Loopring is a protocol for building decentralized exchanges. Besides the protocol smart contracts, Loopring also offers a collection of open-sourced software to help you build decentralized exchanges.
Loopring does not require users to send tokens to any party for custody. Tokens always remain in users' blockchain addresses during the entire trading/transaction life cycle. Loopring orders do not lock users' assets, which means users can transfer tokens around even after orders have been submitted - Loopring will automatically adjust order amounts during settlement. Loopring protects users from threats such as exchange bankruptcies and hacking.
Loopring's generic design ensures it may be deployed on top of any public blockchain that has smart contract support. It can also be integrated into blockchains as part of their native codebase. We have deployed Loopring on the Ethereum mainnet, and have deployed an implementation on the NEO testnet.
Loopring provides higher liquidity and price improvement by matching orders
in the form of order-rings. Each ring may consist of 2 to 16 orders, and
tokens are transferred atomically in a circular manner during ring settlement.
Loopring orders do not hold any tokens and can thus be shared with as
many relayers as possible. We encourage order sharing to speed up order
matching and avoid single points of failure.
With order sharing, multiple relayers can form a consortium for building a shared liquidity pool to compete with established exchanges. The overall liquidity of Loopring-powered exchanges will be less fragmented.
Our patented "Dual Authoring" technology prevents orders and rings from being stolen by any middlemen or blockchain miners without binding orders to any dedicated relayers. The decoupling of orders from relayers makes orders genuinely sharable.