About Loopring

Loopring is a decentralized exchange (DEX) that operates on an Ethereum Layer-2 solution known as zkRollup. This technology enhances scalability by processing transactions off the main Ethereum blockchain, utilizing it primarily for data storage and verification. Loopring integrates both Automated Market Maker (AMM) and orderbook-based trading systems, significantly increasing transaction throughput to approximately 2,025 trades per second. In contrast, the Ethereum network typically handles around 15 transactions per second. This efficiency translates to remarkably low transaction costs, with trade settlements costing as little as $0.00015. The enhanced performance of Loopring makes it suitable for professional traders and market makers, enabling the implementation of algorithmic trading strategies and automated trading bots that were previously unfeasible on traditional DEXs due to high costs and slow processing times. With the advancements introduced in Loopring 3.0, orderbook-based DEXs can now operate competitively, potentially challenging the dominance of centralized exchanges. This evolution in decentralized trading infrastructure may lead to a shift in market dynamics, favoring non-custodial solutions that prioritize user autonomy and lower fees.