The Loopring non-custodial order book-based exchange protocol was originally launched in November 2019 and the zkRollup based decentralized exchange was deployed as version 3 the following month.
The project has just announced that its latest v3.6 AMM has gone live ushering in extra functionality like the ability to do gas-free instant swaps and gas-free instant adding/removing liquidity as a liquidity provider on Layer 2.
Managing Partner at Multicoincap, Kyle Samani, commented that it is the first real AMM on Ethereum Layer 2.
Loopring Boasts Speed, Cost Savings, and Rewards
Loopring has its own native LRC token which has been enabled on the decentralized exchange in a liquidity pool paired with ETH with $5 million worth of collateral in it.
The previous exchange was based on order-book trading, which is how centralized exchanges operate. However, it has yet to be enabled on the new v3.6 DEX.
There will also be support for smart order routing which enables a user’s order to be routed to corresponding AMM pools and order books, splitting orders to find the best pricing execution.
In addition to the LRC/ETH pool, further AMM liquidity mining will be enabled this month, incentivizing liquidity providers for selected pools with rewards paid out in LRC.
The blog post added;
“Loopring 3.6 represents a massive upgrade to our protocol. After having run our zkRollup for the past year on Ethereum mainnet, we have taken all our learnings and put them into this release.”
zkRollups is a Layer 2 scaling solution that increases scalability through the bundling of transfers into a single transaction and increasing the number of transactions per second on the Ethereum network while reducing network fees.
L2 solutions are increasingly being rolled out. Coinbase integrated Optimism’s Optimistic Rollup testnet into its wallet in mid-October and MetaMask integrated a Snap plugin that utilizes L2 solutions in the same month.
LRC Price Reaction
Loopring’s native LRC token has fallen 4% on the day to $0.193, but its 44% gains over the past month are more impressive.
Like most DeFi related tokens, LRC is down from its September high by 25%. In terms of total collateral locked, Loopring is a minnow compared to its DeFi brethren with just $7.4 million TVL on the protocol.