Earn Up to 75-236% APY Liquidity Mining by Defi Dad

If you’ve checked gas prices on Ethereum lately, you understand exactly why we need Layer-2 (L2) solutions implemented with DeFi applications as soon as possible! When we talk about the Ethereum blockchain, Layer-1 refers to the the underlying main blockchain architecture, which is mainly where we find every application built as of today. 

When we talk about Layer-2, it is a collective term for solutions designed to help scale your application by handling transactions off the main Ethereum chain (Layer-1). Transaction speeds suffer when the network is busy which can make the user experience poor for many dapps, especially in DeFi. And as the Ethereum network gets busier, gas prices increase as transaction senders aim to outbid each other to get their transactions confirmed. This ultimately can make using Ethereum very expensive.

Thankfully, some brilliant minds have been working to address these network issues for many years, one of which is the team at Loopring.

Loopring is an Ethereum zkRollup protocol: an L2 scaling solution. Loopring's L2 increases transaction throughput and decreases cost, while maintaining complete Ethereum security guarantees. Loopring's zkRollup supports token transfers, orderbook exchanges, and AMM (automated market maker) exchanges.

In addition to being an open source Loopring Protocol, Loopring also built Loopring Exchange - an orderbook and AMM DEX, and Loopring Wallet - a mobile smart contract wallet. From the perspective of users, Loopring allows instant and gas-free transfers, trades, and liquidity provision.

Loopring users deposit their assets on-chain into a zkRollup smart contract  and users will later withdraw their assets from Loopring L2 to Ethereum L1.. Transactions occur off-chain, which enables remarkably fast transactions (2000 TPS) for fractions of a penny per trade in gas, which feels more like a

Become a Premium Wealth Mastery Subscriber to read the whole article + get weekly investment strategies on crypto, altcoins, NFTs and more

Already have an account? Click here to login.

Related Articles

Responses

You must be logged in to post a comment.