Loopring is an Ethereum zkRollup protocol: a layer-2 (L2) scaling solution. Loopring's L2 increases transaction throughput and decreases cost, while maintaining complete Ethereum security guarantees. Loopring's zkRollup supports token transfers, orderbook exchanges, and AMM (automated market maker) exchanges.
In addition to the open source Loopring Protocol, Loopring also builds products atop, namely the Loopring Exchange - an orderbook and AMM DEX, and Loopring Wallet - a mobile smart contract wallet. From the perspective of users, Loopring allows instant and gas-free transfers, trades, and liquidity provision.
Loopring users deposit their assets on-chain into a zkRollup smart contract, which are then represented in an off-chain data structure called a Merkle tree. Transactions then occur off-chain, and changes to the state of the Merkle tree (user transfers, trades, etc.,) are aggregated by relayers, and compressed with a cryptographic proof (zkSNARK) attesting to its validity. Because of these validity proofs and transaction data stored on-chain, users are always able to withdraw their assets from Loopring L2 to Ethereum L1.
Loopring's protocol token, LRC, is used in liquidity pools, an insurance fund, and governance of the protocol. Loopring released their first zkRollup (v3) in December 2019, and their new version (v3.6) in December 2020. Loopring’s [latest audit, https://github.com/Loopring/protocols/tree/master/packages/loopring_v3/security_audit] was conducted by Least Authority in November 2020.
How to use Loopring?
On desktop, users can access [Loopring Exchange, https://exchange.loopring.io]. On mobile, the [Loopring Wallet, https://loopring.io] app can be downloaded. In both cases, once you deposit assets from Ethereum (L1), the full functionality of Loopring L2 is accessible: instant, gas-free transfers, trades and liquidity provision.