The Loopring Smart Wallet contracts are getting a big upgrade. We’re also taking off some training wheels by updating our upgrade process — this will be the last manual upgrade users will have to perform. All future upgrades will be automatic with code verification and a time-lock delay. Everything you need to know to upgrade your wallet safely is here.
There has been a lot of talk in the Ethereum community lately about taking off the training wheels, and today, we are taking steps forward in doing just that.
We are making a major upgrade to our Smart Wallet contracts to improve the user experience of the Loopring Smart Wallet while interacting with the base layer 1 of Ethereum. This upgrade will help make LSW a full Ethereum Smart Wallet, allowing users to better use the multi-layer, multi-account functionality, while keeping all of their Ethereum assets as secure as possible.
With the roll out of these new contracts, we are also updating our upgrade process to help further our mission of eventually making Loopring a fully decentralized, community owned and run ecosystem.
Learn everything you need to know about the upgrade below.
What are the benefits of the upgrade
Here are the main feature changes to the contract for the upcoming upgrade:
- Resolves issues with ETH/WETH wrapping.
- Resolves various issues when interacting with L1 DApps— giving us the ability to upgrade the Ethereum L1 offering and experience in the wallet.
- Introduces a new proxy architecture that allows Loopring to automatically deploy future upgrades, enabling users to keep their wallet(s) up-to-date without incurring any fees. For users that have upgraded to contract version v2.3 or higher, the new architecture allows Loopring to upgrade the smart contract through a master copy.
Moving forward, standard upgrades will follow a well-defined procedure:
audit > pre-announcement > publication > (min)24-hour cooldown period > implementation
This process ensures robust security while granting users the option to withdraw assets prior to the upgrade if desired.
In the past, upgrades were done by having the user proxy data point to the latest smart wallet implementation code. This resulted in users having to pay high Ethereum gas fees for each smart contract upgrade. This is not a scalable approach if we want to remove friction as well as extra steps and fees for the end user.
This process is now being updated so that all future upgrades can instead be done through a Loopring Proxy.
The user’s smart wallet always points to a fixed address (the Loopring Proxy address), which then points to the real and latest implementation code of the smart wallet. This means that for each new upgrade, it only requires the Loopring Proxy to update the address of the implementation code to the latest version, resulting in a zero-cost upgrade (no gas fees) for each Loopring Smart Wallet user.
Who needs to upgrade
We encourage all current Smart Wallet users to upgrade their wallets if they want to stay up-to-date with all of the latest features coming to the wallet.
This will be the last manual upgrade that users will have to complete. After this upgrade, our new process will allow all future updates to be handled automatically from the users perspective and at no cost.
How to upgrade⚡️
Keep in mind this upgrade will incur an Ethereum L1 gas fee. As mentioned above, this will however be the last upgrade that users need to directly pay for, as future upgrades will be through paid on behalf of the user thanks to the Loopring Proxy.
How will future upgrades be handled?
All future smart wallet contract upgrades will be done using this new method.
Once the new smart contract is completed, we will have the code audited and then pre-announced to the community, with the publication of the verifiable code for users to check. There will be a minimum 24 hour cooldown period for this process, so that users have some time to check and verify. Once this cooldown period is completed, the upgrade will automatically go live for users. During this cooldown period, users will have the option to transfer their funds out of their wallet if they are not comfortable with the upgrade.
Community Nominated Security Council
We understand that not all users are able to read and verify code themselves. For this reason, we are also looking to nominate and vote in a new security council. 3–5 members of the community will have the chance to be nominated and voted in, using the Loopring DAO, to become the new Loopring Security Council.
This council will have the chance to have a private chat with the team where we can confer on future upgrades, go into detail and answer questions they think the community may want to know.
This council will also be very critical for any possible zero-day attacks in the future.
There may be a scenario in the future where there is a critical bug that needs urgent fixing. If we publicize this bug, it will make it so that it can be exploited further and potentially put users funds at risk.
In this scenario, we will need to share this information with the Security Council, and not publicize the actual verifiable code upgrades. The users will need to trust the council to verify the code on their behalf and endorse the upgrade without having the code public for them to check themselves.
While we hope this scenario never happens, it is important that we plan for these things. In the worst case scenario, users will always have the option to withdraw their funds before any upgrades go live, but we believe the added security layer of the Security Council can be a valuable asset to the ecosystem.
We will open up some channels to have community members nominate who they believe should be on this council and have an official vote through the Loopring DAO following these nominations to find the Top 3–5 to join the council.
What upgrades are coming for the Smart Wallet?
The next big upgrade coming to the Loopring Smart Wallet will be a big Account Abstraction upgrade, adding ERC 4337 compatibility to the LSW. This will be the beginning of a larger push to bring even more account abstraction (better user experience) to the wallet.
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.