TokenB deposit, i.e, Qb(0) == Qs(0) == 0. As time passes, participants can deposit either TokenA or TokenB to change the actual price p. But Oedax applies some important price bonding rules:Once the actual price p falls in between SC and BC curves at time T’, it should always stay in between the curves to make BC(t) ≤ p(t) ≤ SC(t) hold for any t ≥ T’ until the auction ends (rule#4);The Sell Curve cannot drop further down once it meets the actual price line, but it can resume dropping once the actual price line moves downward (so there is room from the Sell Curve to drop further). When resuming dropping down, the Sell Curve must drop from its previous value. If plotted, the Sell Curve seems like it’s been cut into pieces and has been partially shifted to the right along the x-axis. The same rule applies to the Buy Curve as well, but in the opposite direction (rule#5);The converging of the Sell Curve and the Buy Curve marks the end of the auction. If the actual price line has never fallen in between the price curves, the auction will not settle and all tokens will be returned to participants; otherwise, the actual price line will certainly converge with the two price curves, and the settlement occurs. (rule#6);An Oedax auction that ends and settles at time 50 and price 3.0 — the horizontal gray lines represent the actual prices at different moments.A well-designed Oedax auction should have the actual price line be inside the Buy and Sell Curves before or immediately after the start of the auction to make sure it settles. This will boost user participation. The final settlement price is irrelevant of target price but is supposed to be close to it.PhasesOedax auctions only settle if the actual price falls in between the two bonding curves and the actual price line at time T’, we call the phase from time 0 to T’ phase-1. Phase-1 has the most uncertainties for participants and should be minimized if possible. T’ marks the start of phase-2, which has fewer uncertainties and guarantees the auction will settle.We can introduce another parameter N, and once the gap between the two price curves is smaller than or equal to N*P we enter phase-3. The other way to define phase-3 is to use time elapsed with respect to T as a measure, e.g., after 0.75T we enter phase-3. Phase-3 represents a period where participation in the auction is the least risky and the buy-sell price gap is small enough.It is certainly possible to define more phases or introduce further finer granularity for classifying auction participation. The general idea is to encourage and reward early participation which is critical for creating more liquidity, and charge fees for later participation. Conceptually, we can treat early participation as market makers and later participation as takers.Participation and CancellationIn phase-1, participants can deposit any amount of TokenA or TokenB into the auction without restrictions. If withdrawal is permitted, participants can also withdraw any amount of tokens.After phase-1 and before an auction ends, participants can still deposit more TokenA or TokenB in the auction, or withdraw from it, but there are limits on the amounts to assure BC(t) ≤ p(t) ≤ SC(t) always hold. Those limits are:The deposit limit for TokenA is Qb(t)/BC(t) — Qs(t)The deposit limit for TokenB is Qs(t)*SC(t) — Qb(t)The withdrawal limit for TokenA is Qs(t) - Qb(t)/SC(t)The withdrawal limit for TokenB is Qb(t) - Qs(t)*BC(t)To facilitate later participation in large sizes, Oedax can queue the amount beyond the current deposit limit in a waiting list, and when there is a counter-party beyond-limit deposit, Oedax will accept deposits from both buy and sell side to end up with at most one waiting list for either the sell or the buy side. The waiting list will automatically expire at the end of the auction.To discourage withdrawal, a fee may apply. An Oedax auction can be configured with withdrawal disabled.CurvesThe two price curves can be defined independently, e.g, one curve can be a straight line and the other curve can be polynomial. But since these two inner auctions are happening in parallel, it may be more reasonable to design the Buy Curve and Sell Curve in such a way that the sell-price and the buy-price develop with the same velocity. We can achieve this by binding SC and BC using:BC(t)*SC(t) == P*P (rule#7)With this binding, only one of the two curves needs to be defined to derive the other one.With this rule enforced, the curves for a TokenA/TokenB Oedax and curves for a TokenB/TokenA Oedax take the same shape. In other words, this rule makes Oedax token-symmetrical — an ABC/XYZ auction is the same as an XYZ/ABC auction. [1][1] The Loopring protocol also adapts such a similiar token-symmetrical data modeling approach — a ABC/XYZ sell order is an XYZ/ABC buy order. In our previous posts, we referred it as “unidirectional order modeling”.Oedax FeaturesOedax trading model has the following advantages:It does not rely on other types of trading platforms for price discovery or adjustment.It allows both sellers and buyers to participate in an auction after the auction starts. Oedax can even allow conditional withdrawal before the auction ends.It is possible to accept pre-submitted limit price orders and convert them into Oedax participation once the auction’s price range satisfy the order’s requirements.Oedax auction’s final settlement volume is not restricted by the initial deposit of either token and can potentially be much larger than a Dutch auction. Oedax is suited for large trades and is market-making friendly.Oedax inevitably inherits some shortcomings that Dutch Auctions have, including:The trading is not instantaneous, it takes time to end the auction;The settlement price will be reasonable (close to market price) only when the auction attracts high awareness and has enough participants.Rolling OedaxFor each trading pair, it is possible to create a series of Oedax auctions with shared parameters and a constant inter-auction delay. Once an auction ends, a new auction is automatically started[2] with a target price equal to the last settlement price. We can call such a series of Oedax auctions a “Rolling Oedax”. With enough participants, a Rolling Oedax will keep running and provide much larger trading capability than a standalone Oedax.[2]: In practice, auctions must be triggered by a user action to kick off.To participate in such a rolling auction, a user will need to participate in the earliest running Oedax auction of a series, and if the size of his/her deposit is beyond the earliest auction’s deposit limit, the remaining deposit will participate in the second-earliest auction, … If the user’s deposit is beyond the limit of all running auctions combined, the remaining deposit can be put into a waiting list which is shared by all outstanding Oedax auctions. When a new auction starts, the waiting list will be removed and all outstanding deposits in the waiting list will be converted to the initial deposits for the new auction.It is also possible to treat more recent auctions as special waiting lists for older running auctions if withdrawal is enabled, which is likely to increase the trading volume of the oldest auction yet to settle. Otherwise, settlement across multiple auctions will even out the average price of each participation (order) over a designated period of time.Rolling Oedax enables DEXs to facilitate market-price based peer-to-peer trading and guarantees that such orders will be traded with the least risky counterparties first at reasonable prices without using any price oracle.Use Oedax in LoopringOedax will be used by Loopring 2.x to achieve “Fee Burning”, a unique token economic feature that enables Loopring relayers to accept any ERC20 tokens as fees, and to pay the protocol smart contract a small percentage of the fees called the burn.Anonymous users will be able to trigger the burn to be auctioned off for LRC token in Oedax auctions, and the purchased LRC will be sent to address 0x0 automatically (our planned LRC ERC20 upgrade will treat this as a special destructive operation and reduce the total LRC supply). Oedax will automate the fee burning process in a trustless and decentralized fashion, which is an essential part of Loopring’s governance objective.The fees collected by Oedax auctions will also be auctioned off for LRC, to burn.Development & LEAF GrantOur goal is to develop Oedax as a permissionless and fully decentralized way of trading tokens. It means everybody can create auctions for all existing and future tokens at any time in arbitrary sizes — there will be no token or participant whitelist of any kind.We plan to open-source the Oedax smart contract repository on GitHub once we get ready for the initial deployment on Ethereum mainnet. In the meanwhile, if you are interested in co-developing Oedax on Ethereum or lead the effort to make it work on other platforms, please let us know. We are setting up an LRC Grant from the Loopring Ecosystem Advancement Fund (LEAF) to incentivize quality work.In the near future, we will add Oedax UI in UpWallet.We would love to hear from you. If you do feel like sharing your thoughts, please send us an email to foundation@loopring.org.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us at:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Oedax: Loopring’s Open-Ended Dutch Auction Exchange Model was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 03. 09

Oedax: Loopring’s Open-Ende...

Oedax: Loopring’s Open-End Dutch Auction Exchange ModelWe introduce an enhanced Dutch Auction-based exchange model, Oedax, that allows both buyers and sellers to participate after an auction starts. In this post, we outline the design of such an exchange model and analyze some of its properties.Dutch AuctionIn a Dutch Auction, a fixed amount of an asset is put into the auction for sale. The initial ask price starts (much) higher than any open market prices and decreases gradually to zero, according to some pre-specified function. The dutch auction ends if and only if the actual price, calculated by dividing the accumulated money (sent by the bidders) by the number of assets (being sold by sellers), equals the ask-price at a given moment.Dutch Auctions have some desirable properties. First of all, auctions always settle, guaranteed. Secondly, all participants in the same auction get the same price for settlement, regardless when they participate in the auction and the size of their contributions. This property avoids front-running issues that most order-based exchange models suffer. This same-settlement price property, however, does have a drawback as well — participants tend to withhold until a later time to participate when the ask-price becomes more reasonable instead of during the early phase of the auction.Dutch Auction is an excellent means of price discovery, especially in a decentralized environment powered by blockchain technology. Specifically, the settlement prices in Dutch Auction can act as decentralized price oracles for smart contracts — assuming the auctions are well known and there are enough participants.The original Dutch Auction model is designed for one-way asset offering and does not allow additions of assets being sold once the auctions start. We propose an enhanced version called Open-end Dutch Auction Exchange, or Oedax, which is more like a bi-directional exchange instead of a one-way auction.Introducing OedaxWe designed Oedax to facilitate two groups of people, sellers and buyers, to exchange assets, especially cryptocurrencies or crypto tokens. Therefore, in this post, we use crypto tokens as examples for easier description, but Oedax is truly generic and can be applied to the exchange of other types of assets.Suppose sellers want to sell TokenA for TokenB, and buyers want to buy TokenA with TokenB. Oedax allows sellers to auction off TokenA to buyers for TokenB, and in the meanwhile and the very same auction, allows buyers to auction off TokenB to sellers for TokenA. Therefore an Oedax auction can be perceived as two internal-auctions seemingly integrated with shared parameters.We further suppose that the fair market price for TokenA, with respect to TokenB, is P; and the initial sell-price of TokenA in an Oedax auction is M*P where M > 1 — we call P the target price and M the price scale factor. The duration of the Oedax auction is T, which is the expected time the auction will end if no one ever participated in the auction.Then we specify two price curves, one for the selling of TokenA, i.e, the Sell Curve (or SC), and one for the buying of TokenA, i.e, the Buy Curve (or BC). These two curves are designed to satisfy the following requirements:SC(0) == P*M && SC(T) == P/M (rule#1);BC(0) == P/M && BC(T) == P*M (rule#2);There exists a time t, t ≤ T, such that SC(t) == BC(t) == P (rule#3).We further assume the amount of TokenA in the auction at any time t is Qs(t), and the amount of TokenB at any time t is Qb(t). Then a horizontal line representing the actual price p(t) = Qb(t)/Qs(t) can be drawn. We call this horizontal line the actual price line, or APL. Note that APL moves upward if more TokenB participates in the auction and downward if more TokenA participates in the auction.Price Curves (red: Sell Curve, green: Buy Curve) with T = 40, P = 2.0, M = 4.0Price Bonding and SettlementAn Oedax auction can start with zero TokenA and/or TokenB deposit, i.e, Qb(0) == Qs(0) == 0. As time passes, participants can deposit either TokenA or TokenB to change the actual price p. But Oedax applies some important price bonding rules:Once the actual price p falls in between SC and BC curves at time T’, it should always stay in between the curves to make BC(t) ≤ p(t) ≤ SC(t) hold for any t ≥ T’ until the auction ends (rule#4);The Sell Curve cannot drop further down once it meets the actual price line, but it can resume dropping once the actual price line moves downward (so there is room from the Sell Curve to drop further). When resuming dropping down, the Sell Curve must drop from its previous value. If plotted, the Sell Curve seems like it’s been cut into pieces and has been partially shifted to the right along the x-axis. The same rule applies to the Buy Curve as well, but in the opposite direction (rule#5);The converging of the Sell Curve and the Buy Curve marks the end of the auction. If the actual price line has never fallen in between the price curves, the auction will not settle and all tokens will be returned to participants; otherwise, the actual price line will certainly converge with the two price curves, and the settlement occurs. (rule#6);An Oedax auction that ends and settles at time 50 and price 3.0 — the horizontal gray lines represent the actual prices at different moments.A well-designed Oedax auction should have the actual price line be inside the Buy and Sell Curves before or immediately after the start of the auction to make sure it settles. This will boost user participation. The final settlement price is irrelevant of target price but is supposed to be close to it.PhasesOedax auctions only settle if the actual price falls in between the two bonding curves and the actual price line at time T’, we call the phase from time 0 to T’ phase-1. Phase-1 has the most uncertainties for participants and should be minimized if possible. T’ marks the start of phase-2, which has fewer uncertainties and guarantees the auction will settle.We can introduce another parameter N, and once the gap between the two price curves is smaller than or equal to N*P we enter phase-3. The other way to define phase-3 is to use time elapsed with respect to T as a measure, e.g., after 0.75T we enter phase-3. Phase-3 represents a period where participation in the auction is the least risky and the buy-sell price gap is small enough.It is certainly possible to define more phases or introduce further finer granularity for classifying auction participation. The general idea is to encourage and reward early participation which is critical for creating more liquidity, and charge fees for later participation. Conceptually, we can treat early participation as market makers and recent participation as takers.Participation and CancellationIn phase-1, participants can deposit any amount of TokenA or TokenB into the auction without restrictions. If withdrawal is permitted, participants can also withdraw any amount of tokens.After phase-1 and before an auction ends, participants can still deposit more TokenA or TokenB in the auction, or withdraw from it, but there are limits on the amounts to assure BC(t) ≤ p(t) ≤ SC(t) always hold. Those limits are:The deposit limit for TokenA is Qb(t)/BC(t) — Qs(t)The deposit limit for TokenB is Qs(t)*SC(t) — Qb(t)The withdrawal limit for TokenA is Qs(t) - Qb(t)/SC(t)The withdrawal limit for TokenB is Qb(t) - Qs(t)*BC(t)To facilitate later participation in large sizes, Oedax can queue the amount beyond the current deposit limit in a waiting list, and when there is a counter-party beyond-limit deposit, Oedax will accept deposits from both buy and sell side to end up with at most one waiting list for either the sell or the buy side. The waiting list will automatically expire at the end of the auction.To discourage withdrawal, a fee may apply. An Oedax auction can be configured with withdrawal disabled.CurvesThe two price curves can be defined independently, e.g, one curve can be a straight line and the other curve can be polynomial. But since these two inner auctions are happening in parallel, it may be more reasonable to design the Buy Curve and Sell Curve in such a way that the sell-price and the buy-price develop with the same velocity. We can achieve this by binding SC and BC using:BC(t)*SC(t) == P*P (rule#7)With this binding, only one of the two curves needs to be defined to derive the other one.With this rule enforced, the curves for a TokenA/TokenB Oedax and curves for a TokenB/TokenA Oedax take the same shape. In other words, this rule makes Oedax token-symmetrical — an ABC/XYZ auction is the same as an XYZ/ABC auction. [1][1] The Loopring protocol also adapts such a similiar token-symmetrical data modeling approach — a ABC/XYZ sell order is an XYZ/ABC buy order. In our precious posts, we referred it as “unidirectional order modeling”.Oedax FeaturesOedax trading model has the following advantages:It does not rely on other types of trading platforms for price discovery or adjustment.It allows both sellers and buyers to participate in an auction after the auction starts. Oedax can even allow conditional withdrawal before the auction ends.It is possible to accept pre-submitted limit price orders and convert them into Oedax participation once the auction’s price range satisfy the order’s requirements.Oedax auction’s final settlement volume is not restricted by the initial deposit of either token and can potentially be much larger than a Dutch auction. Oedax is suited for large trades and is market-making friendly.Oedax inevitably inherits some shortcomings that Dutch Auctions have, including:The trading is not instantaneous, it takes time to end the auction;The settlement price is reasonable (close to market price) only when the auction is well aware of and has enough participants.Rolling OedaxFor each trading pair, it is possible to create a serial of Oedax auctions with shared parameters and a constant inter-auction delay. Once an auction ends, a new auction is automatically started[2] with a target price equal to the last settlement price. We can call such a serial of Oedax auctions a “Rolling Oedax”. With enough participants, a Rolling Oedax will keep running and provide much larger trading capability than a standalone Oedax.[2]: Practically auctions must be triggered by a user action to kick off.To participate in such a rolling auction, a user will need to participate in the earliest running Oedax auction of such a serial, if the size of his/her deposit is beyond the earliest auction’s deposit limit, the remaining deposit will participate in the second-earliest auction, … If the user’s deposit is beyond the limit of all running auctions combined, the remaining deposit can be put into a waiting list which is shared by all outstanding Oedax auctions. When a new auction starts, the waiting list will be removed and all outstanding deposits in the waiting list will be converted to the initial deposits for the new auction.It is also possible to treat more recent auctions as special waiting lists for older running auctions if withdrawal is enabled, which is likely to increase the trading volume of the oldest auction yet to settle. Otherwise, settlement across multiple auctions will even out the average price of each participation (order) over a designated period of time.Rolling Oedax enables DEXs to facilitate market-price based peer-to-peer trading and guarantees that such orders will be traded with the least risky counterparties first at reasonable prices without using any price oracle.Use Oedax in LoopringOedax will be used by Loopring 2.x to achieve “Fee Burning”, a unique token economic feature that enables Loopring relayers to accept any ERC20 tokens as fees, and to pay the protocol smart contract a small percentage of the fees called the burn.Anonymous users will be able to trigger the burn to be auctioned off for LRC token in Oedax auctions, and the purchased LRC will be sent to address 0x0 automatically (our planned LRC ERC20 upgrade will treat this as a special destructive operation and reduce the total LRC supply). Oedax will automate the fee burning process in a trustless and decentralized fashion, which is an essential part of Loopring’s governance objective.The fees collected by Oedax auctions will also be auctioned off for LRC, to burn.Development & LEAF GrantOur goal is to develop Oedax as a permissionless and fully decentralized way of trading tokens. It means everybody can create auctions for all existing and future tokens at any time in arbitrary sizes — there will be no token or participant whitelist of any kind.We plan to open-source the Oedax smart Ccontract repository on GitHub once we get ready for the initial deployment on Ethereum mainnet. In the meanwhile, if you are interested in co-developing Oedax on Ethereum or lead the effort to make it work on other platforms, please let us know. We are setting up an LRC Grant from the Loopring Ecosystem Advancement Fund (LEAF) to incentivize quality work.In the near future, we will add Oedax UI in UpWallet.We would love to hear from you. If you do feel like sharing your thoughts, please send us an email to foundation@loopring.org.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us at:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Oedax: Loopring’s Open-Ended Dutch Auction Exchange Model was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 03. 09

Oedax: Loopring’s Open-Ende...

Oedax: Loopring’s Open-End Dutch Auction Exchange ModelWe introduce an enhanced Dutch Auction-based exchange model, Oedax, that allows both buyers and sellers to participate after an auction starts. In this post, we outline the design of such an exchange model and analyze some of its properties.Dutch AuctionIn a Dutch Auction, a fixed amount of an asset is put into the auction for sale. The initial ask price starts (much) higher than any open market prices and decreases gradually to zero, according to some pre-specified function. The dutch auction ends if and only if the actual price, calculated by dividing the accumulated money (sent by the bidders) by the number of assets (being sold by sellers), equals the ask-price at a given moment.Dutch Auctions have some desirable properties. First of all, auctions always settle, guaranteed. Secondly, all participants in the same auction get the same price for settlement, regardless when they participate in the auction and the size of their contributions. This property avoids front-running issues that most order-based exchange models suffer. This same-settlement price property, however, does have a drawback as well — participants tend to withhold until a later time to participate when the ask-price becomes more reasonable instead of during the early phase of the auction.Dutch Auction is an excellent means of price discovery, especially in a decentralized environment powered by blockchain technology. Specifically, the settlement prices in Dutch Auction can act as decentralized price oracles for smart contracts — assuming the auctions are well known and there are enough participants.The original Dutch Auction model is designed for one-way asset offering and does not allow additions of assets being sold once the auctions start. We propose an enhanced version called Open-end Dutch Auction Exchange, or Oedax, which is more like a bi-directional exchange instead of a one-way auction.Introducing OedaxWe designed Oedax to facilitate two groups of people, sellers and buyers, to exchange assets, especially cryptocurrencies or crypto tokens. Therefore, in this post, we use crypto tokens as examples for easier description, but Oedax is truly generic and can be applied to the exchange of other types of assets.Suppose sellers want to sell TokenA for TokenB, and buyers want to buy TokenA with TokenB. Oedax allows sellers to auction off TokenA to buyers for TokenB, and in the meanwhile and the very same auction, allows buyers to auction off TokenB to sellers for TokenA. Therefore an Oedax auction can be perceived as two internal-auctions seemingly integrated with shared parameters.We further suppose that the fair market price for TokenA, with respect to TokenB, is P; and the initial sell-price of TokenA in an Oedax auction is M*P where M > 1 — we call P the target price and M the price scale factor. The duration of the Oedax auction is T, which is the expected time the auction will end if no one ever participated in the auction.Then we specify two price curves, one for the selling of TokenA, i.e, the Sell Curve (or SC), and one for the buying of TokenA, i.e, the Buy Curve (or BC). These two curves are designed to satisfy the following requirements:SC(0) == P*M && SC(T) == P/M (rule#1);BC(0) == P/M && BC(T) == P*M (rule#2);There exists a time t, t ≤ T, such that SC(t) == BC(t) == P (rule#3).We further assume the amount of TokenA in the auction at any time t is Qs(t), and the amount of TokenB at any time t is Qb(t). Then a horizontal line representing the actual price p(t) = Qb(t)/Qs(t) can be drawn. We call this horizontal line the actual price line, or APL. Note that APL moves upward if more TokenB participates in the auction and downward if more TokenA participates in the auction.Price Curves (red: Sell Curve, green: Buy Curve) with T = 40, P = 2.0, M = 4.0Price Bonding and SettlementAn Oedax auction can start with zero TokenA and/or TokenB deposit, i.e, Qb(0) == Qs(0) == 0. As time passes, participants can deposit either TokenA or TokenB to change the actual price p. But Oedax applies some important price bonding rules:Once the actual price p falls in between SC and BC curves at time T’, it should always stay in between the curves to make BC(t) ≤ p(t) ≤ SC(t) hold for any t ≥ T’ until the auction ends (rule#4);The Sell Curve cannot drop further down once it meets the actual price line, but it can resume dropping once the actual price line moves downward (so there is room from the Sell Curve to drop further). When resuming dropping down, the Sell Curve must drop from its previous value. If plotted, the Sell Curve seems like it’s been cut into pieces and has been partially shifted to the right along the x-axis. The same rule applies to the Buy Curve as well, but in the opposite direction (rule#5);The converging of the Sell Curve and the Buy Curve marks the end of the auction. If the actual price line has never fallen in between the price curves, the auction will not settle and all tokens will be returned to participants; otherwise, the actual price line will certainly converge with the two price curves, and the settlement occurs. (rule#6);An Oedax auction that ends and settles at time 50 and price 3.0 — the horizontal gray lines represent the actual prices at different moments.A well-designed Oedax auction should have the actual price line be inside the Buy and Sell Curves before or immediately after the start of the auction to make sure it settles. This will boost user participation. The final settlement price is irrelevant of target price but is supposed to be close to it.PhasesOedax auctions only settle if the actual price falls in between the two bonding curves and the actual price line at time T’, we call the phase from time 0 to T’ phase-1. Phase-1 has the most uncertainties for participants and should be minimized if possible. T’ marks the start of phase-2, which has fewer uncertainties and guarantees the auction will settle.We can introduce another parameter N, and once the gap between the two price curves is smaller than or equal to N*P we enter phase-3. The other way to define phase-3 is to use time elapsed with respect to T as a measure, e.g., after 0.75T we enter phase-3. Phase-3 represents a period where participation in the auction is the least risky and the buy-sell price gap is small enough.It is certainly possible to define more phases or introduce further finer granularity for classifying auction participation. The general idea is to encourage and reward early participation which is critical for creating more liquidity, and charge fees for later participation. Conceptually, we can treat early participation as market makers and later participation as takers.Participation and CancellationIn phase-1, participants can deposit any amount of TokenA or TokenB into the auction without restrictions. If withdrawal is permitted, participants can also withdraw any amount of tokens.After phase-1 and before an auction ends, participants can still deposit more TokenA or TokenB in the auction, or withdraw from it, but there are limits on the amounts to assure BC(t) ≤ p(t) ≤ SC(t) always hold. Those limits are:The deposit limit for TokenA is Qb(t)/BC(t) — Qs(t)The deposit limit for TokenB is Qs(t)*SC(t) — Qb(t)The withdrawal limit for TokenA is Qs(t) - Qb(t)/SC(t)The withdrawal limit for TokenB is Qb(t) - Qs(t)*BC(t)To facilitate later participation in large sizes, Oedax can queue the amount beyond the current deposit limit in a waiting list, and when there is a counter-party beyond-limit deposit, Oedax will accept deposits from both buy and sell side to end up with at most one waiting list for either the sell or the buy side. The waiting list will automatically expire at the end of the auction.To discourage withdrawal, a fee may apply. An Oedax auction can be configured with withdrawal disabled.CurvesThe two price curves can be defined independently, e.g, one curve can be a straight line and the other curve can be polynomial. But since these two inner auctions are happening in parallel, it may be more reasonable to design the Buy Curve and Sell Curve in such a way that the sell-price and the buy-price develop with the same velocity. We can achieve this by binding SC and BC using:BC(t)*SC(t) == P*P (rule#7)With this binding, only one of the two curves needs to be defined to derive the other one.With this rule enforced, the curves for a TokenA/TokenB Oedax and curves for a TokenB/TokenA Oedax take the same shape. In other words, this rule makes Oedax token-symmetrical — an ABC/XYZ auction is the same as an XYZ/ABC auction. [1][1] The Loopring protocol also adapts such a similiar token-symmetrical data modeling approach — a ABC/XYZ sell order is an XYZ/ABC buy order. In our previous posts, we referred it as “unidirectional order modeling”.Oedax FeaturesOedax trading model has the following advantages:It does not rely on other types of trading platforms for price discovery or adjustment.It allows both sellers and buyers to participate in an auction after the auction starts. Oedax can even allow conditional withdrawal before the auction ends.It is possible to accept pre-submitted limit price orders and convert them into Oedax participation once the auction’s price range satisfy the order’s requirements.Oedax auction’s final settlement volume is not restricted by the initial deposit of either token and can potentially be much larger than a Dutch auction. Oedax is suited for large trades and is market-making friendly.Oedax inevitably inherits some shortcomings that Dutch Auctions have, including:The trading is not instantaneous, it takes time to end the auction;The settlement price will be reasonable (close to market price) only when the auction attracts high awareness and has enough participants.Rolling OedaxFor each trading pair, it is possible to create a series of Oedax auctions with shared parameters and a constant inter-auction delay. Once an auction ends, a new auction is automatically started[2] with a target price equal to the last settlement price. We can call such a series of Oedax auctions a “Rolling Oedax”. With enough participants, a Rolling Oedax will keep running and provide much larger trading capability than a standalone Oedax.[2]: In practice, auctions must be triggered by a user action to kick off.To participate in such a rolling auction, a user will need to participate in the earliest running Oedax auction of a series, and if the size of his/her deposit is beyond the earliest auction’s deposit limit, the remaining deposit will participate in the second-earliest auction, … If the user’s deposit is beyond the limit of all running auctions combined, the remaining deposit can be put into a waiting list which is shared by all outstanding Oedax auctions. When a new auction starts, the waiting list will be removed and all outstanding deposits in the waiting list will be converted to the initial deposits for the new auction.It is also possible to treat more recent auctions as special waiting lists for older running auctions if withdrawal is enabled, which is likely to increase the trading volume of the oldest auction yet to settle. Otherwise, settlement across multiple auctions will even out the average price of each participation (order) over a designated period of time.Rolling Oedax enables DEXs to facilitate market-price based peer-to-peer trading and guarantees that such orders will be traded with the least risky counterparties first at reasonable prices without using any price oracle.Use Oedax in LoopringOedax will be used by Loopring 2.x to achieve “Fee Burning”, a unique token economic feature that enables Loopring relayers to accept any ERC20 tokens as fees, and to pay the protocol smart contract a small percentage of the fees called the burn.Anonymous users will be able to trigger the burn to be auctioned off for LRC token in Oedax auctions, and the purchased LRC will be sent to address 0x0 automatically (our planned LRC ERC20 upgrade will treat this as a special destructive operation and reduce the total LRC supply). Oedax will automate the fee burning process in a trustless and decentralized fashion, which is an essential part of Loopring’s governance objective.The fees collected by Oedax auctions will also be auctioned off for LRC, to burn.Development & LEAF GrantOur goal is to develop Oedax as a permissionless and fully decentralized way of trading tokens. It means everybody can create auctions for all existing and future tokens at any time in arbitrary sizes — there will be no token or participant whitelist of any kind.We plan to open-source the Oedax smart contract repository on GitHub once we get ready for the initial deployment on Ethereum mainnet. In the meanwhile, if you are interested in co-developing Oedax on Ethereum or lead the effort to make it work on other platforms, please let us know. We are setting up an LRC Grant from the Loopring Ecosystem Advancement Fund (LEAF) to incentivize quality work.In the near future, we will add Oedax UI in UpWallet.We would love to hear from you. If you do feel like sharing your thoughts, please send us an email to foundation@loopring.org.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us at:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Oedax: Loopring’s Open-Ended Dutch Auction Exchange Model was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 03. 09

Scheduled LRC Token Contrac...

TL;DRWe have scheduled an upgrade for the LRC token smart contract on May 8th, 2019 [00:00 to 24:00 Beijing time]. This will allow it to reflect the reduced LRC total supply in real-time as LRC tokens are burned by our new fee model introduced in Loopring Protocol 2.0.All LRC tokens held in account addresses will be programmatically mapped out; LRC held in contract addresses, including multisig addresses, will be taken care of case-by-case, but in the worst case scenario, will NOT be mapped out at all. See further below for more details.[Note: “Account addresses” are regular, non-contract addresses, sometimes referred to as ‘externally owned addresses’. “Contract addresses” are smart contracts.]We have notified as many exchanges and wallets as we can over the past two weeks. The following companies/products have confirmed support for our upgrade:https://medium.com/media/051b8ef4846f878b3c17f8dd587cb6a0/hrefIf you (as a user) hold LRC on an exchange that’s not on the list, please reach out to them to learn if they will support the upgrade or refer them to this post. If they won’t, you need to withdraw LRC to your own wallet.The current (old) LRC token’s smart contract address is 0xef68e7c694f40c8202821edf525de3782458639f(ENS:lrctoken.eth). The new LRC token will remain a verified ERC20-compliant token and its address will be announced before the upgrade in a separate post. After the upgrade, we will alter lrctoken.eth to point to the new address.Why we’re doing this (A quick recap of Loopring 2.0 fee model)At the end of 2018, we deployed Loopring Protocol 2.0 on Ethereum main net. Among the new features — such as greater settlement efficiency, more order types, more signature types, etc., — is the new fee model.The new fee model allows traders to pay fees in any ERC20 token: the token they’re buying, the token they’re selling, or some third token not involved in the trade at all.For example: I place an order to sell 1 WETH for 150 DAI. I can pay my trading fees to the DEX I’m trading on (e.g. Dolomite) from the sell token (WETH), from the buy token (DAI), or from my ‘bag’ of ZRX sitting on the sidelines.Importantly, though, it is also up to the DEX operator(s) to choose which tokens they would accept as fees, and thus allow their users to choose from. So, if a DEX doesn’t feel comfortable accepting fees in RandomCoinX (because they’ve never heard of it and it has no liquidity), then that is off limits.Loopring’s fee model is about flexibility for all parties involved.LRC, Loopring’s protocol token, fits into the equation without causing any friction, but while still offering benefits to traders and DEX operators, and while still coordinating the network and allowing for future growth and development.On each fee payment, there is a small piece of the fee that gets “taxed” and goes into a holding smart contract called Fee Holder.This smart contract will end up holding an assortment of different ERC20 tokens.These assorted ERC20 tokens will be auctioned off (sold) for LRC.The LRC that is purchased in these auctions will be burnt.To enable this new fee element, Burn Manager, the LRC token contract needs a new function: Burn.Logistical details about the LRC token contract upgradeSo, all of this means exciting things for Loopring — and a deflationary LRC — but it also means we must upgrade the LRC Token Contract.We have already communicated with many partners and supporting infrastructure such as exchanges, wallets, and dApps, about the upgrade. During the upgrade period, it is necessary for many of them to suspend the deposit and withdrawal of LRC and release relevant announcements. Your favorite exchanges and apps will do what’s necessary. More than likely, it means you can just sit back, but please stay tuned for their announcements like you usually would.For normal users, we ask you to please remove any LRC you may be holding in smart contracts, and hold the LRC in your non-multisig wallet of choice. This means it is best for you to hold LRC on a normal Ethereum address, the likes of which can be accessed by Metamask, MEW, MyCrypto, Ledger, Trezor, etc. Basically, during the upgrade, it’s best to keep your LRC on an Ethereum address that you yourself hold the private keys to — no matter how you hold those keys. Your existing LRC tokens will automatically transfer over to the new LRC.The Loopring Long Term Incentive Program (LTIP) is an exception to the above — given this is something we deployed, we will do the work to map out the balances and awards in a new smart contract (LTIP2) for each user. We guarantee if you withdraw LRC before the upgrade, you will receive the same amount of new LRC; otherwise, you will be able to withdraw the same amount of new LRC from LTIP2. So it is effectively a non-factor.Reach out if any questionsIf you’re an exchange, wallet, Ethereum block explorer, or any other (d)application that supports LRC, first of all, thank you :); second of all, if you haven’t received communication from us, please reach out at foundation@loopring.org.For users, please feel free to contact us if you have any questions or concerns at all. The upgrade is two months away, and we will remind the Loopring community as the date approaches.We eagerly look forward to this small step on Loopring’s path to underpin the trustless token trading systems of the future!To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Scheduled LRC Token Contract Upgrade on May 8th, 2019 was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 03. 06

Scheduled LRC Token Contrac...

TL;DRWe have scheduled an upgrade for the LRC token smart contract on May 8th, 2019 [00:00 to 24:00 Beijing time]. This will allow it to reflect the reduced LRC total supply in real-time as LRC tokens are burned by our new fee model introduced in Loopring Protocol 2.0.All LRC tokens held in account addresses will be programmatically mapped out; LRC held in contract addresses, including multisig addresses, will be taken care of case-by-case, but in the worst case scenario, will NOT be mapped out at all. See further below for more details.[Note: “Account addresses” are regular, non-contract addresses, sometimes referred to as ‘externally owned addresses’. “Contract addresses” are smart contracts.]We have notified as many exchanges and wallets as we can over the past two weeks. The following companies/products have confirmed support for our upgrade:https://medium.com/media/051b8ef4846f878b3c17f8dd587cb6a0/hrefIf you (as a user) hold LRC on an exchange that’s not on the list, please reach out to them to learn if they will support the upgrade or refer them to this post. If they won’t, you need to withdraw LRC to your own wallet.The current (old) LRC token’s smart contract address is 0xef68e7c694f40c8202821edf525de3782458639f(ENS:lrctoken.eth). The new LRC token will remain a verified ERC20-compliant token and its address will be announced before the upgrade in a separate post. After the upgrade, we will alter lrctoken.eth to point to the new address.Why we’re doing this (A quick recap of Loopring 2.0 fee model)At the end of 2018, we deployed Loopring Protocol 2.0 on Ethereum main net. Among the new features — such as greater settlement efficiency, more order types, more signature types, etc., — is the new fee model.The new fee model allows traders to pay fees in any ERC20 token: the token they’re buying, the token they’re selling, or some third token not involved in the trade at all.For example: I place an order to sell 1 WETH for 150 DAI. I can pay my trading fees to the DEX I’m trading on (e.g. Dolomite) from the sell token (WETH), from the buy token (DAI), or from my ‘bag’ of ZRX sitting on the sidelines.Importantly, though, it is also up to the DEX operator(s) to choose which tokens they would accept as fees, and thus allow their users to choose from. So, if a DEX doesn’t feel comfortable accepting fees in RandomCoinX (because they’ve never heard of it and it has no liquidity), then that is off limits.Loopring’s fee model is about flexibility for all parties involved.LRC, Loopring’s protocol token, fits into the equation without causing any friction, but while still offering benefits to traders and DEX operators, and while still coordinating the network and allowing for future growth and development.On each fee payment, there is a small piece of the fee that gets “taxed” and goes into a holding smart contract called Fee Holder.This smart contract will end up holding an assortment of different ERC20 tokens.These assorted ERC20 tokens will be auctioned off (sold) for LRC.The LRC that is purchased in these auctions will be burnt.To enable this new fee element, Burn Manager, the LRC token contract needs a new function: Burn.Logistical details about the LRC token contract upgradeSo, all of this means exciting things for Loopring — and a deflationary LRC — but it also means we must upgrade the LRC Token Contract.We have already communicated with many partners and supporting infrastructure such as exchanges, wallets, and dApps, about the upgrade. During the upgrade period, it is necessary for many of them to suspend the deposit and withdrawal of LRC and release relevant announcements. Your favorite exchanges and apps will do what’s necessary. More than likely, it means you can just sit back, but please stay tuned for their announcements like you usually would.For normal users, we ask you to please remove any LRC you may be holding in smart contracts, and hold the LRC in your non-multisig wallet of choice. This means it is best for you to hold LRC on a normal Ethereum address, the likes of which can be accessed by Metamask, MEW, MyCrypto, Ledger, Trezor, etc. Basically, during the upgrade, it’s best to keep your LRC on an Ethereum address that you yourself hold the private keys to — no matter how you hold those keys. Your existing LRC tokens will automatically transfer over to the new LRC.The Loopring Long Term Incentive Program (LTIP) is an exception to the above — given this is something we deployed, we will do the work to map out the balances and awards in a new smart contract (LTIP2) for each user. We guarantee if you withdraw LRC before the upgrade, you will receive the same amount of new LRC; otherwise, you will be able to withdraw the same amount of new LRC from LTIP2. So it is effectively a non-factor.Reach out if any questionsIf you’re an exchange, wallet, Ethereum block explorer, or any other (d)application that supports LRC, first of all, thank you :); second of all, if you haven’t received communication from us, please reach out at foundation@loopring.org.For users, please feel free to contact us if you have any questions or concerns at all. The upgrade is two months away, and we will remind the Loopring community as the date approaches.We eagerly look forward to this small step on Loopring’s path to underpin the trustless token trading systems of the future!To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Scheduled LRC Token Contract Upgrade on May 8th, 2019 was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 03. 06

Scheduled LRC Token Contrac...

TL;DRWe have scheduled an upgrade for the LRC token smart contract on May 8th, 2019 [00:00 to 24:00 Beijing time]. This will allow it to reflect the reduced LRC total supply in real-time as LRC tokens are burned by our new fee model introduced in Loopring Protocol 2.0.All LRC tokens held in account addresses will be programmatically mapped out; LRC held in contract addresses, including multisig addresses, will be taken care of case-by-case, but in the worst case scenario, will NOT be mapped out at all. See further below for more details.[Note: “Account addresses” are regular, non-contract addresses, sometimes referred to as ‘externally owned addresses’. “Contract addresses” are smart contracts.]We have notified as many exchanges and wallets as we can over the past two weeks. The following companies/products have confirmed support for our upgrade:https://medium.com/media/051b8ef4846f878b3c17f8dd587cb6a0/hrefIf you (as a user) hold LRC on an exchange that’s not on the list, please reach out to them to learn if they will support the upgrade or refer them to this post. If they won’t, you need to withdraw LRC to your own wallet.The current (old) LRC token’s smart contract address is 0xef68e7c694f40c8202821edf525de3782458639f(ENS:lrctoken.eth). The new LRC token will remain a verified ERC20-compliant token and its address will be announced before the upgrade in a separate post. After the upgrade, we will alter lrctoken.eth to point to the new address.Why we’re doing this (A quick recap of Loopring 2.0 fee model)At the end of 2018, we deployed Loopring Protocol 2.0 on Ethereum main net. Among the new features — such as greater settlement efficiency, more order types, more signature types, etc., — is the new fee model.The new fee model allows traders to pay fees in any ERC20 token: the token they’re buying, the token they’re selling, or some third token not involved in the trade at all.For example: I place an order to sell 1 WETH for 150 DAI. I can pay my trading fees to the DEX I’m trading on (e.g. Dolomite) from the sell token (WETH), from the buy token (DAI), or from my ‘bag’ of ZRX sitting on the sidelines.Importantly, though, it is also up to the DEX operator(s) to choose which tokens they would accept as fees, and thus allow their users to choose from. So, if a DEX doesn’t feel comfortable accepting fees in RandomCoinX (because they’ve never heard of it and it has no liquidity), then that is off limits.Loopring’s fee model is about flexibility for all parties involved.LRC, Loopring’s protocol token, fits into the equation without causing any friction, but while still offering benefits to traders and DEX operators, and while still coordinating the network and allowing for future growth and development.On each fee payment, there is a small piece of the fee that gets “taxed” and goes into a holding smart contract called Fee Holder.This smart contract will end up holding an assortment of different ERC20 tokens.These assorted ERC20 tokens will be auctioned off (sold) for LRC.The LRC that is purchased in these auctions will be burnt.To enable this new fee element, Burn Manager, the LRC token contract needs a new function: Burn.Logistical details about the LRC token contract upgradeSo, all of this means exciting things for Loopring — and a deflationary LRC — but it also means we must upgrade the LRC Token Contract.We have already communicated with many partners and supporting infrastructure such as exchanges, wallets, and dApps, about the upgrade. During the upgrade period, it is necessary for many of them to suspend the deposit and withdrawal of LRC and release relevant announcements. Your favorite exchanges and apps will do what’s necessary. More than likely, it means you can just sit back, but please stay tuned for their announcements like you usually would.For normal users, we ask you to please remove any LRC you may be holding in smart contracts, and hold the LRC in your non-multisig wallet of choice. This means it is best for you to hold LRC on a normal Ethereum address, the likes of which can be accessed by Metamask, MEW, MyCrypto, Ledger, Trezor, etc. Basically, during the upgrade, it’s best to keep your LRC on an Ethereum address that you yourself hold the private keys to — no matter how you hold those keys. Your existing LRC tokens will automatically transfer over to the new LRC.The Loopring Long Term Incentive Program (LTIP) is an exception to the above — given this is something we deployed, we will do the work to map out the balances and awards in a new smart contract (LTIP2) for each user. We guarantee if you withdraw LRC before the upgrade, you will receive the same amount of new LRC; otherwise, you will be able to withdraw the same amount of new LRC from LTIP2. So it is effectively a non-factor.Reach out if any questionsIf you’re an exchange, wallet, Ethereum block explorer, or any other (d)application that supports LRC, first of all, thank you :); second of all, if you haven’t received communication from us, please reach out at foundation@loopring.org.For users, please feel free to contact us if you have any questions or concerns at all. The upgrade is two months away, and we will remind the Loopring community as the date approaches.We eagerly look forward to this small step on Loopring’s path to underpin the trustless token trading systems of the future!To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Scheduled LRC Token Contract Upgrade on May 8th, 2019 was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 03. 06

Loopring & Polymath Complet...

Polymath, the securities token platform, and Loopring, the decentralized exchange protocol, announce a successful peer-to-peer test trade of ST-20 “security” tokens through Loopring protocol smart contracts.Polymath and Loopring demonstrated that an authorized trade of ST-20 security tokens was able to execute, while an unauthorized trade of ST-20 security tokens was not able to execute.Here, we can see an authorized transfer of the ST-20 token named “Cammazol”: https://etherscan.io/tx/0xfc48d28f50781b9931ee3b7a0682b5fbd58168acda96ef851ff75701d6fdaadb#eventlogAnd here, we can see an unauthorized, failed transfer of the ST-20 token named “Cammazol”: https://etherscan.io/tx/0x802505de2052fcb8766e4218f77a3135ab4984c0923b43c63bdb61d9b8b6a375#eventlogST-20 tokens can only be held and traded if certain criteria are met. To hold ST-20 tokens, wallet addresses must be added to a “whitelist” controlled by the token issuer, and tokens can only be traded if the protocol determines there are no restrictions currently in place (buy or sell lockups, for example). ST-20 security tokens created through Polymath are therefore able to maintain regulatory compliance even when traded peer-to-peer utilizing a decentralized exchange protocol such as Loopring.Additional context and technical details:One of the promises of a tokenized future is the ability for counterparties to connect and efficiently exchange all types of value — such as money, digital resources, and securities. Blockchain-based securities enable a foundational shift in the life-cycle of traditional financial assets, as well as a completely new design space for blockchain-native securities.Of the many benefits tokenization offers, the Loopring team feels that two of the most exciting are:1) Asset Interoperability — assets being able to speak with/flow across the entire Ethereum ecosystem, and2) Programmability — being able to code bespoke securities logic and jurisdictional considerations.Ultimately, these benefits filter down into more liquid markets for issuers and investors.With this in mind, platforms like Polymath aim to enable the creation of trillions of dollars worth of securities on the blockchain, while Loopring seeks to allow these securities to move fluidly in a non-custodial, global, and perfectly auditable manner.ST-20 StandardWhereas utility tokens most often take form as ERC20 compliant tokens, the community has been working towards security token standards built specifically to handle the extra logic and considerations required for securities. The ST-20 standard, which is Polymath’s implementation of ERC1400, The Security Token Standard, is one such example. Loopring also supports ERC1400, the more generalized standard, with an explanation found here.Every time an ST-20 token is traded, certain checks are made to ensure validity. The “Transfer Manager” checks to ensure that the seller (the wallet address sending ST-20 tokens) is able to sell, and the buyer (the wallet address receiving ST-20 tokens) is able to buy. When both those criteria are met, the transfer occurs. If both those criteria are not met, the transfer fails. The Transfer Manager in conjunction with the “whitelist”, which contains Ethereum wallet addresses and information associated with those wallet addresses such as buy and sell lockup restrictions and KYC/AML refresh dates, allow issuers to navigate appropriate regulations.The trading tests conducted by Polymath and Loopring were between Wrapped ETH (WETH) and Cammazol, a token compliant to the ST-20 standard. The trade occurred by accessing the Loopring Protocol 2.1 smart contracts directly. ST-20 is 100% compatible with the Loopring 2.1 smart contracts interface/order data — no need to set the token type, as the smart contract checks if the extra verifyTransfer() function exists. For this test token, there is only a single TransferManager module attached, so the only transfer restrictions are based on whether an address is whitelisted or not. Similar logic is enforced for Loopring ERC1400 support.We performed two trades. In the invalid trade, we detect with verifyTransfer that the destination address isn’t whitelisted, and throw an InvalidRing event without failing the transaction. This means that if there were other rings in the transaction they would still settle.This capability of settling multiple rings per transaction was added in Loopring protocol 2.0. A ring contains 2 to 8 orders which are matched in circular, combinatorial fashion. This allows DEXs to more efficiently match orders, as the protocol can batch all kinds of things like token transfers, state updates, etc. We make sure that all token transfers for a ring will be successful by checking available balances, and also checking with verifyTransfer for ST-20 tokens. If a ring cannot be settled for any reason, we emit an InvalidRing event and skip the ring.Other reasons for a potential Invalid transfer besides addresses not being whitelisted are if the transfer would result in more investors holding the token than is allowed according to the security’s structure.This programmable logic is an important improvement for the current private securities stack, especially as it pertains to secondary trading. With the ST-20 standard, the burden of manually and constantly handling compliance is removed.Looking ForwardWhile the ability to trade security tokens across non-custodial exchanges is exciting, the greatest possibilities may come from those combining Polymath issuance and Loopring trading into one platform or product — a full-suite service capable of handling the entire tokenized securities lifecycle. Decentralized exchanges such as Dolomite may be able to further enhance their trading and portfolio management tools by offering users a security token portal as well — subject to appropriate regulatory licensing.From this portal, asset owners and issuers can compliantly organize, launch, and manage their offerings, while having a built-in venue to engage investors and facilitate trade. Investors, on the other hand, would be able to easily access the extra information surrounding their security tokens, such as any rights or restrictions, and be able to trade directly from their wallet.About PolymathPolymath is a decentralized platform that makes it easy to create security tokens. The platform simplifies the complex technical challenges of creating a security token and aims to bring the multi-trillion dollar financial securities market to the blockchainAbout LoopringLoopring is a decentralized exchange protocol allowing anyone to build DEXs or otherwise incorporate non-custodial exchange functionality. Orders are communicated off-chain with settlement occurring on-chain. Loopring also enables Matching-as-a-Service between wallets and ring-miners.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring & Polymath Completed ST-20 Security Token Trading Tests was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 03. 04

Loopring & Polymath Complet...

Polymath, the securities token platform, and Loopring, the decentralized exchange protocol, announce a successful peer-to-peer test trade of ST-20 “security” tokens through Loopring protocol smart contracts.Polymath and Loopring demonstrated that an authorized trade of ST-20 security tokens was able to execute, while an unauthorized trade of ST-20 security tokens was not able to execute.Here, we can see an authorized transfer of the ST-20 token named “Cammazol”: https://etherscan.io/tx/0xfc48d28f50781b9931ee3b7a0682b5fbd58168acda96ef851ff75701d6fdaadb#eventlogAnd here, we can see an unauthorized, failed transfer of the ST-20 token named “Cammazol”: https://etherscan.io/tx/0x802505de2052fcb8766e4218f77a3135ab4984c0923b43c63bdb61d9b8b6a375#eventlogST-20 tokens can only be held and traded if certain criteria are met. To hold ST-20 tokens, wallet addresses must be added to a “whitelist” controlled by the token issuer, and tokens can only be traded if the protocol determines there are no restrictions currently in place (buy or sell lockups, for example). ST-20 security tokens created through Polymath are therefore able to maintain regulatory compliance even when traded peer-to-peer utilizing a decentralized exchange protocol such as Loopring.Additional context and technical details:One of the promises of a tokenized future is the ability for counterparties to connect and efficiently exchange all types of value — such as money, digital resources, and securities. Blockchain-based securities enable a foundational shift in the life-cycle of traditional financial assets, as well as a completely new design space for blockchain-native securities.Of the many benefits tokenization offers, the Loopring team feels that two of the most exciting are:1) Asset Interoperability — assets being able to speak with/flow across the entire Ethereum ecosystem, and2) Programmability — being able to code bespoke securities logic and jurisdictional considerations.Ultimately, these benefits filter down into more liquid markets for issuers and investors.With this in mind, platforms like Polymath aim to enable the creation of trillions of dollars worth of securities on the blockchain, while Loopring seeks to allow these securities to move fluidly in a non-custodial, global, and perfectly auditable manner.ST-20 StandardWhereas utility tokens most often take form as ERC20 compliant tokens, the community has been working towards security token standards built specifically to handle the extra logic and considerations required for securities. The ST-20 standard, which is Polymath’s implementation of ERC1400, The Security Token Standard, is one such example. Loopring also supports ERC1400, the more generalized standard, with an explanation found here.Every time an ST-20 token is traded, certain checks are made to ensure validity. The “Transfer Manager” checks to ensure that the seller (the wallet address sending ST-20 tokens) is able to sell, and the buyer (the wallet address receiving ST-20 tokens) is able to buy. When both those criteria are met, the transfer occurs. If both those criteria are not met, the transfer fails. The Transfer Manager in conjunction with the “whitelist”, which contains Ethereum wallet addresses and information associated with those wallet addresses such as buy and sell lockup restrictions and KYC/AML refresh dates, allow issuers to navigate appropriate regulations.The trading tests conducted by Polymath and Loopring were between Wrapped ETH (WETH) and Cammazol, a token compliant to the ST-20 standard. The trade occurred by accessing the Loopring Protocol 2.1 smart contracts directly. ST-20 is 100% compatible with the Loopring 2.1 smart contracts interface/order data — no need to set the token type, as the smart contract checks if the extra verifyTransfer() function exists. For this test token, there is only a single TransferManager module attached, so the only transfer restrictions are based on whether an address is whitelisted or not. Similar logic is enforced for Loopring ERC1400 support.We performed two trades. In the invalid trade, we detect with verifyTransfer that the destination address isn’t whitelisted, and throw an InvalidRing event without failing the transaction. This means that if there were other rings in the transaction they would still settle.This capability of settling multiple rings per transaction was added in Loopring protocol 2.0. A ring contains 2 to 8 orders which are matched in circular, combinatorial fashion. This allows DEXs to more efficiently match orders, as the protocol can batch all kinds of things like token transfers, state updates, etc. We make sure that all token transfers for a ring will be successful by checking available balances, and also checking with verifyTransfer for ST-20 tokens. If a ring cannot be settled for any reason, we emit an InvalidRing event and skip the ring.Other reasons for a potential Invalid transfer besides addresses not being whitelisted are if the transfer would result in more investors holding the token than is allowed according to the security’s structure.This programmable logic is an important improvement for the current private securities stack, especially as it pertains to secondary trading. With the ST-20 standard, the burden of manually and constantly handling compliance is removed.Looking ForwardWhile the ability to trade security tokens across non-custodial exchanges is exciting, the greatest possibilities may come from those combining Polymath issuance and Loopring trading into one platform or product — a full-suite service capable of handling the entire tokenized securities lifecycle. Decentralized exchanges such as Dolomite may be able to further enhance their trading and portfolio management tools by offering users a security token portal as well — subject to appropriate regulatory licensing.From this portal, asset owners and issuers can compliantly organize, launch, and manage their offerings, while having a built-in venue to engage investors and facilitate trade. Investors, on the other hand, would be able to easily access the extra information surrounding their security tokens, such as any rights or restrictions, and be able to trade directly from their wallet.About PolymathPolymath is a decentralized platform that makes it easy to create security tokens. The platform simplifies the complex technical challenges of creating a security token and aims to bring the multi-trillion dollar financial securities market to the blockchainAbout LoopringLoopring is a decentralized exchange protocol allowing anyone to build DEXs or otherwise incorporate non-custodial exchange functionality. Orders are communicated off-chain with settlement occurring on-chain. Loopring also enables Matching-as-a-Service between wallets and ring-miners.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring & Polymath Completed ST-20 Security Token Trading Tests was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 03. 04

Loopring & Polymath Complet...

Polymath, the securities token platform, and Loopring, the decentralized exchange protocol, announce a successful peer-to-peer test trade of ST-20 “security” tokens through Loopring protocol smart contracts.Polymath and Loopring demonstrated that an authorized trade of ST-20 security tokens was able to execute, while an unauthorized trade of ST-20 security tokens was not able to execute.Here, we can see an authorized transfer of the ST-20 token named “Cammazol”: https://etherscan.io/tx/0xfc48d28f50781b9931ee3b7a0682b5fbd58168acda96ef851ff75701d6fdaadb#eventlogAnd here, we can see an unauthorized, failed transfer of the ST-20 token named “Cammazol”: https://etherscan.io/tx/0x802505de2052fcb8766e4218f77a3135ab4984c0923b43c63bdb61d9b8b6a375#eventlogST-20 tokens can only be held and traded if certain criteria are met. To hold ST-20 tokens, wallet addresses must be added to a “whitelist” controlled by the token issuer, and tokens can only be traded if the protocol determines there are no restrictions currently in place (buy or sell lockups, for example). ST-20 security tokens created through Polymath are therefore able to maintain regulatory compliance even when traded peer-to-peer utilizing a decentralized exchange protocol such as Loopring.Additional context and technical details:One of the promises of a tokenized future is the ability for counterparties to connect and efficiently exchange all types of value — such as money, digital resources, and securities. Blockchain-based securities enable a foundational shift in the life-cycle of traditional financial assets, as well as a completely new design space for blockchain-native securities.Of the many benefits tokenization offers, the Loopring team feels that two of the most exciting are:1) Asset Interoperability — assets being able to speak with/flow across the entire Ethereum ecosystem, and2) Programmability — being able to code bespoke securities logic and jurisdictional considerations.Ultimately, these benefits filter down into more liquid markets for issuers and investors.With this in mind, platforms like Polymath aim to enable the creation of trillions of dollars worth of securities on the blockchain, while Loopring seeks to allow these securities to move fluidly in a non-custodial, global, and perfectly auditable manner.ST-20 StandardWhereas utility tokens most often take form as ERC20 compliant tokens, the community has been working towards security token standards built specifically to handle the extra logic and considerations required for securities. The ST-20 standard, which is Polymath’s implementation of ERC1400, The Security Token Standard, is one such example. Loopring also supports ERC1400, the more generalized standard, with an explanation found here.Every time an ST-20 token is traded, certain checks are made to ensure validity. The “Transfer Manager” checks to ensure that the seller (the wallet address sending ST-20 tokens) is able to sell, and the buyer (the wallet address receiving ST-20 tokens) is able to buy. When both those criteria are met, the transfer occurs. If both those criteria are not met, the transfer fails. The Transfer Manager in conjunction with the “whitelist”, which contains Ethereum wallet addresses and information associated with those wallet addresses such as buy and sell lockup restrictions and KYC/AML refresh dates, allow issuers to navigate appropriate regulations.The trading tests conducted by Polymath and Loopring were between Wrapped ETH (WETH) and Cammazol, a token compliant to the ST-20 standard. The trade occurred by accessing the Loopring Protocol 2.1 smart contracts directly. ST-20 is 100% compatible with the Loopring 2.1 smart contracts interface/order data — no need to set the token type, as the smart contract checks if the extra verifyTransfer() function exists. For this test token, there is only a single TransferManager module attached, so the only transfer restrictions are based on whether an address is whitelisted or not. Similar logic is enforced for Loopring ERC1400 support.We performed two trades. In the invalid trade, we detect with verifyTransfer that the destination address isn’t whitelisted, and throw an InvalidRing event without failing the transaction. This means that if there were other rings in the transaction they would still settle.This capability of settling multiple rings per transaction was added in Loopring protocol 2.0. A ring contains 2 to 8 orders which are matched in circular, combinatorial fashion. This allows DEXs to more efficiently match orders, as the protocol can batch all kinds of things like token transfers, state updates, etc. We make sure that all token transfers for a ring will be successful by checking available balances, and also checking with verifyTransfer for ST-20 tokens. If a ring cannot be settled for any reason, we emit an InvalidRing event and skip the ring.Other reasons for a potential Invalid transfer besides addresses not being whitelisted are if the transfer would result in more investors holding the token than is allowed according to the security’s structure.This programmable logic is an important improvement for the current private securities stack, especially as it pertains to secondary trading. With the ST-20 standard, the burden of manually and constantly handling compliance is removed.Looking ForwardWhile the ability to trade security tokens across non-custodial exchanges is exciting, the greatest possibilities may come from those combining Polymath issuance and Loopring trading into one platform or product — a full-suite service capable of handling the entire tokenized securities lifecycle. Decentralized exchanges such as Dolomite may be able to further enhance their trading and portfolio management tools by offering users a security token portal as well — subject to appropriate regulatory licensing.From this portal, asset owners and issuers can compliantly organize, launch, and manage their offerings, while having a built-in venue to engage investors and facilitate trade. Investors, on the other hand, would be able to easily access the extra information surrounding their security tokens, such as any rights or restrictions, and be able to trade directly from their wallet.About PolymathPolymath is a decentralized platform that makes it easy to create security tokens. The platform simplifies the complex technical challenges of creating a security token and aims to bring the multi-trillion dollar financial securities market to the blockchainAbout LoopringLoopring is a decentralized exchange protocol allowing anyone to build DEXs or otherwise incorporate non-custodial exchange functionality. Orders are communicated off-chain with settlement occurring on-chain. Loopring also enables Matching-as-a-Service between wallets and ring-miners.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring & Polymath Completed ST-20 Security Token Trading Tests was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 03. 04

Loopring & Polymath Complet...

Polymath, the securities token platform, and Loopring, the decentralized exchange protocol, announce a successful peer-to-peer test trade of ST-20 “security” tokens through Loopring protocol smart contracts.Polymath and Loopring demonstrated that an authorized trade of ST-20 security tokens was able to execute, while an unauthorized trade of ST-20 security tokens was not able to execute.Here, we can see an authorized transfer of the ST-20 token named “Cammazol”: https://etherscan.io/tx/0xfc48d28f50781b9931ee3b7a0682b5fbd58168acda96ef851ff75701d6fdaadb#eventlogAnd here, we can see an unauthorized, failed transfer of the ST-20 token named “Cammazol”: https://etherscan.io/tx/0x802505de2052fcb8766e4218f77a3135ab4984c0923b43c63bdb61d9b8b6a375#eventlogST-20 tokens can only be held and traded if certain criteria are met. To hold ST-20 tokens, wallet addresses must be added to a “whitelist” controlled by the token issuer, and tokens can only be traded if the protocol determines there are no restrictions currently in place (buy or sell lockups, for example). ST-20 security tokens created through Polymath are therefore able to maintain regulatory compliance even when traded peer-to-peer utilizing a decentralized exchange protocol such as Loopring.Additional context and technical details:One of the promises of a tokenized future is the ability for counterparties to connect and efficiently exchange all types of value — such as money, digital resources, and securities. Blockchain-based securities enable a foundational shift in the life-cycle of traditional financial assets, as well as a completely new design space for blockchain-native securities.Of the many benefits tokenization offers, the Loopring team feels that two of the most exciting are:1) Asset Interoperability — assets being able to speak with/flow across the entire Ethereum ecosystem, and2) Programmability — being able to code bespoke securities logic and jurisdictional considerations.Ultimately, these benefits filter down into more liquid markets for issuers and investors.With this in mind, platforms like Polymath aim to enable the creation of trillions of dollars worth of securities on the blockchain, while Loopring seeks to allow these securities to move fluidly in a non-custodial, global, and perfectly auditable manner.ST-20 StandardWhereas utility tokens most often take form as ERC20 compliant tokens, the community has been working towards security token standards built specifically to handle the extra logic and considerations required for securities. The ST-20 standard, which is Polymath’s implementation of ERC1400, The Security Token Standard, is one such example. Loopring also supports ERC1400, the more generalized standard, with an explanation found here.Every time an ST-20 token is traded, certain checks are made to ensure validity. The “Transfer Manager” checks to ensure that the seller (the wallet address sending ST-20 tokens) is able to sell, and the buyer (the wallet address receiving ST-20 tokens) is able to buy. When both those criteria are met, the transfer occurs. If both those criteria are not met, the transfer fails. The Transfer Manager in conjunction with the “whitelist”, which contains Ethereum wallet addresses and information associated with those wallet addresses such as buy and sell lockup restrictions and KYC/AML refresh dates, allow issuers to navigate appropriate regulations.The trading tests conducted by Polymath and Loopring were between Wrapped ETH (WETH) and Cammazol, a token compliant to the ST-20 standard. The trade occurred by accessing the Loopring Protocol 2.1 smart contracts directly. ST-20 is 100% compatible with the Loopring 2.1 smart contracts interface/order data — no need to set the token type, as the smart contract checks if the extra verifyTransfer() function exists. For this test token, there is only a single TransferManager module attached, so the only transfer restrictions are based on whether an address is whitelisted or not. Similar logic is enforced for Loopring ERC1400 support.We performed two trades. In the invalid trade, we detect with verifyTransfer that the destination address isn’t whitelisted, and throw an InvalidRing event without failing the transaction. This means that if there were other rings in the transaction they would still settle.This capability of settling multiple rings per transaction was added in Loopring protocol 2.0. A ring contains 2 to 8 orders which are matched in circular, combinatorial fashion. This allows DEXs to more efficiently match orders, as the protocol can batch all kinds of things like token transfers, state updates, etc. We make sure that all token transfers for a ring will be successful by checking available balances, and also checking with verifyTransfer for ST-20 tokens. If a ring cannot be settled for any reason, we emit an InvalidRing event and skip the ring.Other reasons for a potential Invalid transfer besides addresses not being whitelisted are if the transfer would result in more investors holding the token than is allowed according to the security’s structure.This programmable logic is an important improvement for the current private securities stack, especially as it pertains to secondary trading. With the ST-20 standard, the burden of manually and constantly handling compliance is removed.Looking ForwardWhile the ability to trade security tokens across non-custodial exchanges is exciting, the greatest possibilities may come from those combining Polymath issuance and Loopring trading into one platform or product — a full-suite service capable of handling the entire tokenized securities lifecycle. Decentralized exchanges such as Dolomite may be able to further enhance their trading and portfolio management tools by offering users a security token portal as well — subject to appropriate regulatory licensing.From this portal, asset owners and issuers can compliantly organize, launch, and manage their offerings, while having a built-in venue to engage investors and facilitate trade. Investors, on the other hand, would be able to easily access the extra information surrounding their security tokens, such as any rights or restrictions, and be able to trade directly from their wallet.About PolymathPolymath is a decentralized platform that makes it easy to create security tokens. The platform simplifies the complex technical challenges of creating a security token and aims to bring the multi-trillion dollar financial securities market to the blockchainAbout LoopringLoopring is a decentralized exchange protocol allowing anyone to build DEXs or otherwise incorporate non-custodial exchange functionality. Orders are communicated off-chain with settlement occurring on-chain. Loopring also enables Matching-as-a-Service between wallets and ring-miners.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring & Polymath Completed ST-20 Security Token Trading Tests was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 03. 04

Loopring Bi-Weekly Update —...

Loopring Bi-Weekly Update — 03/02/2019After some time off for the Lunar New Year holiday, the Loopring team returned in full force in mid-February. Now we are back in action and ready to rock. A talented and experienced UI/UX designer has joined us last week. Our global community hosted a few meetups in Australia and North America. We’ve made great Protocol and Relay progress, had a few deep dive interviews, and Polymath successfully trialed peer-to-peer trading of security tokens over the Loopring protocol.Protocol 2.0The Protocol team has been working with the Relay team on integration testing in the past two weeks. We have completed testing for order parameters processing, encoding, and decoding, signing transactions, order matching, and event logs.Having previously implemented support for the ST20 token standard, Polymath’s implementation of the ERC1400 security token standard, we have now successfully completed test trades. Whitelisted addresses were able to settle trades over the Loopring protocol, while non-whitelisted addresses failed. Coindesk writeup here.RelayLightcone (Relay 2.0)We have completed most of the functionalities for Relay 2.0, so we have started reviewing those functionalities and workflows to ensure the quality and the stability of the system.Completed optimizations for wallet account management and updating order status.Implemented processing of Ethereum fork.Implemented web socket API, including monitoring pending trade.Completed logging, deployment and system monitoring.We have also written basic code for integration testing, preparing for more testings in the future.Finally, we are working on refactoring event logs, wallet account activities and others.Frontend & ProductiOS & AndroidWe have released version 1.6.2 and 1.6.3 of both iOS and Android apps. In Android development, we have fixed several bugs and re-launched app on Baidu App Store. In iOS development, we have updated the app enterprise certificates, allowing users to continue using the enterprise iOS app. In addition, we have updated the trade order form to be closer to the UI of centralized exchanges. It makes it easier for new users to learn how to use our apps. At the same time, we have started researching wallet backup methods on third-party cloud platforms. We have investigated Google Drive, iCloud, Dropbox and other cloud platforms. We believe this feature will simplify workflows and we will continue the development.We are happy to welcome a new designer to the team, Dennis Ge. Through our discussion, it’s clear he is super familiar with the main value proposition of our apps and many others in the space. We have been focusing on the core value of wallets, but also on the visual aesthetics and additional, interactive features. We have started designing an exciting new UI. In the next steps, we will present an initial plan, work with the team to make the new design goal and improve the products gradually. He will definitely make a significant contribution and impact on our products.Operations & Marketing02/06/2019 — LRC is listed on Freewallet.02/12/2019 — Loopring published a comprehensive 29-page Stablecoin Report with PwC. Full report here, synopsis here.02/14/2019 — Ethfinex listed LRC on their platform and organized the Loopring AMA on the Ethfinex Telegram.02/15/2019 — Loopring collaborates with Sydney-based blockchain community bitfwd to host workshops, build open source tools, and help advance decentralized solutions.02/15/2019 — Loopring co-hosts a DEX meetup in Sydney with HaymarketHQ and Next Genius Community to discuss all things DEX, and the Loopring landscape.02/15/2019 — Dolomite Bi-Weekly Update02/19/2019 — Loopring (LRC) is now on ZILLA Wallet. ZILLA makes it easy to get blockchain event tickets with LRC and manage crypto assets all in one App.02/22/2019 — The Loopring Long Term Incentive Program begins the allowed withdrawal phase.02/27/2019 — Loopring BD director, Matthew, is interviewed by Elastum, a gateway to enter the crypto market with fiat, and shares thoughts regarding Loopring’s past, present, and future.02/27/2019 — Loopring continues to work with Polymath to further peer-to-peer trading of security tokens on a decentralized exchange.Coming up this month, you can find Loopring around Hong Kong Blockchain Week, EthCC, ETHParis, and ETHUofT (University of Toronto). Reach out if you’re around! We will sponsor ETHUofT hackathon on March 8–10. Stay tuned for our imminent project request and prize!Kriptomat will host a live video AMA with Loopring’s Matthew Finestone on March 7th.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring Bi-Weekly Update — 03/02/2019 was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 03. 02

Loopring Bi-Weekly Update —...

Loopring Bi-Weekly Update — 03/02/2019After some time off for the Lunar New Year holiday, the Loopring team returned in full force in mid-February. Now we are back in action and ready to rock. A talented and experienced UI/UX designer has joined us last week. Our global community hosted a few meetups in Australia and North America. We’ve made great Protocol and Relay progress, had a few deep dive interviews, and Polymath successfully trialed peer-to-peer trading of security tokens over the Loopring protocol.Protocol 2.0The Protocol team has been working with the Relay team on integration testing in the past two weeks. We have completed testing for order parameters processing, encoding, and decoding, signing transactions, order matching, and event logs.Having previously implemented support for the ST20 token standard, Polymath’s implementation of the ERC1400 security token standard, we have now successfully completed test trades. Whitelisted addresses were able to settle trades over the Loopring protocol, while non-whitelisted addresses failed. Coindesk writeup here.RelayLightcone (Relay 2.0)We have completed most of the functionalities for Relay 2.0, so we have started reviewing those functionalities and workflows to ensure the quality and the stability of the system.Completed optimizations for wallet account management and updating order status.Implemented processing of Ethereum fork.Implemented web socket API, including monitoring pending trade.Completed logging, deployment and system monitoring.We have also written basic code for integration testing, preparing for more testings in the future.Finally, we are working on refactoring event logs, wallet account activities and others.Frontend & ProductiOS & AndroidWe have released version 1.6.2 and 1.6.3 of both iOS and Android apps. In Android development, we have fixed several bugs and re-launched app on Baidu App Store. In iOS development, we have updated the app enterprise certificates, allowing users to continue using the enterprise iOS app. In addition, we have updated the trade order form to be closer to the UI of centralized exchanges. It makes it easier for new users to learn how to use our apps. At the same time, we have started researching wallet backup methods on third-party cloud platforms. We have investigated Google Drive, iCloud, Dropbox and other cloud platforms. We believe this feature will simplify workflows and we will continue the development.We are happy to welcome a new designer to the team, Dennis Ge. Through our discussion, it’s clear he is super familiar with the main value proposition of our apps and many others in the space. We have been focusing on the core value of wallets, but also on the visual aesthetics and additional, interactive features. We have started designing an exciting new UI. In the next steps, we will present an initial plan, work with the team to make the new design goal and improve the products gradually. He will definitely make a significant contribution and impact on our products.Operations & Marketing02/06/2019 — LRC is listed on Freewallet.02/12/2019 — Loopring published a comprehensive 29-page Stablecoin Report with PwC. Full report here, synopsis here.02/14/2019 — Ethfinex listed LRC on their platform and organized the Loopring AMA on the Ethfinex Telegram.02/15/2019 — Loopring collaborates with Sydney-based blockchain community bitfwd to host workshops, build open source tools, and help advance decentralized solutions.02/15/2019 — Loopring co-hosts a DEX meetup in Sydney with HaymarketHQ and Next Genius Community to discuss all things DEX, and the Loopring landscape.02/15/2019 — Dolomite Bi-Weekly Update02/19/2019 — Loopring (LRC) is now on ZILLA Wallet. ZILLA makes it easy to get blockchain event tickets with LRC and manage crypto assets all in one App.02/22/2019 — The Loopring Long Term Incentive Program begins the allowed withdrawal phase.02/27/2019 — Loopring BD director, Matthew, is interviewed by Elastum, a gateway to enter the crypto market with fiat, and shares thoughts regarding Loopring’s past, present, and future.02/27/2019 — Loopring continues to work with Polymath to further peer-to-peer trading of security tokens on a decentralized exchange.Coming up this month, you can find Loopring around Hong Kong Blockchain Week, EthCC, ETHParis, and ETHUofT (University of Toronto). Reach out if you’re around! We will sponsor ETHUofT hackathon on March 8–10. Stay tuned for our imminent project request and prize!Kriptomat will host a live video AMA with Loopring’s Matthew Finestone on March 7th.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring Bi-Weekly Update — 03/02/2019 was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 03. 02

Loopring Bi-Weekly Update —...

Loopring Bi-Weekly Update — 03/02/2019After some time off for the Lunar New Year holiday, the Loopring team returned in full force in mid-February. Now we are back in action and ready to rock. A talented and experienced UI/UX designer has joined us last week. Our global community hosted a few meetups in Australia and North America. We’ve made great Protocol and Relay progress, had a few deep dive interviews, and Polymath successfully trialed peer-to-peer trading of security tokens over the Loopring protocol.Protocol 2.0The Protocol team has been working with the Relay team on integration testing in the past two weeks. We have completed testing for order parameters processing, encoding, and decoding, signing transactions, order matching, and event logs.Having previously implemented support for the ST20 token standard, Polymath’s implementation of the ERC1400 security token standard, we have now successfully completed test trades. Whitelisted addresses were able to settle trades over the Loopring protocol, while non-whitelisted addresses failed. Coindesk writeup here.RelayLightcone (Relay 2.0)We have completed most of the functionalities for Relay 2.0, so we have started reviewing those functionalities and workflows to ensure the quality and the stability of the system.Completed optimizations for wallet account management and updating order status.Implemented processing of Ethereum fork.Implemented web socket API, including monitoring pending trade.Completed logging, deployment and system monitoring.We have also written basic code for integration testing, preparing for more testings in the future.Finally, we are working on refactoring event logs, wallet account activities and others.Frontend & ProductiOS & AndroidWe have released version 1.6.2 and 1.6.3 of both iOS and Android apps. In Android development, we have fixed several bugs and re-launched app on Baidu App Store. In iOS development, we have updated the app enterprise certificates, allowing users to continue using the enterprise iOS app. In addition, we have updated the trade order form to be closer to the UI of centralized exchanges. It makes it easier for new users to learn how to use our apps. At the same time, we have started researching wallet backup methods on third-party cloud platforms. We have investigated Google Drive, iCloud, Dropbox and other cloud platforms. We believe this feature will simplify workflows and we will continue the development.We are happy to welcome a new designer to the team, Dennis Ge. Through our discussion, it’s clear he is super familiar with the main value proposition of our apps and many others in the space. We have been focusing on the core value of wallets, but also on the visual aesthetics and additional, interactive features. We have started designing an exciting new UI. In the next steps, we will present an initial plan, work with the team to make the new design goal and improve the products gradually. He will definitely make a significant contribution and impact on our products.Operations & Marketing02/06/2019 — LRC is listed on Freewallet.02/12/2019 — Loopring published a comprehensive 29-page Stablecoin Report with PwC. Full report here, synopsis here.02/14/2019 — Ethfinex listed LRC on their platform and organized the Loopring AMA on the Ethfinex Telegram.02/15/2019 — Loopring collaborates with Sydney-based blockchain community bitfwd to host workshops, build open source tools, and help advance decentralized solutions.02/15/2019 — Loopring co-hosts a DEX meetup in Sydney with HaymarketHQ and Next Genius Community to discuss all things DEX, and the Loopring landscape.02/15/2019 — Dolomite Bi-Weekly Update02/19/2019 — Loopring (LRC) is now on ZILLA Wallet. ZILLA makes it easy to get blockchain event tickets with LRC and manage crypto assets all in one App.02/22/2019 — The Loopring Long Term Incentive Program begins the allowed withdrawal phase.02/27/2019 — Loopring BD director, Matthew, is interviewed by Elastum, a gateway to enter the crypto market with fiat, and shares thoughts regarding Loopring’s past, present, and future.02/27/2019 — Loopring continues to work with Polymath to further peer-to-peer trading of security tokens on a decentralized exchange.Coming up this month, you can find Loopring around Hong Kong Blockchain Week, EthCC, ETHParis, and ETHUofT (University of Toronto). Reach out if you’re around! We will sponsor ETHUofT hackathon on March 8–10. Stay tuned for our imminent project request and prize!Kriptomat will host a live video AMA with Loopring’s Matthew Finestone on March 7th.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring Bi-Weekly Update — 03/02/2019 was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 03. 02

Loopring Bi-Weekly Update —...

Loopring Bi-Weekly Update — 03/02/2019After some time off for the Lunar New Year holiday, the Loopring team returned in full force in mid-February. Now we are back in action and ready to rock. A talented and experienced UI/UX designer has joined us last week. Our global community hosted a few meetups in Australia and North America. We’ve made great Protocol and Relay progress, had a few deep dive interviews, and Polymath successfully trialed peer-to-peer trading of security tokens over the Loopring protocol.Protocol 2.0The Protocol team has been working with the Relay team on integration testing in the past two weeks. We have completed testing for order parameters processing, encoding, and decoding, signing transactions, order matching, and event logs.Having previously implemented support for the ST20 token standard, Polymath’s implementation of the ERC1400 security token standard, we have now successfully completed test trades. Whitelisted addresses were able to settle trades over the Loopring protocol, while non-whitelisted addresses failed. Coindesk writeup here.RelayLightcone (Relay 2.0)We have completed most of the functionalities for Relay 2.0, so we have started reviewing those functionalities and workflows to ensure the quality and the stability of the system.Completed optimizations for wallet account management and updating order status.Implemented processing of Ethereum fork.Implemented web socket API, including monitoring pending trade.Completed logging, deployment and system monitoring.We have also written basic code for integration testing, preparing for more testings in the future.Finally, we are working on refactoring event logs, wallet account activities and others.Frontend & ProductiOS & AndroidWe have released version 1.6.2 and 1.6.3 of both iOS and Android apps. In Android development, we have fixed several bugs and re-launched app on Baidu App Store. In iOS development, we have updated the app enterprise certificates, allowing users to continue using the enterprise iOS app. In addition, we have updated the trade order form to be closer to the UI of centralized exchanges. It makes it easier for new users to learn how to use our apps. At the same time, we have started researching wallet backup methods on third-party cloud platforms. We have investigated Google Drive, iCloud, Dropbox and other cloud platforms. We believe this feature will simplify workflows and we will continue the development.We are happy to welcome a new designer to the team, Dennis Ge. Through our discussion, it’s clear he is super familiar with the main value proposition of our apps and many others in the space. We have been focusing on the core value of wallets, but also on the visual aesthetics and additional, interactive features. We have started designing an exciting new UI. In the next steps, we will present an initial plan, work with the team to make the new design goal and improve the products gradually. He will definitely make a significant contribution and impact on our products.Operations & Marketing02/06/2019 — LRC is listed on Freewallet.02/12/2019 — Loopring published a comprehensive 29-page Stablecoin Report with PwC. Full report here, synopsis here.02/14/2019 — Ethfinex listed LRC on their platform and organized the Loopring AMA on the Ethfinex Telegram.02/15/2019 — Loopring collaborates with Sydney-based blockchain community bitfwd to host workshops, build open source tools, and help advance decentralized solutions.02/15/2019 — Loopring co-hosts a DEX meetup in Sydney with HaymarketHQ and Next Genius Community to discuss all things DEX, and the Loopring landscape.02/15/2019 — Dolomite Bi-Weekly Update02/19/2019 — Loopring (LRC) is now on ZILLA Wallet. ZILLA makes it easy to get blockchain event tickets with LRC and manage crypto assets all in one App.02/22/2019 — The Loopring Long Term Incentive Program begins the allowed withdrawal phase.02/27/2019 — Loopring BD director, Matthew, is interviewed by Elastum, a gateway to enter the crypto market with fiat, and shares thoughts regarding Loopring’s past, present, and future.02/27/2019 — Loopring continues to work with Polymath to further peer-to-peer trading of security tokens on a decentralized exchange.Coming up this month, you can find Loopring around Hong Kong Blockchain Week, EthCC, ETHParis, and ETHUofT (University of Toronto). Reach out if you’re around! We will sponsor ETHUofT hackathon on March 8–10. Stay tuned for our imminent project request and prize!Kriptomat will host a live video AMA with Loopring’s Matthew Finestone on March 7th.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring Bi-Weekly Update — 03/02/2019 was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 03. 02

Loopring Sydney Meetup Recap

Loopring co-hosted a DEX meetup in Sydney with HaymarketHQ and NextGenius to discuss all things DEX, and the Loopring landscape.Haymarket HQ and Next Genius Community jointly held the Loopring meetup to discuss the current exchange landscape and decentralized solutions on the Loopring Protocol.The crowd consisted of blockchain developers, entrepreneurs, and crypto enthusiasts. Loopring CMO, Jay Zhou, shared with the community the open source protocol providing fundamental building block for crypto exchanges, which can be integrated into other blockchain applications that may need to manage multiple tokens.Jay presented that the three primary risks of centralized exchanges are: 1) Lack of security, 2) Lack of transparency, and 3) Lack of liquidity. Decentralized exchanges differ from centralized exchanges in part because users maintain control of their private-keys (assets) by performing trades directly on the underlying blockchain. By leveraging the trustless technology of cryptocurrencies themselves, they successfully mitigate risks of security and transparency. However, liquidity often remains an issue as users must search for counterparties across disparate liquidity pools and standards.Loopring uses a combination of off-chain order messaging and on-chain settlement to ensure users maintain custody of their tokens. Loopring is also working on their protocol-specific Ethereum side-chain for faster and cheaper settlement to power massive adoption of decentralized exchanges.About Haymarket HQHaymarket HQ is Australia’s first startup hub supporting entrepreneurs to connect to Asia. They offer access to co-working space, mentors and investors, and a huge network of like-minded entrepreneurs across Asia-Pacific. Their role is to raise awareness about the opportunities and developments in Asia and support entrepreneurs to capitalise on them.About Next Genius CommunityNext Genius Community is the largest Chinese programmers community based in Sydney, easy to share with other members the most advanced techniques, help each other. They can provide the maximum support for all start-ups. As a member, you can get inspiration from blockchain meetups and learn new technology such as smart contract development.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us at:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring Sydney Meetup Recap was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 02. 20

Loopring Sydney Meetup Recap

Loopring co-hosted a DEX meetup in Sydney with HaymarketHQ and NextGenius to discuss all things DEX, and the Loopring landscape.Haymarket HQ and Next Genius Community jointly held the Loopring meetup to discuss the current exchange landscape and decentralized solutions on the Loopring Protocol.The crowd consisted of blockchain developers, entrepreneurs, and crypto enthusiasts. Loopring CMO, Jay Zhou, shared with the community the open source protocol providing fundamental building block for crypto exchanges, which can be integrated into other blockchain applications that may need to manage multiple tokens.Jay presented that the three primary risks of centralized exchanges are: 1) Lack of security, 2) Lack of transparency, and 3) Lack of liquidity. Decentralized exchanges differ from centralized exchanges in part because users maintain control of their private-keys (assets) by performing trades directly on the underlying blockchain. By leveraging the trustless technology of cryptocurrencies themselves, they successfully mitigate risks of security and transparency. However, liquidity often remains an issue as users must search for counterparties across disparate liquidity pools and standards.Loopring uses a combination of off-chain order messaging and on-chain settlement to ensure users maintain custody of their tokens. Loopring is also working on their protocol-specific Ethereum side-chain for faster and cheaper settlement to power massive adoption of decentralized exchanges.About Haymarket HQHaymarket HQ is Australia’s first startup hub supporting entrepreneurs to connect to Asia. They offer access to co-working space, mentors and investors, and a huge network of like-minded entrepreneurs across Asia-Pacific. Their role is to raise awareness about the opportunities and developments in Asia and support entrepreneurs to capitalise on them.About Next Genius CommunityNext Genius Community is the largest Chinese programmers community based in Sydney, easy to share with other members the most advanced techniques, help each other. They can provide the maximum support for all start-ups. As a member, you can get inspiration from blockchain meetups and learn new technology such as smart contract development.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us at:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring Sydney Meetup Recap was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 02. 20

Loopring Sydney Meetup Recap

Loopring co-hosted a DEX meetup in Sydney with HaymarketHQ and NextGenius to discuss all things DEX, and the Loopring landscape.Haymarket HQ and Next Genius Community jointly held the Loopring meetup to discuss the current exchange landscape and decentralized solutions on the Loopring Protocol.The crowd consisted of blockchain developers, entrepreneurs, and crypto enthusiasts. Loopring CMO, Jay Zhou, shared with the community the open source protocol providing fundamental building block for crypto exchanges, which can be integrated into other blockchain applications that may need to manage multiple tokens.Jay presented that the three primary risks of centralized exchanges are: 1) Lack of security, 2) Lack of transparency, and 3) Lack of liquidity. Decentralized exchanges differ from centralized exchanges in part because users maintain control of their private-keys (assets) by performing trades directly on the underlying blockchain. By leveraging the trustless technology of cryptocurrencies themselves, they successfully mitigate risks of security and transparency. However, liquidity often remains an issue as users must search for counterparties across disparate liquidity pools and standards.Loopring uses a combination of off-chain order messaging and on-chain settlement to ensure users maintain custody of their tokens. Loopring is also working on their protocol-specific Ethereum side-chain for faster and cheaper settlement to power massive adoption of decentralized exchanges.About Haymarket HQHaymarket HQ is Australia’s first startup hub supporting entrepreneurs to connect to Asia. They offer access to co-working space, mentors and investors, and a huge network of like-minded entrepreneurs across Asia-Pacific. Their role is to raise awareness about the opportunities and developments in Asia and support entrepreneurs to capitalise on them.About Next Genius CommunityNext Genius Community is the largest Chinese programmers community based in Sydney, easy to share with other members the most advanced techniques, help each other. They can provide the maximum support for all start-ups. As a member, you can get inspiration from blockchain meetups and learn new technology such as smart contract development.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us at:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring Sydney Meetup Recap was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 02. 20

Loopring Sydney Meetup Recap

Loopring co-hosted a DEX meetup in Sydney with HaymarketHQ and NextGenius to discuss all things DEX, and the Loopring landscape.Haymarket HQ and Next Genius Community jointly held the Loopring meetup to discuss the current exchange landscape and decentralized solutions on the Loopring Protocol.The crowd consisted of blockchain developers, entrepreneurs, and crypto enthusiasts. Loopring CMO, Jay Zhou, shared with the community the open source protocol providing fundamental building block for crypto exchanges, which can be integrated into other blockchain applications that may need to manage multiple tokens.Jay presented that the three primary risks of centralized exchanges are: 1) Lack of security, 2) Lack of transparency, and 3) Lack of liquidity. Decentralized exchanges differ from centralized exchanges in part because users maintain control of their private-keys (assets) by performing trades directly on the underlying blockchain. By leveraging the trustless technology of cryptocurrencies themselves, they successfully mitigate risks of security and transparency. However, liquidity often remains an issue as users must search for counterparties across disparate liquidity pools and standards.Loopring uses a combination of off-chain order messaging and on-chain settlement to ensure users maintain custody of their tokens. Loopring is also working on their protocol-specific Ethereum side-chain for faster and cheaper settlement to power massive adoption of decentralized exchanges.About Haymarket HQHaymarket HQ is Australia’s first startup hub supporting entrepreneurs to connect to Asia. They offer access to co-working space, mentors and investors, and a huge network of like-minded entrepreneurs across Asia-Pacific. Their role is to raise awareness about the opportunities and developments in Asia and support entrepreneurs to capitalise on them.About Next Genius CommunityNext Genius Community is the largest Chinese programmers community based in Sydney, easy to share with other members the most advanced techniques, help each other. They can provide the maximum support for all start-ups. As a member, you can get inspiration from blockchain meetups and learn new technology such as smart contract development.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us at:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring Sydney Meetup Recap was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 02. 20

Ethfinex Telegram AMA with ...

We appreciate Ethfinex for listing LRC on their platform and organizing the Loopring AMA on the Ethfinex Telegram on Thursday, Feb 14th, 2019. This post sums up the questions and answers.1. An introduction would be great, perhaps we can kick things off with by telling us a bit about the Loopring genesis story; how you guys came to be and what key problems you are solving?Daniel: Alright, good idea. First of all, English is not my native language, forgive my typos please. I used to work for Google and in 2014 I founded a startup to offer centralized exchange service to help people to buy/sell BTC/LTC/XRP etc. The business didn’t go well so I closed it and joined an insurance company and secretly built a similar product, but still focusing on digital asset trading.The idea of Loopring came up to me while I’m with my previous employer, but I’m obsessed with it, so I quit and did an ICO. The ICO is very successfully but ended up refunding most ether raised (close to 100K) to participants due to the regulation in China. We decided to go with what left with us to continue the development though. The Loopring protocol adapts the idea of “managing, sharing, and matching orders off chain and settling trade on chain”, the on-chain part is the protocol, the off-chain part is the relayer, which is very similar to the 0x protocol.The differences from other trading protocol is the following, and I believe some of them are our advantages:Loopring protocol is order-based. I personal believe most of the values are generated by order-based trading because that’s what most people are used to.Loopring features “ring matching”. Each loopring’s order is modelled as <giving-out-X-tokenS-for-Y-tokenB>, or <X tokenS->Y tokenB> for short ,regardless whether the order is a sell or a buy. With such an unidirectional order modelling, we can enable <10 X->10Y> <10Y->10Z> and <10Z->10X> order to trade in one transaction. This cannot be done using other protocols and is a built in arbitrage mechanism.Loopring can prevent orders to be stolen by any middleman or Ethereum miners, which is what 0x is lack of and will be suffering.But the most existing thing about Loopring 2.0 is the fact that relayers can accept any token as the fee token, not LRC. When a relayer get 1000 GTO as fee, for example, 200 GTO will be “taxed” into a fee contract, and those 200 GTO and other tokens, will be auctioned off for LRC, those purchased LRC will be burned automatically. For GTO, the “burn rate” can be 10%, but if relayers accept LRC as fee, the rate is only 5 percentage. This guarantees LRC’s total supply will decrease over time.2. Hi Daniel, thanks for being here to answer questions today, much appreciated! I’ve been a holder of LRC but, aside from general market conditions, I feel underwhelmed by the growth of LRC. For a project that seems to tick a lot of boxes, the interest feels low. Do you have any plans to ham up your outreach efforts to try build some hype around it?Daniel: We are mostly engineers, actually only 4 people are not engineers. We want to focus on coding and delivering the protocol and a new relayer implementation, we don’t do a lot of marketing as of now. But this may change in the future — once we deployed the new relayer backend and get liquidity, we’ll do more promotions. The plan is to deploy the relayer in about 2 months. We are close to code complete but need to do a lot of testing internally.3. Hi Daniel! I’m interested in your liquidity strategy as your model seems to be dependent on having high volume. Are you engaging market makers?Daniel: We’ll open our relayer backend API for people to make marketing on our relayer. But you are right, given the current Ethereum throughput, it is hard to generate comparable trading volumes on DEX. We are also working on a new protocol upgrade, v3, to migrate some on-chain verification logic off-chain to reduce gas cost and can potentially settle about 100 trades per Ethereum TX. This is helpful for liquidity generation, but it has some other drawbacks we are trying to mitigate.4. I heard elsewhere that you are introducing a new token (LRX) resulting in two Loopring tokens. Whats the point of this? How will it work? And will it impact the price of LRC?Daniel: There are LRC (for Ethereum) and LRN (for NEO). NO more LRx Tokens. We are working with the Dora team to build a cross chain solution, on the up-coming DEX-chain, LRN will be used as the native coin, and people who hold LRN can transfer their LRN from NEO to the DEX-chain and even convert to WLRN on Ethereum. The DEX chain will host only DEX protocols and DApp. LRN will be used as the fee token and governance token. We’ll release more details regarding the DEX chain and LRN in Q2.5. Any limitations to the orders people can execute? Is it only limit orders or will there be functionality for market orders and possibly even margin?Daniel: Currently we still focus on limit price orders. The limited price order guarantees once traded, the price meets the owner’s expectation. But the issues is the order may never be filled; we have a new (a pretty innovative ) trading model to be released in about a month, witch guarantees the settlement but not price, similar to Dutch Auction.6. Have you considered communal pooled liquidity similar to Uniswap to bootstrap 1) a community 2) liquidity?Daniel: We did. But as I said, pooled liquidity mechanism is not the silver bullet, we believe that order-based trading will still prevail. Don’t take me wrong. I like Uniswap, but I cannot image a crypto-world without a well designed order-based trading protocol. Loopring wants to be the protocol.7. I am thinking more so adding on that feature along with ring matching. Both benefits can be had. DEX’s are plagued with liquidity issues. How is LRC fixing this? the LRC protocol is great in a world where there is at least $15m in total liquidity. How will it get to that point?Daniel: There is no easy fix for the lack of liquidity, even for CEX. What Loopring can help DEX is sharing of orders across multiple DEXs. This will certainly be helpful. For tokens of very small total supply, pooled liquidity may help, but don’t forget that a certainly amount of those tokens will be kept in a smart contract in order to make the pooled liquidity works, which is bad for the token as its supply is small already.Order-based protocols are best for tokens of larger supplies or market cap and a lot of holders. For smaller tokens, our new model, mentioned above, called “Oedax” will help.8. How about a Totle like approach. Creating a contract that aggregates Kyber, 0x, Uniswap orders INTO Loopring. Have LRC be the dex aggregator?Daniel: We don’t want to be an aggregator, we want to be one of those fundamentally important protocols.9. It makes sense to create a smart contract that pools ETH/ERC20’s. The liquidity pool can then be used to market make, the benefit for liquidity providers will be 20% of fees from trades using the liquidity pool. I don’t see how this isn’t a win win?Daniel: Those numbers above is for illustration purpose only, the actual burn rates are different. We also support WETH as fee as you can imagine. It depends on how the pool is implemented. Ideally it should not be just one pool, it should be many of them and anyone can create a new one or join an existing one.10. Loopring is a protocol that works well at scale, we both agree there. Where we disagree is that liquidity will just come into DEX’s. You must understand that this can take 5+ years. What is the strategy to get more liquidity — if there is one?Daniel: Or if it is the only one, decentralized governance should be applied. I don’t think I disagree. Getting liquidity to DEX is hard and it’s not going to happen over night.11. Will you stay on the Ethereum network or do you have plans to migrate to your own mainnet?Daniel: We focus on the protocol layer, which means we can move to other networks. But for the near term, we’ll stick to Ethereum as I see it as the best ecosystem for dApps. The DEX chain we mentioned is NOT a Loopring mainnet, we co-develop it with another team, we focus on protocol, they focus on cross-chain. There will never be a Loopring mainnet.BTW, I don’t think any existing DEX protocols are good enough for large scale adoption. Counting on the underlying blockchain to scale up is a bad idea. Here at Loopring, we are trying to scale the protocol using other means. We plan to go to Paris to attend a couple of Ethereum Dev Conference to show some of our work in March and April. So stay tuned.— Thanks for the questions everyone and to Ethfinex!To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Ethfinex Telegram AMA with Loopring’s Daniel Wang was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 02. 16

Ethfinex Telegram AMA with ...

We appreciate Ethfinex for listing LRC on their platform and organizing the Loopring AMA on the Ethfinex Telegram on Thursday, Feb 14th, 2019. This post sums up the questions and answers.1. An introduction would be great, perhaps we can kick things off with by telling us a bit about the Loopring genesis story; how you guys came to be and what key problems you are solving?Daniel: Alright, good idea. First of all, English is not my native language, forgive my typos please. I used to work for Google and in 2014 I founded a startup to offer centralized exchange service to help people to buy/sell BTC/LTC/XRP etc. The business didn’t go well so I closed it and joined an insurance company and secretly built a similar product, but still focusing on digital asset trading.The idea of Loopring came up to me while I’m with my previous employer, but I’m obsessed with it, so I quit and did an ICO. The ICO is very successfully but ended up refunding most ether raised (close to 100K) to participants due to the regulation in China. We decided to go with what left with us to continue the development though. The Loopring protocol adapts the idea of “managing, sharing, and matching orders off chain and settling trade on chain”, the on-chain part is the protocol, the off-chain part is the relayer, which is very similar to the 0x protocol.The differences from other trading protocol is the following, and I believe some of them are our advantages:Loopring protocol is order-based. I personal believe most of the values are generated by order-based trading because that’s what most people are used to.Loopring features “ring matching”. Each loopring’s order is modelled as <giving-out-X-tokenS-for-Y-tokenB>, or <X tokenS->Y tokenB> for short ,regardless whether the order is a sell or a buy. With such an unidirectional order modelling, we can enable <10 X->10Y> <10Y->10Z> and <10Z->10X> order to trade in one transaction. This cannot be done using other protocols and is a built in arbitrage mechanism.Loopring can prevent orders to be stolen by any middleman or Ethereum miners, which is what 0x is lack of and will be suffering.But the most existing thing about Loopring 2.0 is the fact that relayers can accept any token as the fee token, not LRC. When a relayer get 1000 GTO as fee, for example, 200 GTO will be “taxed” into a fee contract, and those 200 GTO and other tokens, will be auctioned off for LRC, those purchased LRC will be burned automatically. For GTO, the “burn rate” can be 10%, but if relayers accept LRC as fee, the rate is only 5 percentage. This guarantees LRC’s total supply will decrease over time.2. Hi Daniel, thanks for being here to answer questions today, much appreciated! I’ve been a holder of LRC but, aside from general market conditions, I feel underwhelmed by the growth of LRC. For a project that seems to tick a lot of boxes, the interest feels low. Do you have any plans to ham up your outreach efforts to try build some hype around it?Daniel: We are mostly engineers, actually only 4 people are not engineers. We want to focus on coding and delivering the protocol and a new relayer implementation, we don’t do a lot of marketing as of now. But this may change in the future — once we deployed the new relayer backend and get liquidity, we’ll do more promotions. The plan is to deploy the relayer in about 2 months. We are close to code complete but need to do a lot of testing internally.3. Hi Daniel! I’m interested in your liquidity strategy as your model seems to be dependent on having high volume. Are you engaging market makers?Daniel: We’ll open our relayer backend API for people to make marketing on our relayer. But you are right, given the current Ethereum throughput, it is hard to generate comparable trading volumes on DEX. We are also working on a new protocol upgrade, v3, to migrate some on-chain verification logic off-chain to reduce gas cost and can potentially settle about 100 trades per Ethereum TX. This is helpful for liquidity generation, but it has some other drawbacks we are trying to mitigate.4. I heard elsewhere that you are introducing a new token (LRX) resulting in two Loopring tokens. Whats the point of this? How will it work? And will it impact the price of LRC?Daniel: There are LRC (for Ethereum) and LRN (for NEO). NO more LRx Tokens. We are working with the Dora team to build a cross chain solution, on the up-coming DEX-chain, LRN will be used as the native coin, and people who hold LRN can transfer their LRN from NEO to the DEX-chain and even convert to WLRN on Ethereum. The DEX chain will host only DEX protocols and DApp. LRN will be used as the fee token and governance token. We’ll release more details regarding the DEX chain and LRN in Q2.5. Any limitations to the orders people can execute? Is it only limit orders or will there be functionality for market orders and possibly even margin?Daniel: Currently we still focus on limit price orders. The limited price order guarantees once traded, the price meets the owner’s expectation. But the issues is the order may never be filled; we have a new (a pretty innovative ) trading model to be released in about a month, witch guarantees the settlement but not price, similar to Dutch Auction.6. Have you considered communal pooled liquidity similar to Uniswap to bootstrap 1) a community 2) liquidity?Daniel: We did. But as I said, pooled liquidity mechanism is not the silver bullet, we believe that order-based trading will still prevail. Don’t take me wrong. I like Uniswap, but I cannot image a crypto-world without a well designed order-based trading protocol. Loopring wants to be the protocol.7. I am thinking more so adding on that feature along with ring matching. Both benefits can be had. DEX’s are plagued with liquidity issues. How is LRC fixing this? the LRC protocol is great in a world where there is at least $15m in total liquidity. How will it get to that point?Daniel: There is no easy fix for the lack of liquidity, even for CEX. What Loopring can help DEX is sharing of orders across multiple DEXs. This will certainly be helpful. For tokens of very small total supply, pooled liquidity may help, but don’t forget that a certainly amount of those tokens will be kept in a smart contract in order to make the pooled liquidity works, which is bad for the token as its supply is small already.Order-based protocols are best for tokens of larger supplies or market cap and a lot of holders. For smaller tokens, our new model, mentioned above, called “Oedax” will help.8. How about a Totle like approach. Creating a contract that aggregates Kyber, 0x, Uniswap orders INTO Loopring. Have LRC be the dex aggregator?Daniel: We don’t want to be an aggregator, we want to be one of those fundamentally important protocols.9. It makes sense to create a smart contract that pools ETH/ERC20’s. The liquidity pool can then be used to market make, the benefit for liquidity providers will be 20% of fees from trades using the liquidity pool. I don’t see how this isn’t a win win?Daniel: Those numbers above is for illustration purpose only, the actual burn rates are different. We also support WETH as fee as you can imagine. It depends on how the pool is implemented. Ideally it should not be just one pool, it should be many of them and anyone can create a new one or join an existing one.10. Loopring is a protocol that works well at scale, we both agree there. Where we disagree is that liquidity will just come into DEX’s. You must understand that this can take 5+ years. What is the strategy to get more liquidity — if there is one?Daniel: Or if it is the only one, decentralized governance should be applied. I don’t think I disagree. Getting liquidity to DEX is hard and it’s not going to happen over night.11. Will you stay on the Ethereum network or do you have plans to migrate to your own mainnet?Daniel: We focus on the protocol layer, which means we can move to other networks. But for the near term, we’ll stick to Ethereum as I see it as the best ecosystem for dApps. The DEX chain we mentioned is NOT a Loopring mainnet, we co-develop it with another team, we focus on protocol, they focus on cross-chain. There will never be a Loopring mainnet.BTW, I don’t think any existing DEX protocols are good enough for large scale adoption. Counting on the underlying blockchain to scale up is a bad idea. Here at Loopring, we are trying to scale the protocol using other means. We plan to go to Paris to attend a couple of Ethereum Dev Conference to show some of our work in March and April. So stay tuned.— Thanks for the questions everyone and to Ethfinex!To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Ethfinex Telegram AMA with Loopring’s Daniel Wang was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 02. 16

Ethfinex Telegram AMA with ...

We appreciate Ethfinex for listing LRC on their platform and organizing the Loopring AMA on the Ethfinex Telegram on Thursday, Feb 14th, 2019. This post sums up the questions and answers.1. An introduction would be great, perhaps we can kick things off with by telling us a bit about the Loopring genesis story; how you guys came to be and what key problems you are solving?Daniel: Alright, good idea. First of all, English is not my native language, forgive my typos please. I used to work for Google and in 2014 I founded a startup to offer centralized exchange service to help people to buy/sell BTC/LTC/XRP etc. The business didn’t go well so I closed it and joined an insurance company and secretly built a similar product, but still focusing on digital asset trading.The idea of Loopring came up to me while I’m with my previous employer, but I’m obsessed with it, so I quit and did an ICO. The ICO is very successfully but ended up refunding most ether raised (close to 100K) to participants due to the regulation in China. We decided to go with what left with us to continue the development though. The Loopring protocol adapts the idea of “managing, sharing, and matching orders off chain and settling trade on chain”, the on-chain part is the protocol, the off-chain part is the relayer, which is very similar to the 0x protocol.The differences from other trading protocol is the following, and I believe some of them are our advantages:Loopring protocol is order-based. I personal believe most of the values are generated by order-based trading because that’s what most people are used to.Loopring features “ring matching”. Each loopring’s order is modelled as <giving-out-X-tokenS-for-Y-tokenB>, or <X tokenS->Y tokenB> for short ,regardless whether the order is a sell or a buy. With such an unidirectional order modelling, we can enable <10 X->10Y> <10Y->10Z> and <10Z->10X> order to trade in one transaction. This cannot be done using other protocols and is a built in arbitrage mechanism.Loopring can prevent orders to be stolen by any middleman or Ethereum miners, which is what 0x is lack of and will be suffering.But the most existing thing about Loopring 2.0 is the fact that relayers can accept any token as the fee token, not LRC. When a relayer get 1000 GTO as fee, for example, 200 GTO will be “taxed” into a fee contract, and those 200 GTO and other tokens, will be auctioned off for LRC, those purchased LRC will be burned automatically. For GTO, the “burn rate” can be 10%, but if relayers accept LRC as fee, the rate is only 5 percentage. This guarantees LRC’s total supply will decrease over time.2. Hi Daniel, thanks for being here to answer questions today, much appreciated! I’ve been a holder of LRC but, aside from general market conditions, I feel underwhelmed by the growth of LRC. For a project that seems to tick a lot of boxes, the interest feels low. Do you have any plans to ham up your outreach efforts to try build some hype around it?Daniel: We are mostly engineers, actually only 4 people are not engineers. We want to focus on coding and delivering the protocol and a new relayer implementation, we don’t do a lot of marketing as of now. But this may change in the future — once we deployed the new relayer backend and get liquidity, we’ll do more promotions. The plan is to deploy the relayer in about 2 months. We are close to code complete but need to do a lot of testing internally.3. Hi Daniel! I’m interested in your liquidity strategy as your model seems to be dependent on having high volume. Are you engaging market makers?Daniel: We’ll open our relayer backend API for people to make marketing on our relayer. But you are right, given the current Ethereum throughput, it is hard to generate comparable trading volumes on DEX. We are also working on a new protocol upgrade, v3, to migrate some on-chain verification logic off-chain to reduce gas cost and can potentially settle about 100 trades per Ethereum TX. This is helpful for liquidity generation, but it has some other drawbacks we are trying to mitigate.4. I heard elsewhere that you are introducing a new token (LRX) resulting in two Loopring tokens. Whats the point of this? How will it work? And will it impact the price of LRC?Daniel: There are LRC (for Ethereum) and LRN (for NEO). NO more LRx Tokens. We are working with the Dora team to build a cross chain solution, on the up-coming DEX-chain, LRN will be used as the native coin, and people who hold LRN can transfer their LRN from NEO to the DEX-chain and even convert to WLRN on Ethereum. The DEX chain will host only DEX protocols and DApp. LRN will be used as the fee token and governance token. We’ll release more details regarding the DEX chain and LRN in Q2.5. Any limitations to the orders people can execute? Is it only limit orders or will there be functionality for market orders and possibly even margin?Daniel: Currently we still focus on limit price orders. The limited price order guarantees once traded, the price meets the owner’s expectation. But the issues is the order may never be filled; we have a new (a pretty innovative ) trading model to be released in about a month, witch guarantees the settlement but not price, similar to Dutch Auction.6. Have you considered communal pooled liquidity similar to Uniswap to bootstrap 1) a community 2) liquidity?Daniel: We did. But as I said, pooled liquidity mechanism is not the silver bullet, we believe that order-based trading will still prevail. Don’t take me wrong. I like Uniswap, but I cannot image a crypto-world without a well designed order-based trading protocol. Loopring wants to be the protocol.7. I am thinking more so adding on that feature along with ring matching. Both benefits can be had. DEX’s are plagued with liquidity issues. How is LRC fixing this? the LRC protocol is great in a world where there is at least $15m in total liquidity. How will it get to that point?Daniel: There is no easy fix for the lack of liquidity, even for CEX. What Loopring can help DEX is sharing of orders across multiple DEXs. This will certainly be helpful. For tokens of very small total supply, pooled liquidity may help, but don’t forget that a certainly amount of those tokens will be kept in a smart contract in order to make the pooled liquidity works, which is bad for the token as its supply is small already.Order-based protocols are best for tokens of larger supplies or market cap and a lot of holders. For smaller tokens, our new model, mentioned above, called “Oedax” will help.8. How about a Totle like approach. Creating a contract that aggregates Kyber, 0x, Uniswap orders INTO Loopring. Have LRC be the dex aggregator?Daniel: We don’t want to be an aggregator, we want to be one of those fundamentally important protocols.9. It makes sense to create a smart contract that pools ETH/ERC20’s. The liquidity pool can then be used to market make, the benefit for liquidity providers will be 20% of fees from trades using the liquidity pool. I don’t see how this isn’t a win win?Daniel: Those numbers above is for illustration purpose only, the actual burn rates are different. We also support WETH as fee as you can imagine. It depends on how the pool is implemented. Ideally it should not be just one pool, it should be many of them and anyone can create a new one or join an existing one.10. Loopring is a protocol that works well at scale, we both agree there. Where we disagree is that liquidity will just come into DEX’s. You must understand that this can take 5+ years. What is the strategy to get more liquidity — if there is one?Daniel: Or if it is the only one, decentralized governance should be applied. I don’t think I disagree. Getting liquidity to DEX is hard and it’s not going to happen over night.11. Will you stay on the Ethereum network or do you have plans to migrate to your own mainnet?Daniel: We focus on the protocol layer, which means we can move to other networks. But for the near term, we’ll stick to Ethereum as I see it as the best ecosystem for dApps. The DEX chain we mentioned is NOT a Loopring mainnet, we co-develop it with another team, we focus on protocol, they focus on cross-chain. There will never be a Loopring mainnet.BTW, I don’t think any existing DEX protocols are good enough for large scale adoption. Counting on the underlying blockchain to scale up is a bad idea. Here at Loopring, we are trying to scale the protocol using other means. We plan to go to Paris to attend a couple of Ethereum Dev Conference to show some of our work in March and April. So stay tuned.— Thanks for the questions everyone and to Ethfinex!To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Ethfinex Telegram AMA with Loopring’s Daniel Wang was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 02. 16

Ethfinex Telegram AMA with ...

We appreciate Ethfinex for listing LRC on their platform and organizing the Loopring AMA on the Ethfinex Telegram on Thursday, Feb 14th, 2019. This post sums up the questions and answers.1. An introduction would be great, perhaps we can kick things off with by telling us a bit about the Loopring genesis story; how you guys came to be and what key problems you are solving?Daniel: Alright, good idea. First of all, English is not my native language, forgive my typos please. I used to work for Google and in 2014 I founded a startup to offer centralized exchange service to help people to buy/sell BTC/LTC/XRP etc. The business didn’t go well so I closed it and joined an insurance company and secretly built a similar product, but still focusing on digital asset trading.The idea of Loopring came up to me while I’m with my previous employer, but I’m obsessed with it, so I quit and did an ICO. The ICO is very successfully but ended up refunding most ether raised (close to 100K) to participants due to the regulation in China. We decided to go with what left with us to continue the development though. The Loopring protocol adapts the idea of “managing, sharing, and matching orders off chain and settling trade on chain”, the on-chain part is the protocol, the off-chain part is the relayer, which is very similar to the 0x protocol.The differences from other trading protocol is the following, and I believe some of them are our advantages:Loopring protocol is order-based. I personal believe most of the values are generated by order-based trading because that’s what most people are used to.Loopring features “ring matching”. Each loopring’s order is modelled as <giving-out-X-tokenS-for-Y-tokenB>, or <X tokenS->Y tokenB> for short ,regardless whether the order is a sell or a buy. With such an unidirectional order modelling, we can enable <10 X->10Y> <10Y->10Z> and <10Z->10X> order to trade in one transaction. This cannot be done using other protocols and is a built in arbitrage mechanism.Loopring can prevent orders to be stolen by any middleman or Ethereum miners, which is what 0x is lack of and will be suffering.But the most existing thing about Loopring 2.0 is the fact that relayers can accept any token as the fee token, not LRC. When a relayer get 1000 GTO as fee, for example, 200 GTO will be “taxed” into a fee contract, and those 200 GTO and other tokens, will be auctioned off for LRC, those purchased LRC will be burned automatically. For GTO, the “burn rate” can be 10%, but if relayers accept LRC as fee, the rate is only 5 percentage. This guarantees LRC’s total supply will decrease over time.2. Hi Daniel, thanks for being here to answer questions today, much appreciated! I’ve been a holder of LRC but, aside from general market conditions, I feel underwhelmed by the growth of LRC. For a project that seems to tick a lot of boxes, the interest feels low. Do you have any plans to ham up your outreach efforts to try build some hype around it?Daniel: We are mostly engineers, actually only 4 people are not engineers. We want to focus on coding and delivering the protocol and a new relayer implementation, we don’t do a lot of marketing as of now. But this may change in the future — once we deployed the new relayer backend and get liquidity, we’ll do more promotions. The plan is to deploy the relayer in about 2 months. We are close to code complete but need to do a lot of testing internally.3. Hi Daniel! I’m interested in your liquidity strategy as your model seems to be dependent on having high volume. Are you engaging market makers?Daniel: We’ll open our relayer backend API for people to make marketing on our relayer. But you are right, given the current Ethereum throughput, it is hard to generate comparable trading volumes on DEX. We are also working on a new protocol upgrade, v3, to migrate some on-chain verification logic off-chain to reduce gas cost and can potentially settle about 100 trades per Ethereum TX. This is helpful for liquidity generation, but it has some other drawbacks we are trying to mitigate.4. I heard elsewhere that you are introducing a new token (LRX) resulting in two Loopring tokens. Whats the point of this? How will it work? And will it impact the price of LRC?Daniel: There are LRC (for Ethereum) and LRN (for NEO). NO more LRx Tokens. We are working with the Dora team to build a cross chain solution, on the up-coming DEX-chain, LRN will be used as the native coin, and people who hold LRN can transfer their LRN from NEO to the DEX-chain and even convert to WLRN on Ethereum. The DEX chain will host only DEX protocols and DApp. LRN will be used as the fee token and governance token. We’ll release more details regarding the DEX chain and LRN in Q2.5. Any limitations to the orders people can execute? Is it only limit orders or will there be functionality for market orders and possibly even margin?Daniel: Currently we still focus on limit price orders. The limited price order guarantees once traded, the price meets the owner’s expectation. But the issues is the order may never be filled; we have a new (a pretty innovative ) trading model to be released in about a month, witch guarantees the settlement but not price, similar to Dutch Auction.6. Have you considered communal pooled liquidity similar to Uniswap to bootstrap 1) a community 2) liquidity?Daniel: We did. But as I said, pooled liquidity mechanism is not the silver bullet, we believe that order-based trading will still prevail. Don’t take me wrong. I like Uniswap, but I cannot image a crypto-world without a well designed order-based trading protocol. Loopring wants to be the protocol.7. I am thinking more so adding on that feature along with ring matching. Both benefits can be had. DEX’s are plagued with liquidity issues. How is LRC fixing this? the LRC protocol is great in a world where there is at least $15m in total liquidity. How will it get to that point?Daniel: There is no easy fix for the lack of liquidity, even for CEX. What Loopring can help DEX is sharing of orders across multiple DEXs. This will certainly be helpful. For tokens of very small total supply, pooled liquidity may help, but don’t forget that a certainly amount of those tokens will be kept in a smart contract in order to make the pooled liquidity works, which is bad for the token as its supply is small already.Order-based protocols are best for tokens of larger supplies or market cap and a lot of holders. For smaller tokens, our new model, mentioned above, called “Oedax” will help.8. How about a Totle like approach. Creating a contract that aggregates Kyber, 0x, Uniswap orders INTO Loopring. Have LRC be the dex aggregator?Daniel: We don’t want to be an aggregator, we want to be one of those fundamentally important protocols.9. It makes sense to create a smart contract that pools ETH/ERC20’s. The liquidity pool can then be used to market make, the benefit for liquidity providers will be 20% of fees from trades using the liquidity pool. I don’t see how this isn’t a win win?Daniel: Those numbers above is for illustration purpose only, the actual burn rates are different. We also support WETH as fee as you can imagine. It depends on how the pool is implemented. Ideally it should not be just one pool, it should be many of them and anyone can create a new one or join an existing one.10. Loopring is a protocol that works well at scale, we both agree there. Where we disagree is that liquidity will just come into DEX’s. You must understand that this can take 5+ years. What is the strategy to get more liquidity — if there is one?Daniel: Or if it is the only one, decentralized governance should be applied. I don’t think I disagree. Getting liquidity to DEX is hard and it’s not going to happen over night.11. Will you stay on the Ethereum network or do you have plans to migrate to your own mainnet?Daniel: We focus on the protocol layer, which means we can move to other networks. But for the near term, we’ll stick to Ethereum as I see it as the best ecosystem for dApps. The DEX chain we mentioned is NOT a Loopring mainnet, we co-develop it with another team, we focus on protocol, they focus on cross-chain. There will never be a Loopring mainnet.BTW, I don’t think any existing DEX protocols are good enough for large scale adoption. Counting on the underlying blockchain to scale up is a bad idea. Here at Loopring, we are trying to scale the protocol using other means. We plan to go to Paris to attend a couple of Ethereum Dev Conference to show some of our work in March and April. So stay tuned.— Thanks for the questions everyone and to Ethfinex!To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Ethfinex Telegram AMA with Loopring’s Daniel Wang was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 02. 16

Loopring Announced New Part...

Loopring Collaboration with Bitfwd CommunityLoopring collaborates with Sydney-based blockchain community bitfwd to host workshops, build open source tools, and help advance decentralized solutions.Loopring has established a joint research initiative with bitfwd community in Sydney, powered by Founders 10x Accelerator. Founders 10x Accelerator is tailored for high-potential University of New South Wales startups who want to strengthen their entrepreneurship skills and accelerate their ventures to be investor-ready.The initiative is tasked with building open source, free, products to support the blockchain community. Loopring looks forward to bringing decentralized trading experiences and expanding its DEX ecosystem to Australia.Daniel Bar, chairman and co-founder of bitfwd commented:“Australia has managed to create a very favourable environment for companies operating within the blockchain and broader fintech ecosystem. Loopring recently visited Australia and has developed strong relations with Bitfwd and some top Australian universities. We look forward to expanding our operations to Australia with the Loopring team.”About bitfwdbitfwd is a grassroots community of cypherpunks, blockchain developers, entrepreneurs, and crypto enthusiasts. We bring together resources, content and educational activities. They organize blockathons, but they also run workshops, developer sessions, publish content, and contribute open source codebase through community initiatives. They currently have a network of blockchain developers communities that is spread between Australia, New Zealand, Singapore, and China.@Founders 10x accelerator UNSWPlease reach out to jay@loopring.org for more information. Thank you!To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring Announced New Partnership with Bitfwd ! was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 02. 14

Loopring Announced New Part...

Loopring Collaboration with Bitfwd CommunityLoopring collaborates with Sydney-based blockchain community bitfwd to host workshops, build open source tools, and help advance decentralized solutions.Loopring has established a joint research initiative with bitfwd community in Sydney, powered by Founders 10x Accelerator. Founders 10x Accelerator is tailored for high-potential University of New South Wales startups who want to strengthen their entrepreneurship skills and accelerate their ventures to be investor-ready.The initiative is tasked with building open source, free, products to support the blockchain community. Loopring looks forward to bringing decentralized trading experiences and expanding its DEX ecosystem to Australia.Daniel Bar, chairman and co-founder of bitfwd commented:“Australia has managed to create a very favourable environment for companies operating within the blockchain and broader fintech ecosystem. Loopring recently visited Australia and has developed strong relations with Bitfwd and some top Australian universities. We look forward to expanding our operations to Australia with the Loopring team.”About bitfwdbitfwd is a grassroots community of cypherpunks, blockchain developers, entrepreneurs, and crypto enthusiasts. We bring together resources, content and educational activities. They organize blockathons, but they also run workshops, developer sessions, publish content, and contribute open source codebase through community initiatives. They currently have a network of blockchain developers communities that is spread between Australia, New Zealand, Singapore, and China.@Founders 10x accelerator UNSWPlease reach out to jay@loopring.org for more information. Thank you!To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring Announced New Partnership with Bitfwd ! was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 02. 14

Loopring Announced New Part...

Loopring Collaboration with Bitfwd CommunityLoopring collaborates with Sydney-based blockchain community bitfwd to host workshops, build open source tools, and help advance decentralized solutions.Loopring has established a joint research initiative with bitfwd community in Sydney, powered by Founders 10x Accelerator. Founders 10x Accelerator is tailored for high-potential University of New South Wales startups who want to strengthen their entrepreneurship skills and accelerate their ventures to be investor-ready.The initiative is tasked with building open source, free, products to support the blockchain community. Loopring looks forward to bringing decentralized trading experiences and expanding its DEX ecosystem to Australia.Daniel Bar, chairman and co-founder of bitfwd commented:“Australia has managed to create a very favourable environment for companies operating within the blockchain and broader fintech ecosystem. Loopring recently visited Australia and has developed strong relations with Bitfwd and some top Australian universities. We look forward to expanding our operations to Australia with the Loopring team.”About bitfwdbitfwd is a grassroots community of cypherpunks, blockchain developers, entrepreneurs, and crypto enthusiasts. We bring together resources, content and educational activities. They organize blockathons, but they also run workshops, developer sessions, publish content, and contribute open source codebase through community initiatives. They currently have a network of blockchain developers communities that is spread between Australia, New Zealand, Singapore, and China.@Founders 10x accelerator UNSWPlease reach out to jay@loopring.org for more information. Thank you!To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring Announced New Partnership with Bitfwd ! was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 02. 14

Loopring Announced New Part...

Loopring Collaboration with Bitfwd CommunityLoopring collaborates with Sydney-based blockchain community bitfwd to host workshops, build open source tools, and help advance decentralized solutions.Loopring has established a joint research initiative with bitfwd community in Sydney, powered by Founders 10x Accelerator. Founders 10x Accelerator is tailored for high-potential University of New South Wales startups who want to strengthen their entrepreneurship skills and accelerate their ventures to be investor-ready.The initiative is tasked with building open source, free, products to support the blockchain community. Loopring looks forward to bringing decentralized trading experiences and expanding its DEX ecosystem to Australia.Daniel Bar, chairman and co-founder of bitfwd commented:“Australia has managed to create a very favourable environment for companies operating within the blockchain and broader fintech ecosystem. Loopring recently visited Australia and has developed strong relations with Bitfwd and some top Australian universities. We look forward to expanding our operations to Australia with the Loopring team.”About bitfwdbitfwd is a grassroots community of cypherpunks, blockchain developers, entrepreneurs, and crypto enthusiasts. We bring together resources, content and educational activities. They organize blockathons, but they also run workshops, developer sessions, publish content, and contribute open source codebase through community initiatives. They currently have a network of blockchain developers communities that is spread between Australia, New Zealand, Singapore, and China.@Founders 10x accelerator UNSWPlease reach out to jay@loopring.org for more information. Thank you!To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring Announced New Partnership with Bitfwd ! was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 02. 14

PwC & Loopring: Stablecoin ...

Emergence of Stable Value Coins and A Trust Framework For Fiat-Backed VersionsA few months ago, the Loopring Foundation and PwC China began working together to explore some of the greatest opportunities and challenges facing the blockchain and cryptocurrency ecosystem, as well as traditional corporations who are navigating its effects on their industries.Our first order of business was to dig deep on the topic of stablecoins — one of the most active areas of 2018, and potentially 2019.We are pleased to release this comprehensive 29 page report which should provide a most thorough overview of the matter, with a particular focus on use cases, usage, and the regulatory considerations facing compliant fiat-backed models. We also present a ‘Trust Framework’ for fiat-backed coins.You can read or download the full report here: https://loopring.org/resources/pwc-loopring-stablecoin-paper.pdfBottom Left: Our ‘Trust Framework’ for fiatcoinsFor something that is designed to be stable (and to some, ‘boring’), it is truly a broad and exciting topic. We’ve seen so many themes occur even in the past few months: from a flood of regulated fiatcoins challenging Tether’s dominance (albeit slowly), to MakerDAO’s DAI becoming so foundational to Ethereum’s decentralized financial movement with seemingly nothing able to escape its gravitational pull (now holding 2% of all ETH in CDPs), to Basis shutting down and the algorithmic model remaining ever so elusive — stablecoins are surprisingly riveting!Left: As at end of December 2018It is our view that stablecoins are complementary to ‘normal’ (non- pegged) cryptocurrencies, at least — or especially — in the short to medium term. With reduced volatility, much of the latent demand and use cases have the opportunity to engage with a new tokenised economy, and see firsthand the benefits afforded.In the long term, normal cryptocurrencies — specifically the ‘payment’ variety such as BTC — seek to become an alternate monetary asset in parallel — or in lieu of — fiat currencies. For that goal, pegging price to fiat currency, or any value index, would defeat the purpose. To reach that reality, however — where new forms of money may proliferate — price-stable cryptocurrencies may represent the single best hope, bridge and educational tool.Moving forward, we’ll monitor how these themes continue to play out, how crypto and traditional businesses may use them as strategic tools, and how the stablecoin may very well be the first mass adopted blockchain ‘product’.We’ll end with the paper’s conclusion, which provides a bit of insight into how we have come to view this part of the ecosystem following our research.The currencies we care about are the ones we see all around us — the ones that denominate our lives. Our affinity for any currency depends on its relative stability to however we buy, earn, and save. This, in turn, is derived from our peers, nation, and society at large feeling similarly confident and comfortable in the same.Currency is the quantifier of our wealth and its purchasing power, and, crucially, rests on the reasonable expectation that tomorrow will not be too different than today. Failing to satisfy this credible commitment to straightforwardness simply precludes people from making rational decisions and long-term investment.In some sense, stable currencies are the equivalent of a commonly spoken language; compulsory for coordination and cooperation.What should be clear is that no matter the mechanism, confidence is the key ingredient in maintaining stability. The underlying means are of course important, but from a theoretical perspective, everyone’s belief that a stablecoin should be worth 1 USD — and their subsequent willingness to buy/sell/convert for 1 USD — is a sufficiently self- perpetuating phenomenon to keep it stable. In fact, confidence is what keeps fiat currencies ‘stable’ in the first place: confidence in monetary policy, or at least confidence in the credible commitment to pursue the policy that a central bank has signalled.For fiatcoins, the confidence is most basically a testament that there is limited counterparty risk from the issuer (or the issuer’s banks). For the on-chain and algorithmic methods, it is mostly a testament to faith in the smart contracts and to users’ rationality and self-interest.No matter the mechanism, it’s exceedingly important for these issuers or developers to take their roles and stablecoins seriously; these assets may hold users’ savings, not an allocation to long-shot speculation. Failure — be it fiduciary, legal, technical — could have catastrophic repercussions for token holders and the cryptoasset industry at large.To some, there is a sentiment of saturation in the stablecoin market. It’s fair to question the point of another coin worth USD$1 or HK$1. However, we believe there are useful reasons for why more can be expected, and why that’s a good thing.Chief among them is that more coins likely means reaching more people. Issuers have idiosyncrasies in pegs, geographies, platforms, compliance and marketing. Any onboarding of users into a blockchain-based world is unambiguously good for the ecosystem, especially considering the comprehension barrier. It may also mean reaching the people who need it most.The market will also likely see many more fiatcoins in particular, for the simple reason that it makes business- sense for their issuers. Given that fiatcoins have zero or negligible fees for creation/redemption, the real value it provides issuers is the ability to aggregate users, amass data, and feed them into an ecosystem of ancillary products/services such as wallets, exchanges, etc. Just like in Web2.0, aggregation theory, for better or worse, may still be a winning strategy[94]. With this in mind, we may see a different sort of centralised issuer in 2019; already pervasively popular platforms, such as Facebook or Amazon[95].Secondly — pertaining only to the decentralised varieties — given its difficulty, a trustless stablecoin has near mythical meaning. Designing decentralised price-stable cryptocurrencies are hard problems, and there is no reason to believe that we will get it right the first or fiftieth time; the likelihood of any solution’s mid-to-long term success is probabilistically low[96].Finally, the greatest argument for more stablecoins is the same argument for more of anything related to building on blockchains: experimentation, especially with new forms of money. The unknown unknowns are plentiful, but the design space is much more fertile with stable units of value.https://loopring.org/resources/pwc-loopring-stablecoin-paper.pdfbody[data-twttr-rendered="true"] {background-color: transparent;}.twitter-tweet {margin: auto !important;}We present you: Emergence of Stable Value Coins and A Trust Framework For Fiat-Backed Versions - a joint study by @PwC_China and @loopringorg. You can download the paper now https://t.co/Qdi4snVHcA #PwC #Loopring #stablecoin $LRC — @loopringorgfunction notifyResize(height) {height = height ? height : document.documentElement.offsetHeight; var resized = false; if (window.donkey && donkey.resize) {donkey.resize(height); resized = true;}if (parent && parent._resizeIframe) {var obj = {iframe: window.frameElement, height: height}; parent._resizeIframe(obj); resized = true;}if (window.location && window.location.hash === "#amp=1" && window.parent && window.parent.postMessage) {window.parent.postMessage({sentinel: "amp", type: "embed-size", height: height}, "*");}if (window.webkit && window.webkit.messageHandlers && window.webkit.messageHandlers.resize) {window.webkit.messageHandlers.resize.postMessage(height); resized = true;}return resized;}twttr.events.bind('rendered', function (event) {notifyResize();}); twttr.events.bind('resize', function (event) {notifyResize();});if (parent && parent._resizeIframe) {var maxWidth = parseInt(window.frameElement.getAttribute("width")); if ( 500 < maxWidth) {window.frameElement.setAttribute("width", "500");}}We welcome and appreciate all feedback; please reach out to any of us on the Loopring or PwC China teams. Contact info can be seen above. Thank you.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)PwC & Loopring: Stablecoin Report was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 02. 13

PwC & Loopring: Stablecoin ...

Emergence of Stable Value Coins and A Trust Framework For Fiat-Backed VersionsA few months ago, the Loopring Foundation and PwC China began working together to explore some of the greatest opportunities and challenges facing the blockchain and cryptocurrency ecosystem, as well as traditional corporations who are navigating its effects on their industries.Our first order of business was to dig deep on the topic of stablecoins — one of the most active areas of 2018, and potentially 2019.We are pleased to release this comprehensive 29 page report which should provide a most thorough overview of the matter, with a particular focus on use cases, usage, and the regulatory considerations facing compliant fiat-backed models. We also present a ‘Trust Framework’ for fiat-backed coins.You can read or download the full report here: https://loopring.org/resources/pwc-loopring-stablecoin-paper.pdfBottom Left: Our ‘Trust Framework’ for fiatcoinsFor something that is designed to be stable (and to some, ‘boring’), it is truly a broad and exciting topic. We’ve seen so many themes occur even in the past few months: from a flood of regulated fiatcoins challenging Tether’s dominance (albeit slowly), to MakerDAO’s DAI becoming so foundational to Ethereum’s decentralized financial movement with seemingly nothing able to escape its gravitational pull (now holding 2% of all ETH in CDPs), to Basis shutting down and the algorithmic model remaining ever so elusive — stablecoins are surprisingly riveting!Left: As at end of December 2018It is our view that stablecoins are complementary to ‘normal’ (non- pegged) cryptocurrencies, at least — or especially — in the short to medium term. With reduced volatility, much of the latent demand and use cases have the opportunity to engage with a new tokenised economy, and see firsthand the benefits afforded.In the long term, normal cryptocurrencies — specifically the ‘payment’ variety such as BTC — seek to become an alternate monetary asset in parallel — or in lieu of — fiat currencies. For that goal, pegging price to fiat currency, or any value index, would defeat the purpose. To reach that reality, however — where new forms of money may proliferate — price-stable cryptocurrencies may represent the single best hope, bridge and educational tool.Moving forward, we’ll monitor how these themes continue to play out, how crypto and traditional businesses may use them as strategic tools, and how the stablecoin may very well be the first mass adopted blockchain ‘product’.We’ll end with the paper’s conclusion, which provides a bit of insight into how we have come to view this part of the ecosystem following our research.The currencies we care about are the ones we see all around us — the ones that denominate our lives. Our affinity for any currency depends on its relative stability to however we buy, earn, and save. This, in turn, is derived from our peers, nation, and society at large feeling similarly confident and comfortable in the same.Currency is the quantifier of our wealth and its purchasing power, and, crucially, rests on the reasonable expectation that tomorrow will not be too different than today. Failing to satisfy this credible commitment to straightforwardness simply precludes people from making rational decisions and long-term investment.In some sense, stable currencies are the equivalent of a commonly spoken language; compulsory for coordination and cooperation.What should be clear is that no matter the mechanism, confidence is the key ingredient in maintaining stability. The underlying means are of course important, but from a theoretical perspective, everyone’s belief that a stablecoin should be worth 1 USD — and their subsequent willingness to buy/sell/convert for 1 USD — is a sufficiently self- perpetuating phenomenon to keep it stable. In fact, confidence is what keeps fiat currencies ‘stable’ in the first place: confidence in monetary policy, or at least confidence in the credible commitment to pursue the policy that a central bank has signalled.For fiatcoins, the confidence is most basically a testament that there is limited counterparty risk from the issuer (or the issuer’s banks). For the on-chain and algorithmic methods, it is mostly a testament to faith in the smart contracts and to users’ rationality and self-interest.No matter the mechanism, it’s exceedingly important for these issuers or developers to take their roles and stablecoins seriously; these assets may hold users’ savings, not an allocation to long-shot speculation. Failure — be it fiduciary, legal, technical — could have catastrophic repercussions for token holders and the cryptoasset industry at large.To some, there is a sentiment of saturation in the stablecoin market. It’s fair to question the point of another coin worth USD$1 or HK$1. However, we believe there are useful reasons for why more can be expected, and why that’s a good thing.Chief among them is that more coins likely means reaching more people. Issuers have idiosyncrasies in pegs, geographies, platforms, compliance and marketing. Any onboarding of users into a blockchain-based world is unambiguously good for the ecosystem, especially considering the comprehension barrier. It may also mean reaching the people who need it most.The market will also likely see many more fiatcoins in particular, for the simple reason that it makes business- sense for their issuers. Given that fiatcoins have zero or negligible fees for creation/redemption, the real value it provides issuers is the ability to aggregate users, amass data, and feed them into an ecosystem of ancillary products/services such as wallets, exchanges, etc. Just like in Web2.0, aggregation theory, for better or worse, may still be a winning strategy[94]. With this in mind, we may see a different sort of centralised issuer in 2019; already pervasively popular platforms, such as Facebook or Amazon[95].Secondly — pertaining only to the decentralised varieties — given its difficulty, a trustless stablecoin has near mythical meaning. Designing decentralised price-stable cryptocurrencies are hard problems, and there is no reason to believe that we will get it right the first or fiftieth time; the likelihood of any solution’s mid-to-long term success is probabilistically low[96].Finally, the greatest argument for more stablecoins is the same argument for more of anything related to building on blockchains: experimentation, especially with new forms of money. The unknown unknowns are plentiful, but the design space is much more fertile with stable units of value.https://loopring.org/resources/pwc-loopring-stablecoin-paper.pdfbody[data-twttr-rendered="true"] {background-color: transparent;}.twitter-tweet {margin: auto !important;}We present you: Emergence of Stable Value Coins and A Trust Framework For Fiat-Backed Versions - a joint study by @PwC_China and @loopringorg. You can download the paper now https://t.co/Qdi4snVHcA #PwC #Loopring #stablecoin $LRC — @loopringorgfunction notifyResize(height) {height = height ? height : document.documentElement.offsetHeight; var resized = false; if (window.donkey && donkey.resize) {donkey.resize(height); resized = true;}if (parent && parent._resizeIframe) {var obj = {iframe: window.frameElement, height: height}; parent._resizeIframe(obj); resized = true;}if (window.location && window.location.hash === "#amp=1" && window.parent && window.parent.postMessage) {window.parent.postMessage({sentinel: "amp", type: "embed-size", height: height}, "*");}if (window.webkit && window.webkit.messageHandlers && window.webkit.messageHandlers.resize) {window.webkit.messageHandlers.resize.postMessage(height); resized = true;}return resized;}twttr.events.bind('rendered', function (event) {notifyResize();}); twttr.events.bind('resize', function (event) {notifyResize();});if (parent && parent._resizeIframe) {var maxWidth = parseInt(window.frameElement.getAttribute("width")); if ( 500 < maxWidth) {window.frameElement.setAttribute("width", "500");}}We welcome and appreciate all feedback; please reach out to any of us on the Loopring or PwC China teams. Contact info can be seen above. Thank you.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)PwC & Loopring: Stablecoin Report was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 02. 13

PwC & Loopring: Stablecoin ...

Emergence of Stable Value Coins and A Trust Framework For Fiat-Backed VersionsA few months ago, the Loopring Foundation and PwC China began working together to explore some of the greatest opportunities and challenges facing the blockchain and cryptocurrency ecosystem, as well as traditional corporations who are navigating its effects on their industries.Our first order of business was to dig deep on the topic of stablecoins — one of the most active areas of 2018, and potentially 2019.We are pleased to release this comprehensive 29 page report which should provide a most thorough overview of the matter, with a particular focus on use cases, usage, and the regulatory considerations facing compliant fiat-backed models. We also present a ‘Trust Framework’ for fiat-backed coins.You can read or download the full report here: https://loopring.org/resources/pwc-loopring-stablecoin-paper.pdfBottom Left: Our ‘Trust Framework’ for fiatcoinsFor something that is designed to be stable (and to some, ‘boring’), it is truly a broad and exciting topic. We’ve seen so many themes occur even in the past few months: from a flood of regulated fiatcoins challenging Tether’s dominance (albeit slowly), to MakerDAO’s DAI becoming so foundational to Ethereum’s decentralized financial movement with seemingly nothing able to escape its gravitational pull (now holding 2% of all ETH in CDPs), to Basis shutting down and the algorithmic model remaining ever so elusive — stablecoins are surprisingly riveting!Left: As at end of December 2018It is our view that stablecoins are complementary to ‘normal’ (non- pegged) cryptocurrencies, at least — or especially — in the short to medium term. With reduced volatility, much of the latent demand and use cases have the opportunity to engage with a new tokenised economy, and see firsthand the benefits afforded.In the long term, normal cryptocurrencies — specifically the ‘payment’ variety such as BTC — seek to become an alternate monetary asset in parallel — or in lieu of — fiat currencies. For that goal, pegging price to fiat currency, or any value index, would defeat the purpose. To reach that reality, however — where new forms of money may proliferate — price-stable cryptocurrencies may represent the single best hope, bridge and educational tool.Moving forward, we’ll monitor how these themes continue to play out, how crypto and traditional businesses may use them as strategic tools, and how the stablecoin may very well be the first mass adopted blockchain ‘product’.We’ll end with the paper’s conclusion, which provides a bit of insight into how we have come to view this part of the ecosystem following our research.The currencies we care about are the ones we see all around us — the ones that denominate our lives. Our affinity for any currency depends on its relative stability to however we buy, earn, and save. This, in turn, is derived from our peers, nation, and society at large feeling similarly confident and comfortable in the same.Currency is the quantifier of our wealth and its purchasing power, and, crucially, rests on the reasonable expectation that tomorrow will not be too different than today. Failing to satisfy this credible commitment to straightforwardness simply precludes people from making rational decisions and long-term investment.In some sense, stable currencies are the equivalent of a commonly spoken language; compulsory for coordination and cooperation.What should be clear is that no matter the mechanism, confidence is the key ingredient in maintaining stability. The underlying means are of course important, but from a theoretical perspective, everyone’s belief that a stablecoin should be worth 1 USD — and their subsequent willingness to buy/sell/convert for 1 USD — is a sufficiently self- perpetuating phenomenon to keep it stable. In fact, confidence is what keeps fiat currencies ‘stable’ in the first place: confidence in monetary policy, or at least confidence in the credible commitment to pursue the policy that a central bank has signalled.For fiatcoins, the confidence is most basically a testament that there is limited counterparty risk from the issuer (or the issuer’s banks). For the on-chain and algorithmic methods, it is mostly a testament to faith in the smart contracts and to users’ rationality and self-interest.No matter the mechanism, it’s exceedingly important for these issuers or developers to take their roles and stablecoins seriously; these assets may hold users’ savings, not an allocation to long-shot speculation. Failure — be it fiduciary, legal, technical — could have catastrophic repercussions for token holders and the cryptoasset industry at large.To some, there is a sentiment of saturation in the stablecoin market. It’s fair to question the point of another coin worth USD$1 or HK$1. However, we believe there are useful reasons for why more can be expected, and why that’s a good thing.Chief among them is that more coins likely means reaching more people. Issuers have idiosyncrasies in pegs, geographies, platforms, compliance and marketing. Any onboarding of users into a blockchain-based world is unambiguously good for the ecosystem, especially considering the comprehension barrier. It may also mean reaching the people who need it most.The market will also likely see many more fiatcoins in particular, for the simple reason that it makes business- sense for their issuers. Given that fiatcoins have zero or negligible fees for creation/redemption, the real value it provides issuers is the ability to aggregate users, amass data, and feed them into an ecosystem of ancillary products/services such as wallets, exchanges, etc. Just like in Web2.0, aggregation theory, for better or worse, may still be a winning strategy[94]. With this in mind, we may see a different sort of centralised issuer in 2019; already pervasively popular platforms, such as Facebook or Amazon[95].Secondly — pertaining only to the decentralised varieties — given its difficulty, a trustless stablecoin has near mythical meaning. Designing decentralised price-stable cryptocurrencies are hard problems, and there is no reason to believe that we will get it right the first or fiftieth time; the likelihood of any solution’s mid-to-long term success is probabilistically low[96].Finally, the greatest argument for more stablecoins is the same argument for more of anything related to building on blockchains: experimentation, especially with new forms of money. The unknown unknowns are plentiful, but the design space is much more fertile with stable units of value.https://loopring.org/resources/pwc-loopring-stablecoin-paper.pdfbody[data-twttr-rendered="true"] {background-color: transparent;}.twitter-tweet {margin: auto !important;}We present you: Emergence of Stable Value Coins and A Trust Framework For Fiat-Backed Versions - a joint study by @PwC_China and @loopringorg. You can download the paper now https://t.co/Qdi4snVHcA #PwC #Loopring #stablecoin $LRC — @loopringorgfunction notifyResize(height) {height = height ? height : document.documentElement.offsetHeight; var resized = false; if (window.donkey && donkey.resize) {donkey.resize(height); resized = true;}if (parent && parent._resizeIframe) {var obj = {iframe: window.frameElement, height: height}; parent._resizeIframe(obj); resized = true;}if (window.location && window.location.hash === "#amp=1" && window.parent && window.parent.postMessage) {window.parent.postMessage({sentinel: "amp", type: "embed-size", height: height}, "*");}if (window.webkit && window.webkit.messageHandlers && window.webkit.messageHandlers.resize) {window.webkit.messageHandlers.resize.postMessage(height); resized = true;}return resized;}twttr.events.bind('rendered', function (event) {notifyResize();}); twttr.events.bind('resize', function (event) {notifyResize();});if (parent && parent._resizeIframe) {var maxWidth = parseInt(window.frameElement.getAttribute("width")); if ( 500 < maxWidth) {window.frameElement.setAttribute("width", "500");}}We welcome and appreciate all feedback; please reach out to any of us on the Loopring or PwC China teams. Contact info can be seen above. Thank you.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)PwC & Loopring: Stablecoin Report was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 02. 13

PwC & Loopring: Stablecoin ...

Emergence of Stable Value Coins and A Trust Framework For Fiat-Backed VersionsA few months ago, the Loopring Foundation and PwC China began working together to explore some of the greatest opportunities and challenges facing the blockchain and cryptocurrency ecosystem, as well as traditional corporations who are navigating its effects on their industries.Our first order of business was to dig deep on the topic of stablecoins — one of the most active areas of 2018, and potentially 2019.We are pleased to release this comprehensive 29 page report which should provide a most thorough overview of the matter, with a particular focus on use cases, usage, and the regulatory considerations facing compliant fiat-backed models. We also present a ‘Trust Framework’ for fiat-backed coins.You can read or download the full report here: https://loopring.org/resources/pwc-loopring-stablecoin-paper.pdfBottom Left: Our ‘Trust Framework’ for fiatcoinsFor something that is designed to be stable (and to some, ‘boring’), it is truly a broad and exciting topic. We’ve seen so many themes occur even in the past few months: from a flood of regulated fiatcoins challenging Tether’s dominance (albeit slowly), to MakerDAO’s DAI becoming so foundational to Ethereum’s decentralized financial movement with seemingly nothing able to escape its gravitational pull (now holding 2% of all ETH in CDPs), to Basis shutting down and the algorithmic model remaining ever so elusive — stablecoins are surprisingly riveting!Left: As at end of December 2018It is our view that stablecoins are complementary to ‘normal’ (non- pegged) cryptocurrencies, at least — or especially — in the short to medium term. With reduced volatility, much of the latent demand and use cases have the opportunity to engage with a new tokenised economy, and see firsthand the benefits afforded.In the long term, normal cryptocurrencies — specifically the ‘payment’ variety such as BTC — seek to become an alternate monetary asset in parallel — or in lieu of — fiat currencies. For that goal, pegging price to fiat currency, or any value index, would defeat the purpose. To reach that reality, however — where new forms of money may proliferate — price-stable cryptocurrencies may represent the single best hope, bridge and educational tool.Moving forward, we’ll monitor how these themes continue to play out, how crypto and traditional businesses may use them as strategic tools, and how the stablecoin may very well be the first mass adopted blockchain ‘product’.We’ll end with the paper’s conclusion, which provides a bit of insight into how we have come to view this part of the ecosystem following our research.The currencies we care about are the ones we see all around us — the ones that denominate our lives. Our affinity for any currency depends on its relative stability to however we buy, earn, and save. This, in turn, is derived from our peers, nation, and society at large feeling similarly confident and comfortable in the same.Currency is the quantifier of our wealth and its purchasing power, and, crucially, rests on the reasonable expectation that tomorrow will not be too different than today. Failing to satisfy this credible commitment to straightforwardness simply precludes people from making rational decisions and long-term investment.In some sense, stable currencies are the equivalent of a commonly spoken language; compulsory for coordination and cooperation.What should be clear is that no matter the mechanism, confidence is the key ingredient in maintaining stability. The underlying means are of course important, but from a theoretical perspective, everyone’s belief that a stablecoin should be worth 1 USD — and their subsequent willingness to buy/sell/convert for 1 USD — is a sufficiently self- perpetuating phenomenon to keep it stable. In fact, confidence is what keeps fiat currencies ‘stable’ in the first place: confidence in monetary policy, or at least confidence in the credible commitment to pursue the policy that a central bank has signalled.For fiatcoins, the confidence is most basically a testament that there is limited counterparty risk from the issuer (or the issuer’s banks). For the on-chain and algorithmic methods, it is mostly a testament to faith in the smart contracts and to users’ rationality and self-interest.No matter the mechanism, it’s exceedingly important for these issuers or developers to take their roles and stablecoins seriously; these assets may hold users’ savings, not an allocation to long-shot speculation. Failure — be it fiduciary, legal, technical — could have catastrophic repercussions for token holders and the cryptoasset industry at large.To some, there is a sentiment of saturation in the stablecoin market. It’s fair to question the point of another coin worth USD$1 or HK$1. However, we believe there are useful reasons for why more can be expected, and why that’s a good thing.Chief among them is that more coins likely means reaching more people. Issuers have idiosyncrasies in pegs, geographies, platforms, compliance and marketing. Any onboarding of users into a blockchain-based world is unambiguously good for the ecosystem, especially considering the comprehension barrier. It may also mean reaching the people who need it most.The market will also likely see many more fiatcoins in particular, for the simple reason that it makes business- sense for their issuers. Given that fiatcoins have zero or negligible fees for creation/redemption, the real value it provides issuers is the ability to aggregate users, amass data, and feed them into an ecosystem of ancillary products/services such as wallets, exchanges, etc. Just like in Web2.0, aggregation theory, for better or worse, may still be a winning strategy[94]. With this in mind, we may see a different sort of centralised issuer in 2019; already pervasively popular platforms, such as Facebook or Amazon[95].Secondly — pertaining only to the decentralised varieties — given its difficulty, a trustless stablecoin has near mythical meaning. Designing decentralised price-stable cryptocurrencies are hard problems, and there is no reason to believe that we will get it right the first or fiftieth time; the likelihood of any solution’s mid-to-long term success is probabilistically low[96].Finally, the greatest argument for more stablecoins is the same argument for more of anything related to building on blockchains: experimentation, especially with new forms of money. The unknown unknowns are plentiful, but the design space is much more fertile with stable units of value.https://loopring.org/resources/pwc-loopring-stablecoin-paper.pdfbody[data-twttr-rendered="true"] {background-color: transparent;}.twitter-tweet {margin: auto !important;}We present you: Emergence of Stable Value Coins and A Trust Framework For Fiat-Backed Versions - a joint study by @PwC_China and @loopringorg. You can download the paper now https://t.co/Qdi4snVHcA #PwC #Loopring #stablecoin $LRC — @loopringorgfunction notifyResize(height) {height = height ? height : document.documentElement.offsetHeight; var resized = false; if (window.donkey && donkey.resize) {donkey.resize(height); resized = true;}if (parent && parent._resizeIframe) {var obj = {iframe: window.frameElement, height: height}; parent._resizeIframe(obj); resized = true;}if (window.location && window.location.hash === "#amp=1" && window.parent && window.parent.postMessage) {window.parent.postMessage({sentinel: "amp", type: "embed-size", height: height}, "*");}if (window.webkit && window.webkit.messageHandlers && window.webkit.messageHandlers.resize) {window.webkit.messageHandlers.resize.postMessage(height); resized = true;}return resized;}twttr.events.bind('rendered', function (event) {notifyResize();}); twttr.events.bind('resize', function (event) {notifyResize();});if (parent && parent._resizeIframe) {var maxWidth = parseInt(window.frameElement.getAttribute("width")); if ( 500 < maxWidth) {window.frameElement.setAttribute("width", "500");}}We welcome and appreciate all feedback; please reach out to any of us on the Loopring or PwC China teams. Contact info can be seen above. Thank you.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)PwC & Loopring: Stablecoin Report was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 02. 13

Loopring Bi-Weekly Update —...

Loopring Bi-Weekly Update — 02/02/2019Due to the Chinese New Year holidays, our next bi-weekly update will be released on March 3rd. Happy and healthy holidays to all celebrating!Protocol 2.0In Protocol development, we have implemented, deployed and tested the ST20 security token standard, that of Polymath, on Ethereum mainnet. It’s a relatively simple version of a security token, and a precursor to the ERC1400 standard which we have also implemented support for.Besides that, we have continued working with the Dora team on order matching on our application-specific sidechain and integration tests.We have also further specified Protocol 3.0, and begun development. We will share more information with the community on this as soon as possible. It has us extremely excited!RelayLightcone (Relay 2.0)During the last two weeks, we have continued optimizations for Relay 2.0. We have implemented line charts, customized token, trade history, order cancellation and so on. To improve the system stability, we are going to review all functionalities and workflows. We have completed review for order submission and order recovery. In addition, we have implemented test environment deployment, logging, monitoring and alerts. We have written API documents for new API endpoints. We believe that we are going to launch the Relay in production environment very soon.Frontend & ProductiOS & AndroidUP Wallet has released version 1.6.1 and 1.6.2, which focuses on optimizations for the cryptocurrency news feed section. You can now read cryptocurrency news by tokens now. At the same time, we have improved UI and updated icons in many pages. We have fixed bugs in the DEX component in the Android app, improving the app stability. Check out iOS and Android.Operations & Marketing01/19/2019 — LRC is available to trade with zero maker fees on Ethfinex, a full-featured hybrid Ethereum exchange platform.01/22/2019 — Bithumb re-opens LRC deposit and withdrawal, great news for Loopring Korean Community.01/22/2019 — LRC is available on the eo.finance wallet. Send, receive and store LRC on their mobile, web, or browser extension wallet.01/25/2019 — LRC is available for direct euro swapping at Elastum, a simple, non-order book exchange portal.01/26/2019 — Loopring Protocol founder, Daniel Wang, hosts a Reddit AMA to answer the community’s questions.01/28/2019 — Loopring CMO Jay was invited by Ernst & Young to join a EYTech Blockchain learn and share workshop with Microsoft Startups.01/28/2019 — Loopring publishes “Update on Loopring’s Long-Term Incentive Program”, describing how to maximize earnings in the lock-up period and how to withdraw LRC tokens.01/28/2019 — Loopring CMO, Jay Zhou, and Crypto Koala hosts a video AMA to discuss the Loopring project.01/29/2019 — Loopring BD director, Matthew, attended an Ethereum Meetup in Montreal where Louis Cleroux, CEO of Timechain, showed progress on their mobile wallet, including Loopring integration.Louis of Timechain showing Loopring mobile native DEX integration01/30/2019 — Loopring COO Johnston is interviewed by Jinse Finance, a Chinese media outlet, and shares thoughts regarding the trends of technology development.01/30/2019 — WBTC is officially live on Ethereum. Loopring is excited to be in the DAO, works amongst strong peers, and help advance the DeFi ecosystem.02/01/2019 — Adam and Corey, co-founders of Loopring-based DEX, Dolomite, go on the Daily Exchange talk show to talk about Dolomite, the state of DEXs, and the Loopring Protocol. Dolomite then announces the release of their Slate Market API. Check it out!https://medium.com/media/adfa9c510bb5a713e75cd5bab106e168/hrefLoopring CEO and founder, Daniel Wang, has made a Chinese New Year greeting video to the Loopring community. Click to watch.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring Bi-Weekly Update — 02/02/2019 was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 02. 02

Loopring Bi-Weekly Update —...

Loopring Bi-Weekly Update — 02/02/2019Due to the Chinese New Year holidays, our next bi-weekly update will be released on March 3rd. Happy and healthy holidays to all celebrating!Protocol 2.0In Protocol development, we have implemented, deployed and tested the ST20 security token standard, that of Polymath, on Ethereum mainnet. It’s a relatively simple version of a security token, and a precursor to the ERC1400 standard which we have also implemented support for.Besides that, we have continued working with the Dora team on order matching on our application-specific sidechain and integration tests.We have also further specified Protocol 3.0, and begun development. We will share more information with the community on this as soon as possible. It has us extremely excited!RelayLightcone (Relay 2.0)During the last two weeks, we have continued optimizations for Relay 2.0. We have implemented line charts, customized token, trade history, order cancellation and so on. To improve the system stability, we are going to review all functionalities and workflows. We have completed review for order submission and order recovery. In addition, we have implemented test environment deployment, logging, monitoring and alerts. We have written API documents for new API endpoints. We believe that we are going to launch the Relay in production environment very soon.Frontend & ProductiOS & AndroidUP Wallet has released version 1.6.1 and 1.6.2, which focuses on optimizations for the cryptocurrency news feed section. You can now read cryptocurrency news by tokens now. At the same time, we have improved UI and updated icons in many pages. We have fixed bugs in the DEX component in the Android app, improving the app stability. Check out iOS and Android.Operations & Marketing01/19/2019 — LRC is available to trade with zero maker fees on Ethfinex, a full-featured hybrid Ethereum exchange platform.01/22/2019 — Bithumb re-opens LRC deposit and withdrawal, great news for Loopring Korean Community.01/22/2019 — LRC is available on the eo.finance wallet. Send, receive and store LRC on their mobile, web, or browser extension wallet.01/25/2019 — LRC is available for direct euro swapping at Elastum, a simple, non-order book exchange portal.01/26/2019 — Loopring Protocol founder, Daniel Wang, hosts a Reddit AMA to answer the community’s questions.01/28/2019 — Loopring CMO Jay was invited by Ernst & Young to join a EYTech Blockchain learn and share workshop with Microsoft Startups.01/28/2019 — Loopring publishes “Update on Loopring’s Long-Term Incentive Program”, describing how to maximize earnings in the lock-up period and how to withdraw LRC tokens.01/28/2019 — Loopring CMO, Jay Zhou, and Crypto Koala hosts a video AMA to discuss the Loopring project.01/29/2019 — Loopring BD director, Matthew, attended an Ethereum Meetup in Montreal where Louis Cleroux, CEO of Timechain, showed progress on their mobile wallet, including Loopring integration.Louis of Timechain showing Loopring mobile native DEX integration01/30/2019 — Loopring COO Johnston is interviewed by Jinse Finance, a Chinese media outlet, and shares thoughts regarding the trends of technology development.01/30/2019 — WBTC is officially live on Ethereum. Loopring is excited to be in the DAO, works amongst strong peers, and help advance the DeFi ecosystem.02/01/2019 — Adam and Corey, co-founders of Loopring-based DEX, Dolomite, go on the Daily Exchange talk show to talk about Dolomite, the state of DEXs, and the Loopring Protocol. Dolomite then announces the release of their Slate Market API. Check it out!https://medium.com/media/adfa9c510bb5a713e75cd5bab106e168/hrefLoopring CEO and founder, Daniel Wang, has made a Chinese New Year greeting video to the Loopring community. Click to watch.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring Bi-Weekly Update — 02/02/2019 was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 02. 02

Loopring Bi-Weekly Update —...

Loopring Bi-Weekly Update — 02/02/2019Due to the Chinese New Year holidays, our next bi-weekly update will be released on March 3rd. Happy and healthy holidays to all celebrating!Protocol 2.0In Protocol development, we have implemented, deployed and tested the ST20 security token standard, that of Polymath, on Ethereum mainnet. It’s a relatively simple version of a security token, and a precursor to the ERC1400 standard which we have also implemented support for.Besides that, we have continued working with the Dora team on order matching on our application-specific sidechain and integration tests.We have also further specified Protocol 3.0, and begun development. We will share more information with the community on this as soon as possible. It has us extremely excited!RelayLightcone (Relay 2.0)During the last two weeks, we have continued optimizations for Relay 2.0. We have implemented line charts, customized token, trade history, order cancellation and so on. To improve the system stability, we are going to review all functionalities and workflows. We have completed review for order submission and order recovery. In addition, we have implemented test environment deployment, logging, monitoring and alerts. We have written API documents for new API endpoints. We believe that we are going to launch the Relay in production environment very soon.Frontend & ProductiOS & AndroidUP Wallet has released version 1.6.1 and 1.6.2, which focuses on optimizations for the cryptocurrency news feed section. You can now read cryptocurrency news by tokens now. At the same time, we have improved UI and updated icons in many pages. We have fixed bugs in the DEX component in the Android app, improving the app stability. Check out iOS and Android.Operations & Marketing01/19/2019 — LRC is available to trade with zero maker fees on Ethfinex, a full-featured hybrid Ethereum exchange platform.01/22/2019 — Bithumb re-opens LRC deposit and withdrawal, great news for Loopring Korean Community.01/22/2019 — LRC is available on the eo.finance wallet. Send, receive and store LRC on their mobile, web, or browser extension wallet.01/25/2019 — LRC is available for direct euro swapping at Elastum, a simple, non-order book exchange portal.01/26/2019 — Loopring Protocol founder, Daniel Wang, hosts a Reddit AMA to answer the community’s questions.01/28/2019 — Loopring CMO Jay was invited by Ernst & Young to join a EYTech Blockchain learn and share workshop with Microsoft Startups.01/28/2019 — Loopring publishes “Update on Loopring’s Long-Term Incentive Program”, describing how to maximize earnings in the lock-up period and how to withdraw LRC tokens.01/28/2019 — Loopring CMO, Jay Zhou, and Crypto Koala hosts a video AMA to discuss the Loopring project.01/29/2019 — Loopring BD director, Matthew, attended an Ethereum Meetup in Montreal where Louis Cleroux, CEO of Timechain, showed progress on their mobile wallet, including Loopring integration.Louis of Timechain showing Loopring mobile native DEX integration01/30/2019 — Loopring COO Johnston is interviewed by Jinse Finance, a Chinese media outlet, and shares thoughts regarding the trends of technology development.01/30/2019 — WBTC is officially live on Ethereum. Loopring is excited to be in the DAO, works amongst strong peers, and help advance the DeFi ecosystem.02/01/2019 — Adam and Corey, co-founders of Loopring-based DEX, Dolomite, go on the Daily Exchange talk show to talk about Dolomite, the state of DEXs, and the Loopring Protocol. Dolomite then announces the release of their Slate Market API. Check it out!https://medium.com/media/adfa9c510bb5a713e75cd5bab106e168/hrefLoopring CEO and founder, Daniel Wang, has made a Chinese New Year greeting video to the Loopring community. Click to watch.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring Bi-Weekly Update — 02/02/2019 was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 02. 02

On Loopring’s Long-Term Inc...

Update on Loopring’s Long-Term Incentive ProgramFollowing our token generation event on August 30, 2017, Loopring Foundation kicked off a ‘long-term incentive program’ to motivate long-term supporters in our community. This was implemented at the following smart contract: https://etherscan.io/address/longterm.lrctoken.eth. The initial post describing the program launch can be found here.The program allowed LRC token holders to deposit their LRC tokens into an open-source Ethereum smart contract, with the tokens being locked for 18 months after participation. The participation period lasted for 2 months. The first participant will be able to withdraw his/her tokens on February 22, 2019. This post will describe how to maximize earnings in the lock-up period and how to withdraw LRC tokens.Rate of returnParticipants can claim a total of 50,177,628 LRC in rewards from Loopring’s long-term incentive program: 50 million LRC having been offered by the Loopring Foundation and 177,628 LRC contributed by the community. Investors initially locked up a total of 65,144,894 LRC tokens, meaning there is a total of 115,322,522 LRC in the contract, with an average rate of return of 177%.It’s worth noting that the actual rate of return for any participant will depend on the timing of their withdrawal. The earlier you withdraw LRC tokens, the lower the rate of return you will receive; the later you withdraw the tokens, the higher the rate of return.For example, suppose that participants withdraw LRC in increments of 10,000, the rate of return of the first 10 and the last 10 are as follows:ROI per 10,000 LRC withdrawalsIt can be seen that the last person to withdraw 10,000 LRC will receive over 850% rate of return. If investors withdraw LRC tokens in units of 1000, the comparison of the rate of return of the first 10 and the last 10 will be more noticeable, and the last person will receive a rate of return of ~20x.ROI per 1,000 LRC withdrawalsROI distribution per 10,000 LRC withdrawalsThus, if you withdraw LRC tokens later, the rate of return will be much higher. If investors choose to withdraw tokens when there is a remaining 10,890,000 LRC in the contract, the user’s rate of return will be greater than the average rate of return of 177%.Participants have access to https://etherscan.io/address/longterm.lrctoken.eth#readContract, and at any time you can use the input box (depicted below) to view the actual rate of return you would receive when withdrawing the specific amount of LRC at that moment in time. For example, currently, you can receive 2,346.73 LRC reward (extra) when withdrawing 5,678 LRC. [Note: You must add 18 zeros to the end of the number of tokens when inputting the value.]Query your actual returnHow to withdraw?To withdraw the full amount of LRC tokens you deposited, simply send “0” ETH to longterm.lrctoken.eth (or the smart contract address 0x239dE3a0D6ca5f21601f83327eA2174225eB7156).Upon completing the transaction, the program will send your wallet address the original deposited tokens + any additional tokens earned through interest.You must send the transaction from your wallet address that initially entered the program.Note: We recommend that you use a Gas Limit of at least “90000” to ensure your transaction will be processed successfully. You must have some Ether in your wallet to pay for the Gas fee or your transfer will not be processed.Partial Token WithdrawalIf you want to withdraw a partial amount of tokens, such as “N” LRC, you will need to send a calculated amount of Ether to the smart contract address. Specifically, you will need to send N/10,000,000ETH to the smart contract address.To calculate the amount of Ether required for a partial withdrawal, use the formula below:ExampleIf you originally deposited 1,000,000 tokens into the long-term program, but only wanted to withdraw 100,000 of them after 18 months, you would calculate [100,000/10,000,000 = .01] and send .01 ETH to the smart contract.The program will send your wallet address .01 ETH + 100,000 LRC + any additional LRC earned through interest.A piece of advice:In general: withdraw only when you want to sell LRC immediately.Otherwise, you can withdraw tokens later than others and you will receive a higher rate of return.If you only want to sell a partial amount, then choose to withdraw a partial amount of tokens from the contract, and continue to earn on the rest.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)On Loopring’s Long-Term Incentive Program was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 01. 29

On Loopring’s Long-Term Inc...

Update on Loopring’s Long-Term Incentive ProgramFollowing our token generation event on August 30, 2017, Loopring Foundation kicked off a ‘long-term incentive program’ to motivate long-term supporters in our community. This was implemented at the following smart contract: https://etherscan.io/address/longterm.lrctoken.eth. The initial post describing the program launch can be found here.The program allowed LRC token holders to deposit their LRC tokens into an open-source Ethereum smart contract, with the tokens being locked for 18 months after participation. The participation period lasted for 2 months. The first participant will be able to withdraw his/her tokens on February 22, 2019. This post will describe how to maximize earnings in the lock-up period and how to withdraw LRC tokens.Rate of returnParticipants can claim a total of 50,177,628 LRC in rewards from Loopring’s long-term incentive program: 50 million LRC having been offered by the Loopring Foundation and 177,628 LRC contributed by the community. Investors initially locked up a total of 65,144,894 LRC tokens, meaning there is a total of 115,322,522 LRC in the contract, with an average rate of return of 177%.It’s worth noting that the actual rate of return for any participant will depend on the timing of their withdrawal. The earlier you withdraw LRC tokens, the lower the rate of return you will receive; the later you withdraw the tokens, the higher the rate of return.For example, suppose that participants withdraw LRC in increments of 10,000, the rate of return of the first 10 and the last 10 are as follows:ROI per 10,000 LRC withdrawalsIt can be seen that the last person to withdraw 10,000 LRC will receive over 850% rate of return. If investors withdraw LRC tokens in units of 1000, the comparison of the rate of return of the first 10 and the last 10 will be more noticeable, and the last person will receive a rate of return of ~20x.ROI per 1,000 LRC withdrawalsROI distribution per 10,000 LRC withdrawalsThus, if you withdraw LRC tokens later, the rate of return will be much higher. If investors choose to withdraw tokens when there is a remaining 10,890,000 LRC in the contract, the user’s rate of return will be greater than the average rate of return of 177%.Participants have access to https://etherscan.io/address/longterm.lrctoken.eth#readContract, and at any time you can use the input box (depicted below) to view the actual rate of return you would receive when withdrawing the specific amount of LRC at that moment in time. For example, currently, you can receive 2,346.73 LRC reward (extra) when withdrawing 5,678 LRC. [Note: You must add 18 zeros to the end of the number of tokens when inputting the value.]Query your actual returnHow to withdraw?To withdraw the full amount of LRC tokens you deposited, simply send “0” ETH to longterm.lrctoken.eth (or the smart contract address 0x239dE3a0D6ca5f21601f83327eA2174225eB7156).Upon completing the transaction, the program will send your wallet address the original deposited tokens + any additional tokens earned through interest.You must send the transaction from your wallet address that initially entered the program.Note: We recommend that you use a Gas Limit of at least “90000” to ensure your transaction will be processed successfully. You must have some Ether in your wallet to pay for the Gas fee or your transfer will not be processed.Partial Token WithdrawalIf you want to withdraw a partial amount of tokens, such as “N” LRC, you will need to send a calculated amount of Ether to the smart contract address. Specifically, you will need to send N/10,000,000ETH to the smart contract address.To calculate the amount of Ether required for a partial withdrawal, use the formula below:ExampleIf you originally deposited 1,000,000 tokens into the long-term program, but only wanted to withdraw 100,000 of them after 18 months, you would calculate [100,000/10,000,000 = .01] and send .01 ETH to the smart contract.The program will send your wallet address .01 ETH + 100,000 LRC + any additional LRC earned through interest.A piece of advice:In general: withdraw only when you want to sell LRC immediately.Otherwise, you can withdraw tokens later than others and you will receive a higher rate of return.If you only want to sell a partial amount, then choose to withdraw a partial amount of tokens from the contract, and continue to earn on the rest.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)On Loopring’s Long-Term Incentive Program was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 01. 29

Reddit AMA with Daniel Wang

Loopring Protocol founder, Daniel Wang, hosted a Reddit AMA to answer the community’s questions on Saturday, Jan 26th, 2019. This post sums up the questions and answers.1. Binance, the world’s largest crypto exchange by daily trading volume, is set to launch a beta version of its decentralized exchange (DEX) by early 2019. Binance has more users, if that happens, how could Loopring compete?There isn’t much information regarding the design, consensus, and governance of the upcoming Binance Chain. I expected it to be a sidechain with some POS (DPOS)-like consensus with an onchain order book and match engine, which should be similar to EtherDelta.​I like the one-app-per-side-chain idea, but the security of such a side-chain should be evaluated before swapping a large amount of asset from the main-chain to the sidechain. Now, most people have gained the knowledge that blockchain technology itself doesn’t guarantee security, it is the consensus algorithms, the distribution of block-mining power, and the decentralized governance that collectively decides how security it can be. The same blockchain codebase can create very different blockchain ecosystems, one may be very distributed and security and others can be very weak in security guarantees.We’ll see how Binance distributes the mining power and yield control to others. If this is not done right, such side-chain based DEXs are just another form of CEXs to fool people. I hope Binance can do it well.​Loopring is also working on our side-chain based DEX solution, we will work with Dora team to make sure the chain is sufficiently decentralized. The other major difference from the Binance chain is that our DEX side-chain will apply the same “off-chain order relay and on-chain settlement” principle. As we believe even sidechains can greatly improve throughput and lower gas cost, it cannot sustain if all orders are put onchain.2. Hey Daniel, Loopring Protocol 2.0 has launched and I really appreciate that Loopring focuses on developing the technology. Now DEX is lack of liquidity and it is hard to use DEX to fill the order. Could you please share your thoughts about the future trends of DEX and how can UP Wallet improve liquidity?All DEX projects face a common set of challenges, and one of them is the lack of liquidity. This is caused by the following (at least, not limited to): 1) there are still many people who don’t care about security and are quick OK with their CEX of choice. Some told me the volatility of crypto assets is a bigger risk for investors than the security of their exchange platform. If they can live with the volatility of crypto assets they can live with using CEXs. 2) Many people are not comfortable with managing their own keys (private keys). 3) DEX has a terrible user experience. 4) In many countries such as China, most people don’t value privacy and anonymity which are extra benefit you can get from DEX.​Noe of the DEX and protocols we see on the market is going to survive in the long run as none of them is good enough. DEXs must resolve the throughput issue but not relying on the underlying blockchain to scale up first — a public blockchain with well-distributed mining power may never scale up to a level that can support high frequent trading. Some tier-2 approach must be found and taken. With the Loopring Protocol 3 initiative, we are trying different approaches to scale up our DEX protocol and enhance the privacy of trading.3. It has been a while since LRN tokens have been released however roadmap of LRN slightly foggy. Can you please elaborate on the roadmap for LRN also LRN suffers greatly due to low liquidity is this issue goin to be resolved within the near future?Later this year, we introduce to the community the Loopring DEX sidechain. A great part of the LRN tokens we hold will be locked in a smart contract and be gradually ‘mined’ by block miners. LRN will also be used as the government token in the sidechain. LRN will no longer be the Loopring fee token on NEO.4. It’s clear to me that without well vetted stable coins, (Vetted in regard to their auditability and compliance with government regulations.) Dapps will struggle to provide the autonomous utility that I believe is envisioned for a next generation smart economy. The amount of regulatory and IT overhead in the financial space that cryptocurrencies can alleviate is astounding.Does loopring have plans to use a stable coin to on board enterprise level Dapps? Is this part of the roadmap?What are the plans to get corporations to integrate a protocol like loopring as token settlement and liquidity solution or is the target a p2p or both?Stablecoins, especially the local currency (fiat) backed ones, are very essential for crypto assets to be adopted by the mass — most people would feel comfortable to convert their fiat 1-to-1 to a crypto-form, then do the inter-crypto trading.We have worked with PwC Hong Kong on a stablecoin study and will issue the final paper in about a week (please follow our twitter account: loopringorg for update). Loopring as a protocol supports all ERC20 stablecoins regardless of their issuers. Our protocol no longer requires tokens to be whitelisted by us, relayers in our ecosystem can solely decide which ERC20 tokens they support in terms of token listing. We empower them by giving up the control which makes the Loopring Protocol further decentralized. In 2019, we’ll deliver a new relayer implementation and make it accessible to all partners (including enterprise) to bootstrap adoption, and stablecoin support is definitely a part of it.5. Governments across the world start to regulate the trading of cryptocurrencies . Does Loopring plan to add the functionality of KYC in your smart contract? If users should do the KYC, is it become more centralized instead of decentralized?We will not add KYC components to our protocol smart contracts. A DEX operator/relayer should fulfill his KYC duty and whitelist KYC’d addresses off-chain or on-chain (or with a hybrid approach). The KYC process and results should be verifiable by the regulators while DEX protocols don’t need to access that information.​In other words, DEX operators need to be regulated, the protocol which is for verifying matching result and performing settlements should not (the protocol should be audited though).​KYC can be decentralized to a certain degree, but some information (such as driver’s license) was generated by a central party, so to verify that kind of information, the KYC process has to access to the party’s database. Therefore it is quite hard to get KYC fully decentralized.​I don’t expect KYC to be as decentralized as the crypto asset itself. KYC is a transfer of credit from one party to another, regulators need to find someone to blame and fine if something bad happens.6. Daniel, a large amount of investors prefer to use centralized exchanges to trade now. Loopring is a protocol for DEX and how can you guys do the promotion about the products building on top of Loopring Protocol, e.g., UP Wallet? Do you have any idea about the user education?It takes time to make disruptive changes. My father still doesn’t know how to make a WeChat video call even though everybody around him is using the app on an hourly basis. I think he will never get used to this new type of communication, WeChat is just not his thing. This is the same in crypto, DEX will seem more natural for younger people. I believe one day when we approach them with the idea of centralized exchanges, they must feel we were such fools to trust those exchange operators who don’t even have a track record.7. Is Dolomite a part of Loopring? Looking forward to the launch, but it’s not clear if it’s a different company or not?Dolomite is a US-based startup and their DEX is being built on top of the Loopring Protocol.8. How’s the collaboration with UpWallet? In their communication the UpWallet team mentioned a few times 0x and Kyber as their (protocol) partners, but they talked never about Loopring…The UpWallet is developed using Loopring’s opensource, noncustodial wallet app codebase. Currently, the only DEX inside UpWallet is also integrated with our relayer, not 0x or Kyber’s. The company behind UpWallet, Up Blockchain Limited, is a Hong Kong-based company and is one of our strategic partners.9. Did you guys had already contact with the big wallet companys (Ledger, Trezor, MEW,…) to present the Loopring protocol?We didn’t eagerly approach them but I think they should have known of us, but they might not have learned the features and advantages of our protocol.10. Wouldn’t it be good to try (also) to integrate the Loopring protocol to the big CEX companys? So you can try to bridge the gap between CEX and DEX. Loopring could take profit from the liquidity of the CEX and the CEX could have extra trades / volume via the Loopring protocol (win/win?). So by integrating the Loopring protocol the CEX could become a “hybride CEX” :-)Not sure what they think, but our next relayer implementation will definitely connect to many CEX to source liquidity.11. Could it be useful to create a “DEX protocol alliance” and work together with for example 0x to create bigger liquidity?I’m not a fan of the alliance idea as I believe it is still too early. Most DEX protocols and apps are still trying to resolve technical issues, it is not the time to focus on the operation. One year later, you’ll probably find that most products built on top of the current DEX techstack vanished.12. Is there a connection / collaboration between LRN and NEX (Nash)? At the time LRN was launched, there were rumors the LRN protocol would be used in the NEX system… Will the Loopring protocol / LRN be involved in the NEX exchange?Not at all. I wonder if NEX is still around. If they are, we should ask them how they bypass those issues caused by NEO’s fee model.13. What DEX’s and CEX’s are gonna be owning and mining LRC ?LRC is an ERC20 token and has been fully issued, not minable. But you can purchase it from many exchanges.14. When can we expect to see a legitimate campaign to bootstrap liquidity?Mid-201915. In terms of promotion of the Loopring Protocol, is there any action that allows some traditional large financial institutions to adopt the protocol, is it possible to implement it?We have not yet started promoting too much to traditional financial institutions. I learned a little bit about this in my past entrepreneurship: making inroads in these types of businesses in China is very time consuming. There are many reasons for this, not to go through them all here.16. Is the Loopring Protocol active in countries where regulation of digital currency is friendly, such as Singapore, have you considered launching a fiat currency trading pair? In addition, how does the protocol connect the closed-loop transactions between the fiat currency and its own decentralized exchanges, and what actions and plans are there in this regard?The Loopring Foundation is a non-profit organization, but we will support partners in the ecosystem to provide support for legal, fiat currency transactions, especially for fiat-pegged stablecoin transactions.17. Although the Loopring Protocol has introduced version 2.0 and has a good idea, the current user traffic of the Upwallet wallet is still insufficient. Is there any way to solve this problem and the future planning in this area?At present, there is no rush to do traffic, and our focus is on developing better-used protocols. If the protocol is not designed well enough, all the research and development and operations on it may be for naught. One similar example is with virtual currency payment companies: currently, this type of company is very difficult to operate. One of the main factors is that the virtual currency itself is not friendly enough to pay (far less than Alipay and WeChat), so products based on this technology have difficulty succeeding. We hope that in the middle of 2019, our relays may start to have better trading volume.To stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Reddit AMA with Daniel Wang was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 01. 28

Loopring Bi-Weekly Update —...

Loopring Bi-Weekly Update — 01/19/2019A busy few weeks, filled with integration work of protocol 2.0 with relay 2.0, continued research, and a few conferences in Asia and North America. We’d like to note that on Saturday, January 26th, I (Daniel) will answer a Reddit AMA. Please ask your questions now!ProtocolDuring the last two weeks, we’ve been focusing on Protocol 2.0 and Relay 2.0 integration. Combined, this represents the comprehensive Loopring 2.0 system.Besides that, we continued working with the Wanchain team and deployed the Loopring protocol smart contracts on Wanchain, allowing their community of devs to use Loopring to build cross-chain DEXs. The details of deployment can be seen on Wanscan and are:Creator: 0x2902f430199397f9B320157021478016Da0F4876WLRC: 0x0f2e7C0E904a525A24FF6f658053f6bA5Ce7A209WETH: 0x28362cD634646620Ef2290058744f9244Bb90ED9BrokerRegistry: 0xEaF0dF9A65e6B97548E2a8fcCC58cC7304Ed68f0BurnRateTable: 0x58c85c107734E40Cf815A134B95318818274E8faOrderBook: 0x1db0422ba1E0dc146c7468E94f4cADaa5e6cE160OrderRegistry: 0x2472365dD57a9Ef927cadafCDE39A9009A7FC1DETradeDelegate: 0xC7D59c551A8d5A937A0D5B5F1E1d7d92b81e309ETradeHistory: 0x7D9A78a8d9F3c6BeE71079eB6d58aCeb0C863318FeeHolder: 0x235D48e9f00A13FE9fC0bc77D203B7375d1F6AA8BurnManager: 0x8Eb00a9F8211e0d157C5aB2a51f254de502f5259OrderCanceller: 0xD6a133Dc18edA0974DEd37207d289Db9BeA8532eRingSubmitter: 0x8a0fa3d2b2f2a80cdfaf8ad1348946417a09ec1bWe have also continued the sidechain development with the Dora team. The project has entered the final stage of development.RelayLightcone (Relay 2.0)We have completed encoding, storage and processing for Ethereum event logs. We have implemented data services for tokens and market information. We have completed optimizations for testing framework, preparing for the next integration testing.We have completed all basic features. In the next step, we will work on Relay deployment and integration testing. After completion of this — some time after the Chinese new year, mid/late Feb— the combined 2.0 experience will be complete, and some focus will shift towards more commercial facing efforts, and, importantly, liquidity provision and market making.Frontend & ProductiOS & AndroidIn iOS and Android development, we have completed optimizations for the cryptocurrency news feed section over the past two weeks. We have redesigned and implemented a UI to navigate to the news section from the home view. We have updated the layout of news list view, added news thumbnail photos, font adjustment and others.Besides the news section, we have completed the market view using native Android SDK. The market view includes market list view, line chart, orderbook, order submission and order cancellation.All of these features will be included in version 1.6.Operations & Marketing01/07/2019 — LRC is listed on stealthex.io, an anonymous crypto exchange (non-order book model).01/09/2019 — Community video submitted, Talking Loopring Cryptocurrency, by SmashingBloke.01/10/2019 — Loopring, as one of the WBTC DAO members, shares our Ethereum address in the WBTC DAO: 0xd8056194369F71A98b82799132F71f34084F7660.01/11/2019 — Loopring attends World Blockchain Forum (WBF) in Shenzhen. An aggregation of many of Asia’s Blockchain experts and enthusiasts to discuss the trending topics of the blockchain industry.Loopring @ WBF01/11/2019 — Loopring COO Johnston is interviewed by Milin Finance, a Chinese media outlet, and shares ring-matching concept.01/14/2019 — Loopring publishes the preview of Trust Framework for Fiat-Backed Stablecoin with PwC. The study focuses on the current state of stablecoins, their uses, and potential impact on the cryptocurrency and adjacent industries. Full report to be released this week.Trust Framework For Fiat Backed Stablecoins01/14/2019 — Loopring CMO, Jay Zhou, attends the Asian Financial Forum 2019 in Hong Kong.Loopring @ Asia Financial Forum01/15/2019 — Loopring is featured as a Top 3 protocol on Ethereum by Dapp.com 2018 Dapp Market Report.Dapp Market Report01/17/2019 — Loopring CEO, Daniel Wang, speaks about Loopring 2.0 and 2019 Development Roadmap in a livestream on the TokenClub app.Daniel livestream on TokenClub01/17/2019: Loopring Director of Business Development, Matt Finestone, attends the North American Bitcoin Conference in Miami, catching up with many of our friends such as Polymath, Decred, Qtum, and Quiknode.Loopring @ TNABCTo stay up-to-date with Loopring, please sign up for Loopring’s Bi-Weekly Update, and find us here:⭑ Twitter: twitter.com/loopringorg⭑ Reddit: reddit.com/r/loopringorg⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)⭑ Discord: discord.gg/KkYccYp⭑ StackOverflow: stackoverflow.com/c/loopring⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)Loopring Bi-Weekly Update — 01/19/2019 was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Loopring

19. 01. 20

Transaction History
Transaction History Market Market Transaction volume Address
CoinMex LRC/USDT 45.06 654,200,224.15 Short cut
BITKER LRC/ETH 45.34 310,201,302.82 Short cut
DragonEx LRC/USDT 45.09 287,599,495.90 Short cut
Dcoin LRC/USDT 44.82 279,601,629.25 Short cut
BITHUMB LRC/KRW 78.50 124,607,992.32 Short cut
Binance LRC/ETH 45.76 66,768,359.57 Short cut
CoinPlace LRC/BTC 230.69 41,864,136.94 Short cut
OKEx LRC/ETH 45.40 27,821,392.25 Short cut
Coinbit LRC/KRW 1,310.00 16,409,943.81 Short cut
Gate.io LRC/ETH 44.88 6,233,269.34 Short cut
Bittrex LRC/BTC 45.54 5,042,640.56 Short cut
UPbit LRC/BTC 45.66 3,023,492.20 Short cut
Kyber Network LRC/ETH 45.42 1,320,004.80 Short cut
Bitrue LRC/ETH 45.77 787,154.39 Short cut
LiveCoin LRC/BTC 43.50 205,655.76 Short cut
HitBTC LRC/ETH 45.25 50,535.44 Short cut
Bitbns LRC/INR 50.84 7,880.42 Short cut
Ethfinex LRC/USD 45.87 4,186.82 Short cut
YObit LRC/BTC 159.45 0.00 Short cut
OTCBTC LRC/ETH 43.09 0.00 Short cut
CoinExchange To be provided later To be provided later To be provided later Short cut
Security verification

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Information
Platform ERC20
Accepting
Hard cap -
Audit -
Stage -
Location -
Market of major crypto coins *2019년 07월 22일 last update

Bitcoin

BTC

12,328,899.48 KRW 4.04%

Ethereum

ETH

260,379.78 KRW 4.76%

Ripple

XRP

383.36 KRW 2.95%

Litecoin

LTC

115,096.71 KRW 5.18%

Bitcoin Cash

BCH

372,348.14 KRW 5.26%

Binance Coin

BNB

35,373.19 KRW 2.98%

Tether

USDT

1,174.34 KRW 0.72%

EOS

EOS

4,982.82 KRW 4.08%

Bitcoin SV

BSV

196,709.73 KRW 4.72%

TRON

TRX

32.80 KRW 7.19%

Stellar

XLM

105.86 KRW 6.22%

Cardano

ADA

71.00 KRW 6.84%

Monero

XMR

98,717.82 KRW 3.07%

Dash

DASH

137,382.92 KRW 2.93%

NEO

NEO

14,956.32 KRW 7.00%

Ethereum Classic

ETC

7,263.32 KRW 1.79%

Tezos

XTZ

1,233.94 KRW 1.56%

NEM

XEM

78.27 KRW 5.10%

Maker

MKR

661,646.05 KRW 1.55%

Ontology

ONT

1,185.49 KRW 5.61%