Red packets, or red envelopes, are a traditional Chinese gift-giving custom on special occasions, celebrations, and the Chinese New Year. Giving red envelopes filled with cash to friends, family, and coworkers, in hopes of blessings and good fortune. The colour red is associated with good luck, and the cash is, well, cash. Except for now it can be Ethereum-based assets too!
Users of the Loopring Wallet have probably seen this feature on their mobile app in the past few weeks. It allows you to send and receive red packets privately to friends and family, or publicly — to anyone on the Loopring wallet. It is currently availably only in the Loopring mobile wallet, not the web platform.
You can specify which token and how much to send, to how many people it is to be sent/split, and to whom. It is a great, easy way to spread some joy, to someone special, or an entire community.
You can send 3 types of red packets:
1. Relay red packet. Specify a total amount, and a number of people. Recipients get a random share of the packet amount. If they share it with others via QR code, they get half the amount that next person receives as well.
e.g.: I send a red packet for 1000 LRC, to be split among 10 recipients. You find one, open it up. You receive 83.5 LRC (random amount). You click share, which generates a new QR code for you, and you share it on Twitter. Someone opens it, it’s for 95 LRC (random amount). They receive 47.5 LRC, you receive 47.5 LRC.
2. Lucky red packet. Specify a total amount, and a number of people. Each person gets a random share of the total packet amount. The distribution is randomized.
e.g.: 1000 LRC, 10 recipients. You find one, open it up. You receive 83.5 LRC (random amount). Someone else opens it up and receives 125 LRC. And so on.
3. Normal red packet. Specify a total amount, and a number of people. Each person gets the same share of the total packet amount.
e.g.: 1000 LRC, 10 recipients. You find one, open it up. You receive 100 (1000/10). Someone else opens it up and receives 100 LRC. And so on.
Where these Red Packet transactions occur
Red packet amounts are accounted for in a centralized manner, in a special red packet sub account balance. This can be withdrawn to your Loopring L2 account when you wish, for a very small fee (a few cents). It’s important to note these differences though: Loopring zkRollup gives you complete Ethereum-level security guarantees. When your assets are in your Loopring L2 account, they are yours and only yours, no one can get in between you and your funds, not us, not ever. On the red packet system, however, it is outside of the zkRollup — it is a ‘normal’ centralized database, with balances attributed to your account.
So that’s it. Have fun receiving or sending some love, good luck, and crypto to your friends, community, or even strangers! You can download the Loopring mobile wallet here to start using the red packet feature.
Note: to receive red packets, it would either be sent to you directly in app by wallet name, or sent to you directly or indirectly via QR code on some other medium (like Twitter), or, just put out there to the public within the Loopring app, open for anyone to snag it.
Loopring is an Ethereum zkRollup protocol for scalable, secure exchanges & payments. Loopring builds non-custodial, high-performance products atop our Layer-2, including the Loopring Wallet — a mobile Ethereum smart wallet, and the Loopring Exchange — an L2 orderbook and AMM DEX. To learn more, you can sign up for our Monthly Update or see Loopring.org.