Loopring (LRC) is an Ethereum-based, open-source protocol designed to improve the speed and cost of blockchain transactions. It uses zero-knowledge rollup (zkRollup) technology to facilitate decentralized exchanges (DEXs) and automated market makers (AMMs) on multiple blockchains. The native LRC token is used for fees, liquidity provision, and voting in the decentralized autonomous organization (DAO).
Loopring (LRC) is used to power a decentralized exchange (DEX) on the Ethereum blockchain. To use Loopring, users need to move their funds onto the Loopring protocol by sending them to a smart contract managed by Loopring. This allows for faster and cheaper transactions on Ethereum. Loopring exchanges move the computation necessary to complete trades off of the main Ethereum blockchain, which includes information such as a user’s account balances and order histories. Users can interact with the Loopring protocol through the Loopring Wallet, a web-based or mobile-based application that enables users to manage their funds, place orders, and trade on Loopring DEXs.
There are two ways to use Loopring:
Order Book Trading: Users can place limit orders or market orders on a Loopring DEX that uses an order book model. Orders are matched with other orders in a circular trade, called an order ring, which is verified by smart contracts and settled on the Ethereum blockchain using zkRollups.
AMM Trading: Users can swap tokens on a Loopring DEX that uses an automated market maker (AMM) model. They can provide liquidity to an AMM pool and earn fees from other traders. They can also withdraw their liquidity at any time. The AMM trades are settled on the Ethereum blockchain using zkRollups.
Loopring's zkRollups technology combines zero-knowledge proofs and rollups to achieve high throughput and low fees, making it a unique solution for decentralized exchanges on the Ethereum blockchain.
To store Loopring (LRC) tokens, you have several options:
Hardware Wallets: Ledger hardware wallets, such as the Ledger Nano S Plus or Ledger Nano X, are highly secure and trusted options. They store your private keys offline, making them resistant to malicious attacks. You can manage your LRC tokens using the Ledger Live app.
Software Wallets: Software wallets are free and easy to use. They can be downloaded as smartphone or desktop apps and can be custodial or non-custodial. Non-custodial wallets use secure elements on your device to store private keys, while custodial wallets have the service provider manage and back up your keys. Software wallets are convenient but considered less secure than hardware wallets.
Online Wallets: Online wallets, also known as web wallets, are free and accessible from multiple devices using a web browser. They are considered hot wallets and can be less secure than hardware or software alternatives. It is essential to choose a reputable service with a track record in security and custody.
Loopring Wallet: The Loopring wallet is a smart contract wallet, which means it has higher gas fees compared to regular wallets. It supports storing multiple ERC-20 tokens, including LRC, and allows for trading on the Loopring DEX.
Kriptomat: Kriptomat offers a secure storage solution that allows you to store and trade your LRC tokens without hassle. It provides enterprise-grade security and user-friendly functionality.
Bitget Wallet: The Bitget wallet supports storing LRC tokens and allows for easy management through its interface.
When choosing a wallet, consider factors such as security, ease of use, and fees associated with transactions.
To buy Loopring (LRC) tokens, you can follow these steps:
Create an Account: Sign up for a cryptocurrency exchange that supports LRC, such as Kraken, Coinbase, Uphold, or Kriptomat. Verify your email address and identity as required.
Add a Payment Method: Connect a payment method like a bank account, debit card, or credit card to your exchange account. Some exchanges also accept Bitcoin (BTC) for deposits.
Deposit Funds: Add funds to your exchange account using your chosen payment method. This may involve a short waiting period for verification.
- Buy Loopring: Search for Loopring (LRC) on the exchange and select it. Enter the amount you want to buy, preview the transaction, and confirm your purchase.
Additionally, you can also use other exchanges like WazirX, but note that some exchanges have specific restrictions, such as WazirX not being available to USA residents.
