Review on Loopring Exchange by LUIS RIVERO R
This exchange is innovative in its services using a fast version DEX.
This is a de-centralized exchange that has been in development for more than three years, initially launched as a project to create a protocol that would create liquidity in decentralized exchanges and that assets are not centrally guarded.
For now, version 2 is running, which in a few words is very similar to uniswap for its simple version.
Also in version 2 is a more complete exchange service with a view similar to that of centralized exchanges, with buy or sell orders, price charts and selection of trading pairs. In this case the value can be placed by the user and the transaction is processed if someone takes the order or the general price is updated.
What in theory makes this protocol different is its transaction processing and ecosystem designed from scratch, also by betting you can earn rewards for adding liquidity or the main token, since part of the fees charged in the exchange are destined to be distributed among the holders by loopring.
Its main challenge is initiated with the loopring protocol is its 3.0 implementation which is basically an additional layer to ethereum and will not necessarily share liquidity with other Dex as currently happens, which can make your income decrease, however that is your big bet since With this update they plan to be faster and cheaper throughout the Ethereum network.
Pros
- Decentralized design for exchanges, without custody of assets.
- Fast and secure transactions.
- Cheaper transaction fees.
- Version 3.0 is not connected to other Dexes.
Cons
- There are other exchanges with greater use.
