The Loopring Foundation recently launched the world's first decentralized exchange (DEX) alliance initiative with an aim to fix long-standing issues in the online token exchange marketplace. As a testimony to the success of the project, 10 ERC20 tokens have already been added to the DEX platform. Here, we discuss Loopring, the vision behind the DEX Alliance, and how the Loopring protocol and the DEX alliance initiative will redefine crypto-asset exchange services in the future. A brief overview of the newly listed tokens is also provided.
While the cryptocurrency market continues to slowly develop and mature, what we see is that a number of cryptocurrency exchanges today suffer from a wide range of issues. Many exchanges require the deposit of trader funds into trading wallets under the control of the exchange, exposing traders to hacking risks and front-running. Others offer only limited broadcasting of orders to users within a confined network, creating liquidity issues, not to mention problems of mismatched buys and sells. Finally, chain-specific trading protocols limit the flexibility with which such exchanges can facilitate the trade and exchange of different cryptocurrencies and crypto assets, resulting in siloed niches within the wider cryptocurrency space.
These are the problems that Loopring was designed to overcome. Using its deep blockchain expertise and a focus on building technology and products, the Loopring Foundation launched the DEX alliance initiative to bring low-cost, risk-free, and completely private and secure crypto trading to the general public.
As an open-source crypto protocol that is blockchain agnostic, Loopring provides a unified trading experience for users and projects regardless of the underlying technology they use. Furthermore, anyone can build on top of the Loopring system, and using its services, running trading nodes, and facilitating the exchange of tokens and assets using Loopring is completely free. Finally, because Loopring allows orders to be matched with zero reserves (and only requiring orders to be signed using a trader's private keys), the risk of hacks and losing assets is virtually zero.
The DEX alliance initiative has two phases: Bootstrapping and Superconducting.
Bootstrapping: The Bootstrapping phase of the initiative simply requires that wallets, decentralized exchanges, and other market makers use Loopring's Bootstrap service (bootstrap.loopring.io). Loopring then uses its own relay clusters to match orders, and participant partners are paid 20% of the trading fees they generate, for all orders. These fees are guaranteed by the protocol in real time. Furthermore, all excess profits, which amount to 80% of the matching fees minus relay operational costs, will be distributed to partners twice a year, based on each partner's liquidity contribution.
Open sourced libraries and front-end solutions will also available from the Loopring team to help partners build their own exchanges, wallets, and apps.
Superconducting: In this phase, Loopring will provide inter-relay liquidity sharing by connecting with third-party relay clusters. This will provide platform users with access to more relays (and, of course, a larger market), thereby improving order matching efficiency. Participants can even build their own relay clusters and join the order sharing network by improving upon Loopring's open-sourced relay software.
Once the Superconducting alliance achieves long-term stability, Loopring will stop maintaining non-profit Bootstrap clusters or will transfer them to other institutions for commercial operation.
In order to register with the alliance, the first step is to register your ERC20 token with Loopring's smart contract. Qualified tokens will be registered for free. The only requirements that tokens must meet are that they must conform to the ERC20 standard, they must not allow for arbitrary additional issuance, the code for the tokens must be open-sourced and verified by etherscan.io, and the code must be bug-free.
Once applicants have completed the first step, they should register the ERC20 trading pairs in the Bootstrap clusters. The Loopring Foundation will process these applications on a weekly basis.
Finally, trading pairs in the wallet or decentralized exchange need to be configured, and this process is completely determined by the wallet or exchange that the applicant plans to run.
Once they are ready, applicants should send a team description and other necessary material to firstname.lastname@example.org.
The launch of the DEX alliance initiative has already met an early success milestone. A batch of 10 highly regarded tokens and projects having already completed all listing requirements and now have their tokens available for trading on the DEX platform, Loopr.
These tokens include the Binance (BNB) token, the native token of the Binance exchange, one of the world's leading crypto-exchanges, CPChain (CPC), a new distributed infrastructure for next generation IoT, and Huobi Global (HT), which is the native token of the Huobi exchange.
Other newly added listings include Tokenomy (TEN), a platform for enabling easy transformations of value into blockchain tokens, thereby allowing companies and organizations to distribute and exchange their tokens, as well as Gifto Official (GTO), a self-sustaining ecosystem for exchanging virtual gifts.
These five tokens, as well as the other five in the inaugural batch of the DEX, have met Loopring's onboarding and registration requirements and are now an official part of the Loopring DEX alliance platform.
We've alluded to a number of benefits of the Loopring protocol and the DEX alliance initiative above. Here is a summarized list of benefits once again.
- Non-custodial order matching technology ensures that orders are trustlessly broadcast to relay clusters, insulating investor assets from risk.
- Loopring, as a nonprofit, does not participate in marketing gimmicks, nor does it fuel FOMO or pump and dump schemes.
- Furthermore, as an open-source protocol that is non-exclusive and open to all, is open for anyone to use, even if they do not join the alliance, and participants can stop using the official Loopring Bootstrap clusters and switch to their own clusters or any other third-party matching services whenever they wish.
- Finally, in addition to being 100% open-source, Loopring provides services that are completely free and charges no commission fee whatsoever. With an unrelenting focus on technology and products, Loopring is committed to research, innovation, and providing valuable tools and services to the blockchain and cryptocurrency spaces.
To learn more about Loopring, its various initiatives in the crypto and blockchain space, to meet the team or to read up on all the latest news and developments, reach out to the foundation at the links below.
Home page: www.loorping.org
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