What’s Loopring Protocol?
Loopring is an open protocol for decentralized exchange on the Ethereum blockchain. Loopring intends to build up a decentralized non-asset custody application. Loopring is intended to drive interoperability among decentralized applications (DAPPs) that incorporate exchange functionality.
Can we create an exchange based on Loopring, how to make a profit?
Loopring is an open-sourced protocol, not an exchange. Any entity under this protocol can participate in order matching.
There are two types of Loopring exchange service fees from order matching system: transaction fee and “ ring-matching cost-saving” fee. In order to motivate order matching at the best price, “Ring-matching cost-saving“ fee will be the mainstream income.
Is Loopring only for Ethereum Blockchain?
Loopring requires: 1) tokens origin from ERC20 token standard 2) accept a smart contract on blockchain After deep consideration, our team decide to use Ether as the first token to implement on our platform due to Ether’s well development and popularity.
Nevertheless, Loopring foundation would also consider starting develop Loopring protocol on ETC, Qtum, Hyperledger, and ChinaLedger community.
Will Loopring issue token?
Loopring Foundation will issue its own token LPC based on ERC20 token standard. LPC will be used to pay a transaction fee, exchange deposit, and other service fees.
Is Loopring exchange safer than decentralized exchanges?
Loopring is born to solve the centralized exchanges’ risk problem. It has no custody request, no deposit request or account frozen risk. All transactions clearing and settlement are completed through a smart contract on the blockchain. Since Loopring has minimized the trading risk to zero.
Does Loopring take market price order?
Loopring will not take any market price order at this early stage. Because of Market Price Orders are prioritized by the placement time. However, due to Loopring’s decentralized mechanism and its attributes, the order will not prioritize by the time.
How to prevent ring-matching being stolen on the blockchain?
Loopring protocol can prevent ring-matching stolen. The exchange would post hash-rate and depository before sending orders to the community. Ring-order with depository has high priority in the line. However, blockchain depository is not a mandatory requirement in Loopring ecosystem.