DeFi’s Final Frontier: Uncompromised Convenience

https://medium.loopring.io/defis-final-frontier-uncompromised-convenience-4acb6628eee6?source=rss----5e4ab2ca952b---4

Guest Post, written by Invoid

Status Quo: Profunde Urso

Bear markets are a blessing in disguise for the young crypto market. It may get muddy as all the projects face scrutiny to prove that they deserve to exist. And it may get dramatic as some of them break and some of them live to see the promised land — adoption.

Adoption always has been a big word for crypto. Well, what does it mean? It means more and more people use crypto in their daily life. Alright, how are we doing right now? Based on the tripleA’s research, there are over 420 million crypto users worldwide which equals 4.2% of the world’s population. How about DeFi users, it is essential for crypto right? Sadly, not really. According to Finbold, DeFi has around 7 million participants. So, only 1 of 60 crypto users dabble in DeFi. Let’s not do the percentage of the worldwide population on this one.

GM. Any News Today?

Crypto as a whole came a long way from the sheet-keeping, Blackberry-mining, pizza-overpaying days. It doesn’t have bloated language like stocks so the first-timer can easily buy their favorite animal-themed token without giving it a second thought. Which it should be, users must have the ability to reach their desired assets without interference. Convenience is the goal and the greatest asset in the way of adoption. And we have it! But let me ask you this, at what point does this convenience become a barrier?

Centralized exchanges offer it all! Buy crypto with your credit card? Check! Stake on the spot? Check! Great liquidity? Check! Easy on/off ramps? Check! Many reassurances that extend from basketball arena names to top football team jersey sponsorships? Check! Super Bowl ads that feature famous comedians or Martians, even funny QR codes? Check! Centralized exchanges are convenient, centralized exchanges are awesome. Until they are not, of course.

The imploding of CEXs has happened many times already. At this point, we may have to accept that it’s a feature, not a bug. But why does it keep happening? Well, it is because crypto and centralization are not compatible. In fact, it is designed to NOT be compatible. I am not talking about shady actors who mingle with your funds, they are bound to exist in every industry, but the problem is more fundamental.

Like Ketchup on Spaghetti: You May Do It, But Should You Though?

One of the first great catalysts for crypto is accepted as the Cyprus event. When the country faced a financial crisis, people realized their government had the right to take their money and use them. People didn’t like it and in an act of rightful defiance, they turned to the assets that are not reachable by their leaders. One of those assets was Bitcoin. This was an adoption event that happened naturally and it was due to Bitcoin’s nature of decentralized and independent nature. I believe we must never lose that point. We need decentralization in crypto not because centralized exchanges are all corrupt, we need it because that is why it EXISTS.

Using centralized crypto exchanges is like breaking your walls to open a big hole when you already had a perfectly fine door. Yes, more people will get in and get in quickly through your new hole in the wall; but now they are exposed to all kinds of risks because there is a hole in the wall!

“Decentralization, self custody, not your keys not your crypto, and trustless” are among the top crypto “token words”. They are important concepts, important enough to birth Bitcoin, one of the biggest inventions in financial history. But somehow these concepts are not important enough to ditch the centralized exchanges and set sail to DeFi. Why? At this point, we circle back to the word of the day, convenience.

Which I think gives a clear pathway for DeFi to take its rightful place:

  • Be convenient for the user.
  • Be uncompromisingly decentralized.
  • Don’t expect users to make sacrifices; become not an alternative to centralized exchanges, be better than them.

My god, that’s Loopring’s music!

Loopring Enters the Ring: One SuperApp to Rule Them All

Now, let us leave the super-stonk-fueled mania phase and 10×0.25 equations aside for a second. As the first zk-rollup of Ethereum, Loopring has been alive and kicking for many bear market cycles already. There are many layers of this Layer-2, and all of them are stacked with one goal in mind, to become the most convenient, decentralized place for DeFi.

Well, how?

Convenience starts with UI and UX. It should be both invisible and present at all times. It should guide users but also let them explore. It should be informative without holding their hands. And, for the love of Satoshi, be mobile!

According to Oberlo’s research, 56.86% of the web traffic came through mobile phones in 2023. Trends show that mobile usage will continue to rise in the coming years, so there is no doubt that DeFi must be mobile-focused as well. Luckily, Loopring has a mobile wallet that is on its way to becoming a super-app with its many riches.

What Does It Do, Loopring?

For someone who just wants to keep their assets in a decentralized place, Loopring offers a wallet with social recovery, for which you don’t need seed phrases.

For someone who just wants to trade, Loopring offers a decentralized exchange that lets traders earn protocol fees just by trading. Also, Block Trade taps into centralized exchange liquidity without compromising decentralization.

Do you want to provide liquidity? Go ahead. Mint/keep/sell NFTs? Loopring’s got you. Use it as an Ethereum Wallet? Easy. Want to stake ETH? Do it with low fees! Dual Investment? Sure, buddy! Multi-chain? On the horizon. Margin trading and leverage trading? Stay tuned, my friend.

With Loopring, you can build your NFT marketplace and trade for PEPE all the same. And you know what, that’s well damn convenient.

And the best part? It is decentralized to the bone!

As Loopring Wallet/Super-app keeps adding to its impressive capabilities, the goal of becoming the perfect door for DeFi looks closer and closer. When Loopring super-app reaches critical mass and offers everything a centralized exchange does while being decentralized and self-custody oriented -which it is pretty close to already- why on earth would you still stick to your CEX?

DeFi adoption will accelerate with individual acts of defiance. And when it happens, Loopring will be the spearhead.

About Loopring

Loopring is an Ethereum Layer 2 zkRollup protocol for scalable, secure DeFi and NFT applications. Loopring builds non-custodial, high-performance products atop our L2, including the Loopring Wallet — a mobile Ethereum smart wallet, and the Loopring L2 web app — an L2 orderbook and AMM DEX. To learn more, follow us on Medium or see Loopring.org.

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DeFi’s Final Frontier: Uncompromised Convenience was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Multi-Wallet Support is Live!

https://medium.loopring.io/multi-wallet-support-is-live-b2ec34f84fd2?source=rss----5e4ab2ca952b---4

The days of restricting yourself to a single wallet within your Loopring app are over. Thanks to the new multi-wallet support, you can now create and manage multiple wallet addresses right from within Loopring’s mobile smart wallet app.

This new functionality offers a range of benefits for users, including the ability to easily cycle through multiple addresses and identities, each one safeguarded by its own guardians set and smart contract.

One of the key advantages of having multi-wallet support is the ability to separate account activities. With this feature, users can keep their gaming, DeFi, and business activities completely separate, making it easier to track transactions and manage finances.

Additionally, maintaining digital pseudonymity is now easier than ever. Users can keep their known and pseudonymized wallets separate, ensuring their digital property, transactional history, and voting remains anonymous if desired.

Create a new Wallet

Creating a new wallet address is a simple process. Simply tap on the ‘Wallet Settings’ icon. From there, you can create a new wallet and customize its security parameters as to your liking. In an upcoming release, you will have the option to personalize your wallet with a unique name and avatar.

Follow this guide for a tutorial on multi-wallet creation.

Recover or Import an Existing Wallet

If you lose your wallet or have your Loopring Wallet on another phone, now you have the option to recover or import an existing wallet directly onto your Loopring app.

Please refer to the following guides for a step-by-step tutorial on how to migrate and recover your existing Loopring Wallets.

Multi-Network Support Coming

With multi-wallet support now available, you can create as many accounts with your smart contract wallet as you desire. And that’s not all — we have just introduced the first phase of our multi-network support by adding Taiko testnet. We’re continuously working to improve your experience, and plan to include more networks in the future.

About Loopring

Loopring is an Ethereum Layer 2 zkRollup protocol for scalable, secure DeFi and NFT applications. Loopring builds non-custodial, high-performance products atop our L2, including the Loopring Wallet — a mobile Ethereum smart wallet, and the Loopring L2 web app — an L2 orderbook and AMM DEX. To learn more, follow us on Medium or see Loopring.org.

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Multi-Wallet Support is Live! was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

LRC Staking is Live!

https://medium.loopring.io/lrc-staking-is-live-3b02ba20bd42

We are excited to announce that LRC Staking is now available on Loopring. As a highly requested feature within our Layer-2 community, staking allows users to earn rewards by locking up their LRC tokens.

In December 2022, our community passed a vote via Snapshot, with an overwhelming 98% in favor of introducing staking for protocol fee rewards. As a result, 45% of protocol fees will now be allocated for anyone to stake and earn rewards. We believe this will incentivize more users to participate in the Loopring ecosystem and strengthen our community’s growth.

How to stake

Staking is now available via our web app or via our iOS and Android mobile app, Loopring Wallet. Simply enter the amount of LRC to stake and start reaping the rewards.

The LRC staking mechanism offers users the flexibility to stake or unstake their tokens at any time. However, to be eligible for staking rewards, users must lock their LRC tokens for a period of 90 days.

Once the 90-day lockup period has ended, stakers can claim their rewards at any time. If a staker decides to unstake their LRC tokens before the 90-day lockup period has concluded, they will not receive any accumulated rewards. Instead, the unclaimed rewards will be added back into the distribution pool for the following day.

Staking rewards are calculated on a daily basis, based on the previous day’s protocol fee amount, and are distributed pro rata among stakers according to their contribution. Stakers can monitor their accumulated rewards on their dashboard.

LRC Staking rewards starts on April 1, 2023. To ensure you don’t miss out on the opportunity to earn from the very beginning, stake your LRC now and maximize your rewards.

A word on protocol fee rewards

Protocol fee rewards are an essential component of the Loopring ecosystem. These fees represent a percentage of the trading volume flowing through the Loopring protocol and are applied proportionally to any token in a trade, swap, or transfer. These fees are completely abstracted from end-users.

In addition to Protocol fees, L2 network fees are normal style fees charged to the user. These fees are paid to the Loopring operator, and contribute to the protocol fee, which is shared among ecosystem participants who support the network. For swaps, trades, and transfers, the protocol fee is set at 20% of the network fee, while NFT trading carries a 10% protocol fee.

All protocol fees are disbursed in LRC, and any fees accrued in tokens other than LRC are sold on the L2 network for LRC. This way, Loopring’s native token will always have a claim on every DeFi and NFT trade ensuring its consistent presence in the ecosystem.

You can read more about how the protocol fee is broken down for the various transaction types.

Changes to the Protocol Fee distribution

Following the approval of the DAO staking proposal, there have been significant changes to the distribution of protocol fees.

Before

  • 80% to liquidity providers (LPs), with 64% going to AMM LPs and 16% being reserved for order book liquidity mining campaigns.
  • 10% to the Loopring insurance fund
  • 10% to the Loopring DAO.

After

  • 45% to LPs in qualifying AMM pools
  • 45% to LRC stakers.
  • 10% to the Loopring DAO.

These changes represent a significant shift in the allocation of fees, and their impact on the Loopring ecosystem will continue to be voted on by the DAO going forward.

Deploying Order book Mining Rewards

Order book mining was voted to no longer receive protocol fee rewards. Previously, 16% of the protocol fees were reserved for order book liquidity mining campaigns, resulting in a sum of 225,697.21 LRC. In the coming months will see the introduction of new features to our order book, and these funds will be used to incentivize liquidity provision for these features.

Changes to Allocation of Insurance Fund

As allocation of protocol fees has undergone a change, the insurance fund will no longer receive any funds. The insurance fund has accumulated 171,259.95 LRC, and the community will soon vote on how to allocate these funds.

Join the Loopring Discord, and Loopring’s Snapshot space for official voting updates.

Moving forward

With LRC staking, Loopring offers users an innovative way to engage with and profit from the growth of the ecosystem. The recent changes to the protocol fee distribution reflect the community’s feedback, and we are excited to see how these changes will impact the growth of Loopring. As adoption and activity on the rollup continue to grow, participants are positioned to enjoy greater benefits.

Happy Staking!

About Loopring

Loopring is an Ethereum Layer 2 zkRollup protocol for scalable, secure DeFi and NFT applications. Loopring builds non-custodial, high-performance products atop our L2, including the Loopring Wallet — a mobile Ethereum smart wallet, and the Loopring L2 web app — an L2 orderbook and AMM DEX. To learn more, follow us on Medium or see Loopring.org.

TwitterDiscordRedditGitHubDocs ⭑ YouTube


LRC Staking is Live! was originally published in Loopring Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.