Loopring, an open protocol for building scalable, non-custodial orderbook exchanges, announced that it has granted 10 million LRC (around $350,000) from its Loopring Ecosystem Advancement Fund (LEAF) to WeDEX, a decentralized exchange founded by Loopring’s co-founder and former COO, Johnston Chen.
WeDEX will build their product on top of Loopring 3.0, the latest trading protocol with zkRollup.
“We are thrilled to have our former COO dare to pioneer the first DEX built atop our 3.0 protocol. It is a sign of confidence in Loopring’s DEX solution. We also congratulate WeDEX’s success in their first round of equity fundraising and look forward to their launch.”
– Daniel Wang, Loopring’s founder
Loopring’s grant will enable WeDEX to increase their LRC staking to lower their protocol fees and build up DEX ‘skin in the game’ — so WeDEX will have something at stake if their operations do not follow the protocol rules. This will prevent disruption of trading, until the zkSNARK provides the cryptographic finality for each batch.
“You can tell from the latest Ethereum DevCon that Zero-Knowledge Proof-based scalability solutions are becoming more popular. Loopring is one of the early adopters. WeDEX aims to become the first DEX using Loopring 3.0 to provide our users with not only security but also a smoother, CEX-like trading experience. We will also build features around the LRC token to contribute back to the Loopring ecosystem.”
– Loopring’s co-founder and former COO, Johnston Chen
Loopring 3.0 can settle up to 350 trades per second while guaranteeing the same level of security as the underlying Ethereum blockchain.
This is made possible by using a construction called zkRollup, and a feature called On-Chain Data Availability, or OCDA. If OCDA is disabled, Loopring throughput becomes much higher, but security reduces to that of the consortium which maintains said data.