Loopring.io is launching its referral program today. Inviting friends to the exchange gives you up to 24% of their trading fees, and your friend receives up to 8% of their trading fee back. It’s as easy as getting your referral link, inviting friends, earning crypto.
Note: a previous version of this post specified that rewards were up to 60% of trading fees for referrer and 20% for referee. However, this took into account that protocol fees are always taken out of trading fees first. The Loopring Protocol fee is what is paid to LRC stakers, currently it is 6bps (0.06%). That fee does not go to the Loopring Exchange operators. Thus, all figures previously mentioned should be multiplied by 40% to arrive at the amount paid to referral rewards on a ‘top-line’ basis. We apologize if the ‘bottom-line’ basis (after protocol fee) was confusing, so that is why we adjust the way we express it. Please see “clarification” section at end of post for further detail.
The inviter (referrer) and the invitee (friend) share the trading fees of the friend as follows:
- If the referrer’s daily average LRC account balance is 5,000 LRC or more, they receive 24% of their friend’s trading fee, and their friend receives 8%.
- If the referrer’s daily average LRC account balance is less than 5,000 LRC, they receive 12% of their friend’s trading fee, and their friend receives 4%.
Note: the referrer’s and friend’s rewards are additive, so in the first case above for example, they take a combined 32% of the friend’s trading fee.
- On Loopring Exchange, generate your referral link from the right-side menu.
2. Invite friends to register on the exchange through your referral link, and when a friend completes a trade, you (and they) receive part of their trading fees. (Note: there is no KYC, ‘register’ just requires an Ethereum address).
3. Rewards are calculated daily, in the currency the trading fee was paid in.
For a look at the trading fees you will be earning your share of, see here.
- There is no limit to the number of invited friends per referrer;
- The rewards last for 3 months from time of invite. That is, whenever you invite a friend, you receive your part of their trading fees (and they receive their part) for 3 months from that point;
- Invitees can use the dedicated referral link to register or directly enter the referrer’s ID;
- Rewards are calculated and attributed daily at 11 AM UTC. Users see their reward balances accrue daily. Rewards are deposited to the user’s Exchange account each month. (Monthly rewards with a total value of $5 USD are deposited to your account; less than $5 USD value will be rolled over to the next month);
- If the referrer’s LRC position is initially 5,000 LRC or more, but subsequently goes lower, their reward rate will be reduced from 24% to 12%. However, the reward rate of the friend they invited will be ‘protected’, and the friend’s rate will remain unchanged, at 8%.
Please note that because a zkRollup posts pertinent data on-chain to inherit Ethereum security guarantees, sharing your referral code publicly (which contains your Exchange Account ID), means that information is public, and an Account ID is — by design — be mapped to an Ethereum address. So sharing a referral code means the associated Ethereum address is known. If you don’t want someone to know your Ethereum address, do not share your referral code.
Clarification on the protocol fee coming out of trading fees first
As mentioned above, when referring to trading fees, we must note that 6bps (0.06%) of any trade settled on any exchange built on the Loopring protocol is paid to LRC stakers. Specifically, it is paid to the feeVault. It is worth emphasizing this point, because it may have been miscommunicated in the first release as it relates to referral rewards. Certainly, we could have explained the details in a more clear way, so here it is. We apologize if this caused users any confusion at all. Any trading fees above this 6bps paid to the protocol is what the DEX operator is left with as their revenue. Default trading fees on Loopring.io is 10bps (for the taker only; makers have 0% fees). So, in a default case on the exchange, Loopring operator has 4bps (0.04%) of revenue to work with. So, when referring to “trading fees” for the referral reward program, please note it is 40% of trading fees that is eligible for rewards — the 60% goes to the protocol first. One more nuance to be perfectly clear: on the exchange, it is possible for some users to have VIP tiers, with lower fees. The highest VIP tier (with the lowest taker fees) is VIP4: which has taker fees of 6bps. When a trade is settled between a VIP4 taker and a maker, that means the Loopring operator has no margin: it pays the full trading fee to the protocol, and it has no revenue. In such a case, Loopring Exchange will still pay the 40% of the trading fees (meaning an out of pocket expense). So in this case, with 6bps of fees, it will still use 40% of this amount as the amount eligible to be paid to the referrer/referree. Again, apologies if this was communicated poorly, but we took for granted that people understood that protocol fees come out first.
Loopring reserves the right to make adjustments to the program at any time due to extenuating circumstances, such as the existence of fraudulent activity, or other factors.
Thanks, happy trading and referring! If you have any questions, please join our Discord and ask away.
Loopring is a protocol for building high-performance, non-custodial, orderbook exchanges on Ethereum using zkRollup. You can sign up for our Monthly Update, learn more at Loopring.org, or check out a live exchange at Loopring.io.
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