Loopring AMA with Matthew Finestone


We’re excited to start our AMA series with a discussion with the Loopring. We’re joined by:

Matthew Finestone, Head of Business

Suggested reading for AMA:

BEFORE YOU ASK YOUR QUESTIONS, please read the rules below:

  • The Loopring team will answer questions on Thursday, August 20, 10AM PST and it would be live-streamed at Defiprime youtube channel here.
    Smash that Set reminder button:
  • If you are here before then, please feel free to ask your questions in this thread.
  • Read existing questions before you post yours to ensure it hasn’t already been asked.
  • Like questions you think are particularly valuable.
  • Please only ask one question per comment. If you have multiple questions, use multiple comments.
  • Please refrain from answering questions.
  • Please stay on-topic. The off-topic discussion will be moderated.
  • :moneybag: Defiprime team would choose one best question and reward it with $100 USDC.
  • :moneybag: Loopring team would choose one best question and reward it with $50 in LRC and a VIP tier.

How do you see the Loopring project by the end of the year? Despite being in the middle of this pandemic due to Covid-19, will Loopring be able to finish a 2020 year of achievements and goals accomplished? What would be one of those goals that you hope to achieve?

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Loopring looks promising but it confuses me that there are so many other Blockchain project. Why should I pay attention in Loopring to give it the importance it deserves? For the success of a project, investors, community and developers play a major role. What is your strategy to get them involve

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Why would someone use Looping to buy coins instead of simply using 1inch/paraswap/ any other aggregator?

I understand that Loopring (on their twitter) broke down the benefits when it comes to gas fees and such – but when you factor in the lack of liquidity on the platform it isn’t worth it anymore.

I love the platform and think it is really something that can change trading and such. But we have to be open about the lack of liquidity and we need a clear strategy on how to tackle that. What is the strategy?

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Is there any sort of plan to move governance of loopring to a decentralized mechanism run by LRC holders? There is already dex revenue sharing, so moving in that direction could be interesting to help shape the future of the project.

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I love the project and the easiness of using the exchange, it’s quick fast and cheap. I also know I can stake the LRC token but what I don’t know(or it’s not clear to me) whether this is safe and what are the rewards. It’s a very simple question, sorry but I just try to find out whether the rewards are worth the risk.

Hi Matthew. In some ways any L2 solution is a walled garden. You have to pay gas to get in, but once in you are sheltered from the wilds of the L1 gas price storms. Loopring.exchange is a small garden at the moment, and you are obviously tying to incentives more liquidity onto the exchange.

What else are you doing to increase the area of the walled garden?
portfolio trackers (Rotki) integration so L2 assets can be tracked outside loopring.
Wallet integration?
Integration into DeFi applications (would MKR accept L2 deposits as collateral ?).

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Other than individual staking, the LRC has utility for exchanges to stake to become part of the L2 ecosystem.
How far are you down the road to having competitors / other exchanges using LRC under the hood? Will there be public announcements, or integration without announcement?

Scalability and high gas fees are the problems for Blockchain games built on Ethereum specifically those harnesses fungible and non-fungible tokens. Will Loopring’s layer-2 scalability solutions solve this?

What does composable l2 look like for loopring?

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L1 governance gets impractical with high gas fees. KNC for example requires staking, regular votes and regular reward claims.
Can the governance functions of other tokens be moved into znrollups?
If so, can loopring benefit from this e.g. offering a service to support the L2 governance of other tokens?

What advantages does Loopring have in terms of liquidity and transaction fees?
How is the listing process in Loopring Exchange and how do you choose projects to be listed?

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It’s proven interoperability floats all boats. What is Loopring doing to make this system compatible and how can you perceive this being possible? This also involves non-zkrollup systems.

3.6 allows sending to L1 addresses. Will these require L1 gas? Or will the deposited coins stay as L2 until the address holder pays gas to drop them to L1?

Bitcoin grants (and additional panvala) allow community members to donate to projects and there is additional.funding given from a central pool. The additional funding is designed to encourage multiple support ( 10x 1DAI donations get more additional funding than a single 10 DAI donation).

However multiple 1 DAI donations to different projects in L1 will just waste gas.

Could the gitcoin grant donation process be replicated within the loopring protocol to make such micropayments cheep so wider donations will be encouraged?

(I think such an demonstration of proof of concept of micropaymets during the next round of grants could attract lots of attention / address registration to the loopring protocol).

When the Loopring Wallet arrives, in order to interact with other wallets or exchanges, would it have a portfolio of our assets separated according to whether they are in L1 or L2?


In the new releases, would it be posible to transfer trough Loopring Pay a token that’s not listed yet (for example, pasting the token address), or it’s necesary that the Loopring team continue to list them?


Loopring has proven to have a very strong team and security of users assets is one of the main aspects of this system. In one aspect, we can see this in the audit submissions of it’s smart contracts. In light of the recent smart contract hacks, does Loopring carry any smart contract insurance to cover a possible hack of it’s contracts?

The scaling behind Loopring is great and you guys seem to improve the tech with every release, but what are your plans to attract liquidity?

L2 is a natural sillo for liquidity, so it will be a battle to attract it.

  • Deversifi already has more liquidity and dy/dx just announced they will be joining the same L2 soon.

  • On the payments side OMG integrating USDt transfers and probably many CEX will adopt it quickly to save on gas and time

What features will loopring 4.0 have?