Loopring is one of the pioneering Ethereum Zkrollup protocols — launched in 2017 and implementing a production zkRollup DEX and payment system years before “ZK rollup” became mainstream DeFi terminology. Using zero-knowledge proofs (Zk Snark|Zk Snarks), Loopring batches thousands of trades and transfers off-chain, then submits a succinct proof to Ethereum — providing Ethereum-level security without trusting the Loopring operator, at a fraction of the gas cost. LRC is used for paying trading fees (at a discount), staking by exchange operators, and protocol governance. Loopring’s zkEVM (v6) development pivoted the project toward general smart contract rollup territory in 2023.
| Stat | Value |
|---|---|
| Ticker | LRC |
| Price | $0.02 |
| Market Cap | $20.73M |
| 24h Change | +3.8% |
| Circulating Supply | 1.25B LRC |
| Max Supply | 1.37B LRC |
| All-Time High | $3.75 |
| Contract (Ethereum) | 0xbbbb...eafd |
| Contract (Energi) | 0x193d...bbec |
| Contract (Arbitrum One) | 0x46d0...7fbe |
How It Works
zkRollup DEX:
Loopring’s exchange batches orders off-chain, matches them via an order book or AMM, then posts a validity proof (zk-SNARK) to Ethereum. The proof mathematically guarantees all trades were executed correctly. Users can always withdraw to Ethereum L1 even if the operator is offline.
Non-custodial design:
Unlike centralized exchanges, Loopring operators cannot steal user funds — the smart contract enforces withdrawal rights provably, backed by ZK proofs.
LRC staking (exchange operators):
To operate a Loopring-based exchange, operators must stake a minimum amount of LRC. Staked LRC is slashed if the operator misbehaves (fails to process withdrawals). This creates an economic security bond.
Loopring Wallet:
A smart contract wallet on the Loopring zkRollup with social recovery features (guardians) enabling gasless transfers via the L2 layer.
zkEVM direction:
Later Loopring development (v6) moved toward a general-purpose zkEVM, positioning the project within the broader ZK rollup ecosystem (competing with zkSync, Polygon zkEVM).
Tokenomics
| Metric | Value |
|---|---|
| Max Supply | 1,374,513,896 LRC |
| Exchange staking | Operators stake LRC to run exchanges |
| Fee discount | LRC holders get lower trading fees |
| Protocol fees | 20% of trading fees → protocol treasury |
| ATH | ~$3.83 (November 2021) |
Use Cases
- Fee discount — LRC holders pay reduced trading fees on Loopring DEX
- Exchange operation — LRC required to operate DEX on Loopring protocol
- Governance — LRC holders vote on protocol upgrades
- Staking rewards — Staked LRC earns a share of trading fee revenue
History
- 2017 — Daniel Wang founds Loopring; whitepaper on zkRollup-based DEX
- Aug 2017 — LRC ICO raises $45M
- 2019 — Loopring 3.0 (first production zkRollup DEX) launches
- 2020 — Loopring DEX goes live; first significant on-chain ZK trading volume
- Oct 2021 — Loopring Wallet (smart contract wallet) launches; LRC ATH ~$3.83
- Nov 2021 — GameStop NFT marketplace rumor causes LRC to pump 10× in days
- 2022 — ZK ecosystem matures; Loopring faces competition from zkSync, StarkEx, Arbitrum
- 2023 — zkEVM research and development; ecosystem consolidation
Common Misconceptions
“Loopring is an Ethereum competitor.” Loopring is built entirely on top of Ethereum — it is an L2 scaling solution that inherits Ethereum security. It competes with other L2s, not with Ethereum itself.
“The GameStop partnership was real.” GameStop did launch an NFT marketplace (using Loopring’s L2), but the collaboration was more limited than speculation suggested and later wound down when GameStop shut its NFT marketplace.