Loopring AMA with Matthew Finestone

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?

I think a big factor for a lot of these DeFi applications to generate value is their ability to incentivize liquidity. Is there anything in the pipeline for Loopring to promote more liquidity?

Composability is also a big factor with DeFi, taking ETH > lend to compound > borrow dia to provide liquidity with curve > curve lends and gives you an IOU > stake IOU for governance token.
point being I have seen a lot of different “paths” to use DeFi to create a yield. Loopring is not an option in these paths due to the composability issue. What is the team doing to bring more utility to Loopring so it can be a part of these DeFi building blocks?

I would like to know if Loopring has already integrated other layer 2 solutions. Since ZK has its own range of application, it has pros for specific purpose, but it also has some cons when encountering different situation in terms of efficiency, validity, and anti-malice, compared with other layer 2 solutions.

Now Loopring is using ZK to provide gas efficiency on operations on exchange and transfer. Is it possible to also integrate Validium or Optimistic Rollup to leverage more flexible operations, creating a layer2-on-layer2 scenario. In this way, DEX functions can be composed with other smart contract operations to fully release the potential power of money lego on Ethereum. I get some idea on how to create complicated structure design between different protocols if Loopring can take my advice to seek the potential in this direction. Also as a cryptographer, I’m looking forward to your guys’ hard working in this field! Thanks!

Thanks, everyone for joining us today! You can view live stream replay here :arrow_heading_down:

:moneybag: Now AMA winners time:

This question is awarded by Loopring team, $50 in LRC + VIP tier at loopring.io

This question is awarded by Defiprime team, $100 USDC.

Winners, please dm @sneg55 with your wallets so we can arrange reward payouts.

Thanks again and stay tuned for a next AMA.

Our next AMA with Lien Finance with $200 :moneybag:rewards