About Loopring Coin
Loopring price today is $0.592769 with a 24-hour trading volume of $95,982,532. LRC price is down -0.7% in the last 24 hours. It has a circulating supply of 1.2 Billion LRC coins and a max supply of 1.37 Billion. Coinbase Pro is the current most active market trading it.
What is LRC?
LRC is the governance token for Loopring.
How to obtain LRC?
What is Loopring?
Loopring is a Decentralized Exchange (DEX) built on an Ethereum Layer-2 (L2) solution called zkRollup. It has both Automated Market Maker (AMM)-based and orderbook-based exchanges.
zkRollup is an Ethereum L2 scaling solution that migrates computations off the blockchain. Loopring protocol only uses the underlying Ethereum blockchain as a data layer and a verification layer. As a result, Loopring's throughput is as high as 2,025 trades per second compared to Ethereum’s current throughput of 15 transactions per second. The result is that the cost per trade settlement is as small as $0.00015.
Loopring's performance is sufficient for professional traders and market makers to deploy algorithmic strategies and other automated trading bots. This was not previously possible on any DEX as it was prohibitively slow and expensive. By building on top of Loopring 3.0, orderbook-based DEXs can be commercially viable for the first time. Loopring expects non-custodial exchanges can begin to outcompete and displace many centralized counterparts.
How to use the Loopring DEX?
Loopring DEX is not composable with other L1 dapps and L2 dapps that are not built on zkRollup. As such, users will have to deposit their assets to the L2 chain before trading. If users want to use other Ethereum applications, they will have to withdraw from the L2 chain back to the Ethereum main chain, incurring significant gas fees. Due to these limitations, Loopring DEX has yet to gain significant traction.
What are the fees incurred from using Loopring DEX?
There is a 0.25% fee for swaps done on Loopring’s L2 AMM, including the gas fee.
0.15% of this fee goes to liquidity providers (LPs) for the relevant pool. These are the people who provide the assets in the pool for users to swap.
0.1% is the L2 transaction fee, paid to the Loopring relayer so the zkRollup can run.
It is from this L2 fee of 0.1% that the protocol fee is paid. So, 0.1% * 20% protocol percentage = 0.02% protocol fee from AMM swaps.
Trading fees on the orderbook follow a maker-taker model.
Taker fees are 0.25% (or lower for VIP tiers). Takers are users who take liquidity from the orderbook (they are filled immediately).
Maker fees are -0.02% (negative 2 bps). Makers are users who add liquidity to the orderbook (their orders rest on the book for some time). Makers earn rebates for their service of providing liquidity, just like LPs earn in the AMM pools. Makers earn 2 bps (0.02%) on all of their filled orders.
On stablecoin vs stablecoin pairs, the taker fee is 0.04%, and the maker fee is still -0.02%.
Protocol fees are once again 20% of the L2 fee (removing the liquidity incentive for makers first). So, protocol percentage = (0.25% - 0.02%) * 20% = 0.046% protocol fee from orderbook trading and 0.004% on stablecoin-stablecoin orderbook trading.
There are small fixed fees for L2 transfers for users, currently $0.05. The protocol fee is once again 20% of the relayer’s fee, so $0.01.
Summary — the current fees earned by the protocol are
0.020% on AMM swaps
0.046% on orderbook trades
0.004% on stablecoin-stablecoin trades
$0.01 on transfers
Protocol fees are paid to 3 types of participants:
a) Liquidity Providers (liquidity mining incentives) - 80%
b) Insurers - 10%
c) Loopring DAO - 10%
Protocol fees accrued in tokens other than LRC and ETH will be sold for and distributed in LRC or ETH monthly.