Loopring operates as a layer 2 solution, enhancing Ethereum’s scalability without compromising security. It functions by processing parts of Ethereum transactions on its own network, much like a side road easing congestion on a busy highway.
With claims of increasing throughput 1,000 times and reducing transaction costs to less than a cent, Loopring is a promising solution.
In this article we will take you through what LRC token is how it powers Loopring chain and how you can trade in LRC crypto on Bitunix.
What is LRC Crypto?
Loopring is fundamentally conceived as a pioneering protocol designed to integrate and harmonize the distinct characteristics and functionalities of both centralized and decentralized cryptocurrency exchanges.
The primary objective of this ambitious endeavor is to harness the unique strengths and benefits inherent to each type of exchange while simultaneously addressing and mitigating the various inefficiencies and limitations traditionally associated with them.
By doing so, Loopring aspires to create a more efficient, effective, and versatile trading platform that leverages the best of both worlds in the ever-evolving landscape of digital currency exchange.
How Does Loopring Work: Blockchain and Security Infrastructure?
Loopring operates on the Ethereum and Neo blockchains, with future plans to support the Qtum blockchain. Each of these networks uses a distinct token: LRC for Ethereum, LRN for Neo, and the Qtum network will introduce the LRQ token upon launch.
These tokens are secured via the hash functions of their respective blockchain platforms: Ethereum’s Ethash for LRC, Neo’s SHA256 and RIPEMD160 for LRN, and Qtum’s proof-of-stake PoSv3 algorithm for LRQ.
What are The Unique Benefits of LRC Token and Its Technology?
zkRollups: The Fast Lane of Transactions: Loopring utilizes a Layer-2 scaling solution known as zkRollups to tackle Ethereum’s notorious network congestion. This innovative approach aggregates multiple transactions off-chain, bundles them, and then submits them to the Ethereum blockchain as a single transaction.
By doing so, Loopring significantly reduces the number of transactions that need to be settled on the Ethereum network. This not only speeds up trades but also lowers costs, offering an efficient alternative for users and alleviating the strain on the Ethereum network.
The term “zk” in zkRollups stands for “zero knowledge,” referring to the cryptographic proof Loopring uses to ensure the accuracy of off-chain transactions. Zero-knowledge proofs allow Loopring to demonstrate the validity of transactions without revealing the underlying data, akin to showing the solution to a math problem without disclosing the calculations.
Order Rings: Enhancing Liquidity and Price Discovery: Unlike other exchanges that require matching buy and sell orders within a trading pair, Loopring employs a circular trading system called order rings. Each order ring can include up to 16 orders, facilitating a loop where tokens can be exchanged without the need for a direct opposing order. This innovative approach enhances liquidity and improves the potential for price discovery, benefiting traders with more opportunities for optimal trades.
Who are The Founders of LRC Token?
Loopring was founded in 2017 by Daniel Wang, a software engineer with a Master’s degree in Computer Science from Arizona State University. Prior to creating Loopring, Wang worked as a Lead Software Engineer at Boston Scientific and as a Tech Lead and Senior Software Engineer at Google.
In August 2017, Loopring’s initial coin offering (ICO) raised $45 million. However, due to China’s regulatory changes, most of the funds were returned to participants, with the remainder allocated to protocol development by the Loopring Foundation, a non-profit based in Shanghai.
The transition from Loopring 2.0 to Loopring 3.0 in December 2019 brought about a remarkable 1000x increase in efficiency. Loopring also partnered with SwissBorg to integrate oracles that same month.
Loopring – LRC Crypto Price Performance and Technical Analysis
The RSI is around 39.40, indicating LRC is nearing oversold territory, suggesting a potential reversal or upward movement soon. Loopring (LRC) is trading at approximately $0.1108 with a market cap of around $138 million.
Loopring (LRC/USDT) on the weekly chart shows a significant downturn, with the price at 0.1109, down 16.18%. The VWAP is stable at 0.1157. The MACD indicator is negative, signaling bearish momentum, with the MACD line (-0.0081) below the signal line (-0.0149).
What Makes LRC Token and Loopring Unique?
Loopring’s native cryptocurrency, LRC, serves as the utility token of the network. It incentivizes liquidity providers, insurers, and DAO governors, granting them a voice in protocol governance. Operators must stake at least 250,000 LRC to run a DEX with on-chain data availability, while operating without this feature requires a 1 million LRC stake.
LRC is deflationary, as tokens from fees and penalized operators are burned, reducing the total supply over time. This mechanism can influence Loopring’s token price and market capitalization, adding an element of scarcity and potential appreciation.
LRC Crypto Tokenomics & LRC DAO
Loopring earns protocol fees from transaction activities on its L2. Initially, 20% of the L2 transaction fee is allocated as the protocol fee. Current settings imply a fee of 0.02% for Automated Market Maker (AMM) swaps, 0.008% to 0.046% for order book trades, and $0.01 for transfers.
These fees are split among three groups: liquidity providers (80%), insurers (10%), and the Loopring DAO (10%). Fees collected in tokens other than LRC or ETH are converted to these currencies, and all distributions are made in LRC or ETH. Fees are paid monthly, and any changes will be governed by the Loopring DAO.
Previously, protocol fees went to LRC stakers who locked tokens for 90 days. Now, the model rewards LRC holders for productively using their assets for the platform’s benefit. 80% to liquidity providers on Loopring order books and AMM, with at least half going to LRC-related liquidity. 10% to insurers, who contribute to a safety insurance fund. 10% to the Loopring DAO, which decides fund use, such as buybacks, liquidity incentives, or grants.
How to Buy/ Sell $LRC ?
To buy $LRC, you need to create an account on Bitunix. If you are already a registered user, you can skip this step.
Next, you need to deposit USDT in your Bitunix account. Simply head to your profile and click on the wallet icon. Next, click on deposit and follow the steps to deposit crypto in your account.
To trade in LRC/USDT, navigate to the main menu and click on the Markets tab and select ‘Marketplace’.
Next, click on the search icon and look for LRC.
Next, click on Trade to open the trading window for LRC/USDT.
You can choose to place a limit or a market order for buying and selling LRC tokens.
Watch our detailed tutorial on How to use Crypto Limit and Market Orders on Bitunix Futures?
How to Trade in LRC Token Futures?
To trade in LRC/USDT on Bitunix, head over to the Markets Tab and click on Marketplace from the drop down menu.
Next, click on trade to open the LRC/USDT futures pair trading panel.
Now, you can place a long or short order on LRC/IUSDT futures.
How to Buy Crypto On Bitunix?
You can buy USDT through our on ramp crypto partners like Moonpay, AlchemyPay and Volet. Bitunix also offers p2p crypto trading. Following are the steps to buy USDT through a third party provider.
Navigate to Buy Crypto in the main navigation menu. Click on Buy Crypto tab and choose Third Party from the drop down menu.
Next, choose your currency, crypto and the amount you wish to spend.
Now, choose your preferred payment method and click on Buy. Next, verify the payment with your bank or payment gateway (Bank or payment gateway like Apple Pay) Once done, the crypto will be reflected in your Bitunix account.
How to Buy/ Sell USDT using P2P Trading on Bitunix?
Bitunix has recently added P2P trading to make your crypto investing journey a breeze. Follow the following steps to place a P2P USDT order.
First, head over to the Buy Crypto tab in the main menu. Now, click on P2P Trading from the drop down menu.
Next, choose the amount you wish to spend and the preferred method of payment. Once done, the system matches your order requirements with the verified merchants. Now, you can choose the merchant you wish to buy your USDT from.
Next, click on Buy and make the payment. Once done, share a screenshot of the payment and click on I have Paid. Once the seller has received the amount, he/she will release the funds.
How to Deposit Crypto on Bitunix?
If you already own crypto and wish to deposit in your Bitunix account simply follow the steps below
First, navigate to the main menu and click on the wallet icon. Now, choose spot account from the drop down menu.
Next, click on Deposit from the menu to your left.
Next, choose crypto and network you wish to deposit through.
This will generate your deposit address that you need to send your crypto to. Double, triple check the details before you send your crypto to the deposit address. Make sure to never manually copy the address as it might lead you to miss out any characters.
