Throughput and trade cost rank among the biggest limitations decentralized exchanges face compared to their centralized counterparts, and have hampered the growth in decentralized exchanges. This technological breakthrough by Loopring will mark a massive step forward in the decentralized exchange space and take decentralized exchanges to the level where they can offer a similar trade throughput and better experience than current centralized exchanges while also providing significantly greater security.

Loopring’s token (LRC)

Loopring’s protocol is powered by their token LRC. Trades conducted on the Loopring Protocol result in fees being paid behind the scenes in LRC. All LRC holders can stake LRC to earn part of the protocol fees paid by all exchanges built on top of Loopring — 70% of the fees are rewarded to stakers, 20% will be used to fund the Loopring DAO, and the remaining 10% will be burned.

As a result of these token mechanisms, every token holder or believer in Loopring benefits when trades are conducted on exchanges built on Loopring. Trading LRC on centralized exchanges such as Binance result in traders losing out on the deflationary effect of tokens being burnt as well as a rebate in the form of staking rewards.

So where is the best place to trade LRC?

For those looking for a smooth and easy Loopring decentralized exchange (DEX) trading experience a good place to start would be Dolomite. Dolomite is the first major DEX to launch on Loopring and lets you trade LRC right from your wallet with no deposits. It also offers an easy built-in DEX wallet manager that removes many of the confusing roadblocks of DEX trading, such as wrapping ETH, approving tokens, and paying ETH transaction fees. Every trade on Dolomite burns LRC and rewards LRC holders that have staked their LRC.

With the launch of Loopring version 3 we’ll be seeing more DEXs launching that are built on the Loopring Protocol as well as more assets traded on these exchanges. By building off of Loopring’s technology this next wave of decentralized exchanges will be able to provide traders with better security, speed, and experience.