What is Loopring (LRC)?

In 2024, Loopring processed millions of Ethereum transactions using zero-knowledge technology—but major changes are coming in 2025. Whether you're a current LRC holder, DeFi user, or just exploring Ethereum Layer 2s, understanding Loopring is crucial. This guide explains what Loopring is, how its zkRollup Layer 2 works, why it's sunsetting core products, and actionable steps you must take before closures. You'll learn about the technology powering Loopring, security considerations, cost savings, the 2025 product transition, and how to prepare your assets. We'll also show how OKX remains an industry leader for Layer 2 trading and bridging, supporting your next steps with Loopring and beyond.

What Is Loopring? Introduction to zkRollup Layer 2

Loopring is an open-source Layer 2 protocol designed to make Ethereum faster and cheaper using advanced zero-knowledge rollups (zkRollups). At its core, Loopring is three things: a technical protocol on Ethereum, the $LRC token (used for utility and governance), and a set of applications, including a decentralized exchange (DEX) and popular crypto wallet.

Loopring leverages zkRollup technology to bundle thousands of Ethereum transactions off-chain, calculate results with zero-knowledge proofs, and submit quick, cheap summaries to the Ethereum mainnet. This radically improves scalability while minimizing fees, making DeFi and token swaps practical for everyday users.

Loopring fits into the broader Ethereum Layer 2 landscape, helping users avoid congested Layer 1 (L1) networks. It’s especially appealing for traders, NFT enthusiasts, and anyone wanting fast, low-cost blockchain interactions.

💡 Pro Tip: Curious about other Layer 2s? Read our Ethereum Layer 2 guide for a full technology overview.

• Loopring price today
• How to buy Loopring LRC

How zkRollup Technology Works

zkRollups rely on zero-knowledge proofs—a cryptographic method—to prove transaction validity without revealing personal data. Loopring processes transactions off-chain, efficiently bundles them together, and periodically posts these batches to Ethereum. Each batch is accompanied by a succinct proof showing all transactions are legitimate, without the mainnet needing to recalculate them.

This dramatically reduces congestion and costs: users enjoy near-instant trades, while only summary data (not entire transactions) is stored on-chain. Security is maintained, as all proofs must pass Ethereum's rigorous validation.

Loopring Protocol & LRC Token

Here’s a common source of confusion: “Loopring” refers to multiple things.

• Protocol: The set of open-source smart contracts and software running on Ethereum.
• LRC Token: Loopring's native token, used for fees, rewards, and (once) governance.
• Loopring DEX/App: The decentralized application and interface allowing users to trade, swap, and manage digital assets.
• Loopring Wallet: A self-custodial, smart contract wallet (sunsetting in 2025).

💡 Pro Tip: OKX supports a broad range of Layer 2 tokens, including $LRC, making it simple to explore new protocols as the ecosystem evolves.

Project Background: Team, History, and Whitepaper

Loopring was founded in 2017 by Daniel Wang, a software engineer and entrepreneur based in China. The project's vision centered on decentralized trading that combined the strengths of CEXs and DEXs—delivering high efficiency without sacrificing self-custody.

The original Loopring whitepaper, released in 2017, outlined an order-matching model, decentralized settlement, and plans for zkRollup scalability. Key milestones include:

• 2019: Mainnet protocol launch
• 2020: Deployment of zkRollup Layer 2 on Ethereum
• 2021-2022: Loopring Wallet and Red Packets rollout

Community governance played a big role via $LRC, though participation dwindled as core products matured. Today, the project is transitioning out of active development, driven by shifting priorities and security needs.

Security: How Safe Is Loopring? Non-Custodial Features & Transparency

Loopring’s security was built around a non-custodial design—giving users direct control of private keys and assets via smart contracts. Thanks to zkRollup cryptography, users’ funds remained secure unless compromised by a bug or, more recently, wallet shutdowns. Regular audits strengthened user trust, though incidents did arise.

What’s different about Loopring? Unlike many CEXs, assets are only moved when users sign with their wallet. Even Loopring’s smart wallet required user approval for withdrawals and trades.

In 2023-2024, however, high-profile security incidents impacted wallet holders. The upcoming shutdown highlights the importance of transparency, insurance, and proactive risk management.

OKX adopts a transparent proof-of-reserves system and maintains a robust insurance fund, consistently ranking among the most transparent global exchanges. This gives users extra peace of mind—especially when moving funds amid Layer 2 transitions.

Loopring Wallet Security Incidents

In mid-2023 and early 2024, Loopring’s smart wallet experienced targeted attacks exploiting wallet guardian recovery features. Hackers bypassed 2FA and guardian approvals, resulting in several high-value wallet drains. The community’s trust suffered, and Loopring responded by patching smart contract vulnerabilities, offering user compensation, and ramping up incident transparency.

Although isolated, these events paved the way for the 2025 wallet sunset and product pivot, underscoring the difficulty of balancing convenience, automation, and pure self-custody.

How To Stay Safe After Product Changes

If you use the Loopring wallet or DEX, take these steps:

• Withdraw all assets well before official sunset deadlines.
• Double-check smart contract interaction addresses to avoid phishing.
• Consider alternative wallets (like OKX wallet), which offer battle-tested self-custody and multi-chain support.
• Monitor official channels for last-minute updates and support contact information.

💡 Pro Tip: Always enable 2FA wherever possible and double-confirm transaction details during Layer 2 transitions.

Fees & Scalability: How Loopring Makes Ethereum Cheaper

A primary draw of Loopring has always been its promise of near-zero fees. Ethereum’s Layer 1 network can charge $5-$80+ per transaction during congestion, making everyday trading prohibitively expensive. Loopring’s zkRollup Layer 2 aggregates 100s–1000s of user trades, paying a fraction of L1 costs and passing the savings back to users.

Typical Loopring DEX trades cost under $0.10—often even less. Users benefit from rapid settlement, thanks to off-chain matching and on-chain finality. This makes DeFi, NFT trades, and airdrops affordable, accessible, and fast.

OKX also supports a growing number of Layer 2 tokens and markets, letting traders enjoy low-fee environments with the reliability of a global exchange.

Typical Gas Fees: Layer 1 vs Loopring Layer 2

By leveraging zkRollups, Loopring can make Ethereum more accessible and cost-effective. No surprise that much DeFi innovation now launches first on Layer 2.

Loopring in the Market: LRC Token Price, Exchanges & Performance

$LRC is Loopring’s native token. It’s used for trading fees, future governance (when active), and once secured specific protocol functions. As of May 2024, LRC trades between $0.20 and $0.30 with a circulating supply around 1.3 billion and a market cap below $350 million.

You can buy, sell, or trade LRC on leading exchanges:

• CEXs: OKX, Binance, Coinbase
• DEXs: Uniswap, 1Inch (via Layer 1 and select L2s)

OKX stands out for regulated LRC trading, deep liquidity, and advanced order types—making it a top destination for LRC traders. Daily LRC volumes average $10M–$50M on major markets, with strong support for both spot and derivative products.

How to Use Loopring: Wallet, Red Packets, NFTs, and AMM Guide

Loopring gained adoption through its smart contract wallet, Red Packet airdrops, NFT marketplace, and AMM (automated market-maker) DEX—all accessible from a mobile app and web dashboard. However, with the 2025 sunset announcement, some features will be restricted.

Here’s how to get started—and what to expect moving forward.

Loopring Wallet: Features & Step-by-Step

1. Download App & Create Account: Set up a Loopring wallet via the official app (until sunset). Register, back up your recovery phrase, and (optionally) configure guardians for account recovery.
2. Deposit Funds: Transfer ETH, USDT, or tokens from Layer 1 (Ethereum) or other supported networks into your Loopring address.
3. Layer 2 Transfers: Move funds into Loopring Layer 2 for low-fee swaps, NFT trades, and Red Packet gifts. Use the app’s deposit flow to bridge assets.
4. Swap, Provide Liquidity, Buy NFTs: Use the built-in DEX, AMM pools, and NFT marketplace. Trades finalize in seconds with sub-$0.10 fees.
5. Withdraw to L1 or External Wallets: Bridge assets back to Ethereum mainnet or move to wallets like OKX wallet as sunset dates near.

What Are Red Packets and How to Send One?

Red Packets are blockchain “gift cards”—you can send crypto to friends as a randomized or fixed amount, redeemed via a special link or QR code. They’re a fun way to distribute airdrops, event giveaways, or simply tip others with no KYC required.

Example: Alice creates a 0.1 ETH Red Packet in her Loopring wallet. She shares the link, and Bob claims the ETH in seconds—no fees, no manual entry.

After July 2025, these features may be limited or deprecated, so begin exploring alternatives like the OKX wallet for Layer 2 gifts and airdrops.

What Happens After Loopring’s DeFi Shutdown? Sunset Guidance (2025)

Loopring has announced a phased shutdown of its DeFi/smart wallet products by July 2025 due to security and resource challenges. Here’s what you need to know to keep your assets safe:

• Timeline & Deadlines: Most wallet/DApp operations will cease by July 31, 2025. Exact cut-off dates for deposits, Red Packets, AMMs, and NFT marketplace will be communicated via official channels.
• Withdrawing Assets: BEFORE closure, open your Loopring app and withdraw all funds to Ethereum mainnet (L1) or another Layer 2 (where supported). Choose a high-security address (hardware wallet or major CEX like OKX).
• Bridging to OKX or CEX: For continuity, consider swapping LRC or USDT for major coins, then deposit to your OKX wallet or exchange account for safekeeping.
• Missed Deadline? If you cannot access your assets in time, follow Loopring’s support updates—there may be extended or manual recovery processes, but expect delays and higher fees.

💡 Pro Tip: Begin migrating assets before the final weeks to avoid network congestion and rushed mistakes.

Loopring vs Other Layer2/zkRollup Protocols: Competitive Comparison

With the rise of Layer 2, several zkRollup platforms now compete for users:

OKX supports trading and bridging across all major Layer 2 protocols, helping users adapt as products rise, merge, or sunset.

Frequently Asked Questions

Is Loopring safe after the wallet shutdown?

Loopring's core protocol remains secure, but smart wallet and DEX features are sunsetting in 2025. Keep your assets safe by withdrawing funds promptly and storing them in a trusted wallet or regulated exchange like OKX. Non-custodial designs don't protect from missed withdrawal deadlines.

Can I use Loopring for NFTs after July 2025?

Most Loopring NFT marketplace and transfer features will stop after the July 2025 shutdown. Current users should withdraw NFTs or bridge them to another Layer 2 or mainnet venue ahead of time to avoid being locked out.

How do I withdraw my funds from Loopring?

Log in to your Loopring app/wallet. Use the "Withdraw" option to send funds to your Ethereum mainnet (L1) address or a supported CEX like OKX. Be sure to do this before the official sunset deadline to guarantee access to your assets.

What are the alternatives to Loopring?

Consider leading Layer 2/zkRollup protocols like zkSync Era, Starknet, or Polygon zkEVM. Each offers unique products and ecosystems—see our comparison above for help choosing the right fit.

Will Loopring keep supporting AMM trading?

No, official statements confirm AMM trading and most DEX functions will be disabled by July 2025. Users must move liquidity and assets out of the protocol before the shutdown, per guidance on Loopring’s support channels.

Conclusion

Loopring pioneered zkRollup scaling and empowered everyday users with ultra-low-fee trading on Ethereum. But in 2025, smart wallet and DeFi features are shutting down for security and sustainability reasons. If you hold assets or use the Loopring DEX, now is the time to plan your transition.

Key takeaways:

• Loopring’s protocol and LRC token remain live, but app features are sunsetting soon
• Withdraw, swap, or bridge assets to secure wallets or a trusted exchange before deadlines
• OKX provides a seamless way to trade LRC, explore Layer 2s, and keep your crypto safe
• Always prioritize security, transparency, and clear timelines during migrations

Act early to avoid loss and make the most of what Loopring and Ethereum Layer 2 offer. Explore assets and Layer 2s with OKX for a smooth, secure crypto experience.

This content is for informational purposes only and does not constitute investment advice. Crypto trading involves risk; always do your own research and use security best practices.