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Loopring Review 2024

Our veredict

Loopring is a decentralized exchange protocol built on Ethereum that utilizes zero-knowledge rollups (zkRollups) to achieve high throughput and low transaction costs. It offers a secure and efficient platform for trading cryptocurrencies by moving most computations off-chain while maintaining the security of on-chain data. Loopring stands out for its ability to handle up to 2,025 trades per second, significantly surpassing the capabilities of most decentralized exchanges, which typically handle only a few trades per second. This makes Loopring a viable option for traders looking for the speed and cost-effectiveness typically associated with centralized exchanges but with the added security of decentralization.

However, Loopring has some limitations. Users must deposit their assets into a smart contract to make them available for trading, which can be a barrier for some. Additionally, while the platform offers high security and efficiency, it can be complex for beginners due to its reliance on advanced cryptographic techniques and the need to manage a Web 3.0 wallet like MetaMask. Despite these challenges, Loopring is well-suited for experienced traders looking for a decentralized solution with high performance and low fees.

Pros

High Throughput Loopring can handle up to 2,025 trades per second, which is significantly higher than most decentralized exchanges, providing users with fast and efficient trading.
Low Transaction Fees The platform's use of zero-knowledge rollups ensures that transaction fees are nearly zero, making it cost-effective for traders to execute multiple trades without worrying about high costs.
Strong Security Loopring employs zkRollups and Merkle proofs to ensure that transactions and user funds are secure, even in the event of a platform failure, providing users with peace of mind.

Cons

Asset Deposits Required Users must deposit their assets into a smart contract to make them available for trading, which can be a barrier for some, as it requires an initial commitment of funds.
Limited to Ethereum-based Assets Loopring primarily supports ERC-20 tokens, which means that traders looking to trade assets from other blockchains may find the platform limiting.

3,5

Threenvest Score

Network

Ethereum

Fees

0.20%

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Why choose Loopring?

Choosing Loopring as your decentralized exchange offers several compelling advantages. Firstly, its high throughput of up to 2,025 trades per second and near-zero transaction fees make it an efficient choice for active traders. The zkRollups technology significantly reduces costs and increases the speed of transactions compared to traditional DEXs, making it comparable to centralized exchanges in performance.

Secondly, Loopring ensures robust security through its use of zkRollups and Merkle proofs. These technologies ensure that users can always retrieve their funds, even in the event of a platform failure. This high level of security, combined with the decentralized nature of the exchange, reduces the risks associated with centralized exchanges, such as hacking and fraud.

Additionally, Loopring offers a versatile trading experience by supporting both automated market maker (AMM) systems and traditional order book trading. This flexibility caters to a wide range of trading strategies and preferences. Moreover, the platform’s integration with Ethereum ensures that it supports a broad spectrum of ERC-20 tokens, providing users with numerous trading options and liquidity pools.

Xavier Tarrasó

EIP and Cryptocurrency Investor

As an expert on our site, I highly recommend Loopring for its unique combination of security, efficiency, and versatility. The platform’s use of zkRollups ensures high transaction throughput and low fees, making it an excellent choice for active traders. Additionally, its robust security measures, including Merkle proofs, provide peace of mind by ensuring user funds are always retrievable. Whether you prefer automated market makers or traditional order book trading, Loopring caters to various trading strategies and offers extensive support for Ethereum-based assets.

How do we review crypto exchanges?

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We collect data directly from exchanges through detailed questionnaires and conduct first-hand testing and observations during crypto exchange demonstrations. Questionnaire responses, combined with demonstrations and hands-on research from our experts, feed into our proprietary evaluation process that scores each provider’s performance on more than 15 factors. The end result produces star ratings ranging from poor (one star) to excellent (five stars).

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Risk Disclaimer

Investing in cryptocurrencies is very risky, you should only invest the money you are willing to lose. Also you should not expect to be protected if something goes wrong.

Neither Threenvest, nor the author, are recommending you to invest with this article.

Alejandro Borja Fuentes

Economist | Cryptocurrency exchange analyst

The author of the review

Alejandro Borja is an accomplished economist with a distinguished career spanning various facets of the financial industry. His academic journey began with a degree in Economics, laying the foundation for his deep understanding of financial markets.

Over the years, Alejandro has honed his skills by working with some of the largest financial media outlets, analyzing and reporting on economic trends and investment opportunities. His expertise in financial analysis has made him a respected voice in the economic community.