Loopring (LRC) is an Ethereum-based cryptocurrency token that forms part of an open protocol designed for the construction of decentralized crypto exchanges. The protocol aims to amalgamate the benefits of centralized order matching with decentralized on-blockchain order settlement, creating a hybrid product that aims to incorporate aspects of both centralized and decentralized exchanges. The LRC tokens were first made available to the public during an initial coin offering (ICO) in August 2017, and the Loopring protocol was first deployed on Ethereum mainnet in December 2019.

Loopring operates by combining elements of centralized and decentralized cryptocurrency exchanges to create a protocol that aims to utilize their advantages and eliminate inefficiencies. The protocol manages orders in a centralized manner but settles the trades on-blockchain. It also combines up to 16 orders into circular trades instead of allowing strictly one vs. one trading pairs. This approach aims to increase the efficiency of order execution and enhance the liquidity of decentralized exchanges. The issuance of LRC tokens is governed by the smart contracts that comprise the Loopring Protocol. Nodes on the Loopring network are rewarded in LRC tokens for combining individual orders into order rings, maintaining public order books and trade history, and in some cases broadcasting orders to other relays.

Loopring's primary use case is to provide a platform for the building of decentralized crypto exchanges. By combining the advantages of centralized and decentralized exchanges, Loopring aims to offer an efficient and transparent trading experience. The protocol's hybrid approach seeks to eliminate the custodial and transparency risks associated with centralized exchanges, while also addressing the efficiency and liquidity issues often associated with decentralized exchanges. Furthermore, Loopring's protocol allows for the creation of circular trades, which can potentially enhance liquidity and order execution efficiency.

Loopring was founded by Daniel Wang, a software engineer and entrepreneur based in Shanghai, China. Wang has held multiple managerial and executive positions in major tech companies, including Google and the Chinese e-commerce giant JD.com. He has also co-founded several companies, including the cryptocurrency services firm Coinport Technology Ltd. The LRC tokens were first made available to the public during an initial coin offering (ICO) in August 2017. The Loopring protocol was first deployed on Ethereum mainnet in December 2019. Since its inception, Loopring has been aiming to improve the cryptocurrency trading experience by combining aspects of both centralized and decentralized exchanges.

Loopring's zkRollup technology aims to improve scalability on Ethereum by moving computation and data storage off the main blockchain. This is achieved by batching hundreds of transactions off-chain and generating cryptographic proofs, known as validity proofs, that certify the validity of those transactions. Instead of posting transaction data on-chain, zkRollups submit only these succinct proofs to verify the transactions are correct. This approach aims to improve the blockchain's capacity while striving to ensure users can still benefit from the blockchain’s security. ZkRollups aim to process a high volume of transactions per second with potential cost efficiencies compared to transacting directly on-chain.

Loopring breaks down the traditional exchange components and substitutes them with a set of public smart contracts and decentralized actors. A distinctive characteristic of Loopring is its capacity to combine multiple orders in a circular trade, which aims to address liquidity concerns. This is accomplished through a process known as "order-ring", where each order's token to sell becomes another order's token to buy, forming a loop that allows each order to exchange their desired tokens without needing an opposing order for its pair. Loopring also employs a distinctive approach to prevent front-running, an unfair practice of submitting transactions into a block faster than the original solution provider. Crucially, Loopring allows users to retain custody of their funds. Users authorize the Loopring Protocol Smart Contracts (LPSC) to manage a specific amount of their tokens for trading, but the tokens are not locked and users remain free to move them while the order is being processed.

The LRC (Loopring Coin) token is a crucial component of the Loopring ecosystem. LRC powers the Loopring protocol, which seeks to integrate features of centralized and decentralized exchanges. It facilitates centralized order-matching with decentralized on-chain order settlement. LRC is used to encourage behavior that is beneficial to the Loopring ecosystem, permitting holders to participate in the system and support the transition to Ethereum L2. The token is utilized for providing non-monetary incentives to liquidity providers, insurers, and the Loopring DAO (Decentralized Autonomous Organization). In addition, LRC is utilized in staking, a process where users lock up their tokens to contribute to the network's security and operations, receiving non-financial incentives for their contribution.

The Loopring Wallet is a smart wallet that is designed with the intention of improving the security and functionality of cryptocurrency transactions. It employs a social recovery mechanism, allowing users to select trusted individuals, known as guardians, to assist in wallet recovery in case of loss or theft. This feature seeks to reduce the need for seed phrases, thereby aiming to lower the risk of a single point of failure. The wallet enables users to pay transaction fees with any token of their choice. Security features encompass address whitelisting, wallet locking and unlocking, encrypted cloud recovery backup, and two-factor authentication (2FA). The Loopring Wallet supports a variety of activities, such as NFTs, staking, payments, block trading, and order book trading. It is intended that future updates will encompass multi-network compatibility and an inheritance feature that allows users to designate an inheritor for their wallet.

Loopring addresses concerns related to liquidity and market depth on its platform by utilizing its underlying protocol to implement a feature known as "Block Trade". This feature draws from multiple liquidity sources, notably liquidity from centralized platforms, to facilitate user transactions while they maintain control of their own assets. These swap transactions take place directly between dedicated entities and do not influence existing decentralized exchange (DEX) liquidity or the prices for other users. This process mirrors block trading systems found in traditional stock markets, where large, privately negotiated transactions occur outside of the open market through private purchase agreements. This approach seeks to tackle the issue of insufficient liquidity or market depth, especially for larger traders. When users attempt large swaps, the automated market maker (AMM) pool may not have adequate liquidity, resulting in a noticeable change in price.

Loopring decentralized exchange (DEX) is a platform that facilitates the trading of cryptocurrencies in a non-custodial manner, meaning users maintain full custody of their funds. The exchange facilitates a variety of asset interactions and trading pairs, primarily those based on the Ethereum blockchain. One of the trading pairs on Loopring DEX is LRC/ETH. However, Loopring aims to be compatible with any smart contract platform that supports EVM-compatible smart contracts. This flexibility allows Loopring to facilitate a wide range of asset interactions and trading pairs. It's important to note that the specific trading pairs and assets supported can vary and the Loopring DEX may have the most current information.

Loopring utilizes a variety of measures with the aim to ensure the security of user funds and transactions. It seeks to reduce the reliance on a central authority by using a decentralized architecture, which intends to lessen the risk of single points of failure. Loopring also uses smart contracts on the Ethereum blockchain, which aim to provide transparency and immutability to the transaction process. These smart contracts are audited by third-party firms to ensure their security and reliability. And, Loopring employs a protocol called zkRollup, which aims to support high throughput and scalability while striving to maintain the security of the underlying blockchain. This protocol aggregates multiple transactions into a single proof, with the intention to lessen the computational load and mitigate the risk of potential attacks. To protect user funds, Loopring utilizes a non-custodial approach, meaning that users have full control over their assets at all times. The exchange does not hold user funds, which aims to lessen the risk of hacking or theft. And, Loopring utilizes multi-signature wallets and cold storage solutions with the aim to enhance the security of user assets.

Loopring aims to be blockchain agnostic, with the intention to operate on any blockchain that supports smart contracts. This feature is intended to allow Loopring to handle interoperability with other blockchain networks and assets. Loopring seeks to integrate with smart contract platforms such as Ethereum and NEO. This implies that users may be able to transfer tokens across these two blockchains using Loopring’s protocol. Loopring uses a technology called zkRollups, which allows it to bundle multiple transactions into a single proof, which can be verified on the Ethereum network. This aims to optimize transaction times and manage costs. Loopring provides options for different types of order matching and settlement methods, such as automated market makers (AMMs) or order books. This aims to provide users with a variety of options for their transaction experience.