Daniel Wang: Loopring – A Scalable DEX Protocol Using ZK-Rollups

Decentralized exchanges have been around for some time, and various designs have been attempted. Although they provide a number of privacy and censorship resistance benefits, one of their pitfalls has been transaction throughput. However, recent advancements in Zero-Knowledge Proof-based scaling solutions is creating a new breed of scalable DEXes.

Loopring is a non-custodial DEX protocol that achieves high-throughput trading. It leverages ZK-Rollups to achieve upwards of 2,000 transactions per second with on-chain settlement. As an order book-based exchange, it sets itself apart from other DEXes like Uniswap and the Gnosis Protocol. However, users should keep in mind that the orderbook is centralized. Daniel Wang, Founder & CEO of Loopring, talks about why they decided to focus on DEXes and their plans beyond the current version 3.0.

Topics covered in this episode:

• Daniel's background and how he became involved in crypto
• Loopring's 2017 token sale and why they needed to return funds to investors
• The concept of ring matching in the Loopring protocol
• Loopring's use of ZK-Rollups
• The current throughput and transaction cost
• Looping vs Binance and centralized exchanges
• Why Loopring chose to build on a centralized order book model
• The differences between the Optimistic Rollup and the ZK-Rollup
• The Loopring token (LRC) and how it's used in the protocol
• Daniel’s views on the future of the DEX ecosystem

Episode links:

• Loopring website
• Loopring 3.0
• Loopring’s Frontend Vulnerability, Explained
• Loopring Exchange frontend password bug: Postmortem
• Loopring Twitter
• Daniel Wang Twitter

Sponsors:

• Learn how Zero-Knowledge Access Passes can help you build a more privacy-minded business by disconnecting payment and user data. Learn more at leastauthority.com/zkaps

This episode is hosted by Friederike Ernst & Sunny Aggarwal. Show notes and listening options: epicenter.tv/340