Today, Loopring officially launched the “Loopring Decentralized Trading Alliance Program.” Loopring plan to serve 300 ecosystem partners in one year, and implement decentralized trading for each ecosystem partner, and create 300 decentralized exchanges to form an order-sharing global Trading Alliance.
The plan is divided into two phases. The first phase is “Bootstrapping”. During this phase, Loopring will open the official Bootstrap relay cluster to provide free trading management and matching services for the alliance members.
The second phase being “Superconducting”, where Loopring will link third-party relay clusters and provide a liquidity-sharing mechanism between them.
The ecosystem partners targeted at this stage include decentralized trading portals and market makers. The Bootstrap relay cluster operated by the Loopring Foundation (bootstrap.loopring.io) will provide order management and matchmaking services for Alliance members. Loopring will also settle the profitability of the Bootstrap cluster on a quarterly basis (ie 80% commission fee deduction of operating expenses), and reward all the profits to the alliance members in proportion to the order contribution. For each transaction entry, a market maker will also receive a 20% commission fee. This portion of the proceeds will be automatically paid to the Alliance members by the Smart Contract Agreement after each transaction.
Trading entry conditions:
• Have a physical company;
• Have a strong operating team or high traffic;
• Have front-end engineers to adjust UI style, replace icon text, and deploy websites;
• Have a good domain name;
Currently, Loopring has provided open source solutions such as Circulr, Loopr, H5Dex, Loopr-iOS App, and Loopring.js to the transaction portal. Eco-partners can use the source code of these projects, modify page styles, replace icons and copywriting, and deploy their own websites and apps. In the future, Loopring will also provide decentralized solutions for various traffic portals to help analyze traffic. If you would like more information, please visit our website’s Developer Portal at the Front End Solutions page.
Market Maker’s participation conditions:
• Own a physical company;
• Have their own background engineers and develop market-making algorithms by themselves;
The market maker’s income mainly depends on the transaction volume. The greater the volume of transactions, the more relayed profits are distributed.
Loopring provide a loopring.js code library for market makers to facilitate engineers to use nodejs programming. Of course, you can also call the Bootstrap Relay Cluster API service directly in any other coding language.
The bootstrap phase provides liquidity-sharing through the use of a unified relay cluster. Each decentralized transaction portal can see the orders provided by other alliance members. At the transaction level, there is no need for any trust between members of the Alliance and between members of the Alliance and the Loopring Foundation — neither the front or back end of the Loopring Agreement will host any user assets. Even if the relay is hacked, there is no loss of the user’s assets. If you want to get more information, please visit our website’s Developer Portal Background Solutions page.
During this phase, Loopring will introduce multiple third-party relay clusters and open them up with the Bootstrap cluster to provide a second-level liquidity- sharing mechanism. Loopring call this shared relay alliance a “superconducting alliance.”
After entering this phase, the previously added decentralized transaction portal may choose to broadcast its own orders to more relays, thereby improving the efficiency with which their own users’ orders are matched.
Alliance members can also deploy and operate their own relay clusters by optimising our open-source relay software and join our superconducting alliance. Also, in the superconducting phase, all proceeds of the Loopring Bootstrap cluster will be distributed to the operating teams of other relay clusters according to the order contribution. If the superconductor alliance is strong and stable in the later period, Loopring may choose to stop operating non-profitable Bootstrap clusters or transfer them to other organizations for commercial operation.
The future of Loopring’s ecosystem will include more liquidity-sharing alliances that are similar to the “superconducting alliance” network. When this happens, the users will have many more choices, the liquidity will be greater, and the transaction price will be better.
In order to encourage communities to develop better relay clusters, the Loopring Ecosystem Advancement Fund has established a 10 million LRC relay rewards program. Our requirement is that the team must re-develop a new set of distributed relays that outperform Loopring Foundation’s relay software, and the code is 100% open source on github.
Bootstrap phase of the token process
There are three steps required to see your specific transaction pair within the decentralized transaction portal.
1. Register ERC20 tokens in Smart Contracts of the Loopring Agreement.
The token issuer is only required to do this once. The Loopring Foundation will process a batch of product applications each week and register qualified tokens free of charge. Currently, Loopring have the following requirements for tokens:
i) they must comply with ERC20 standards and have no bugs,
ii) they must not be able to issue additional tokens,
iii) the code must be open-sourced and certified by etherscan.io. Again, Loopring do not charge any fees for this.
2. Register the ERC20 transaction pair in the Bootstrap cluster. Again, each week, the Loopring Foundation will process a batch of product applications. However, depending on the operating conditions, the priority is based on the number of locked LRCs. In the superconducting phase, the rights of the relays belong to the relay operation team.
3. Configure the transaction pair in the wallet. This process is completely determined by the transaction portal. Loopring may make appropriate adjustments to the above process and requirements based on the current situation in the future. Please refer to our developer portal.
Differences from the Decentralized Exchange Alliance Program
First, here are some of the features of the Loopring services in this program:
1. The code is 100% open-source: The code of the products and solutions provided by the Loopring Foundation is permanently open source
2. The services are 100% free: The products and services provided by the Loopring Foundation are permanent and free of charge.
3. Trade 100% deduction-free: Loopring Foundation does not make profit gains on members of the alliance, 100% of the transaction’s revenue belongs to partners.
4. Focus on technology and products: provide eco-partners with the best open-source technology solutions and product solutions; explore the ultimate decentralized transaction experience for eco-partners, making transactions simpler, safer, and faster.
The essential difference between Loopring’s Alliance program and a decentralised exchange on the topic of “trading mining” is the following:
1. Loopring is an unmanaged, decentralized transaction integration technology. Loopring orders can be broadcasted to any number of relay clusters without any need for trust. There is no possibility of any coin loss between any participant of the Loopring Decentralized Trading Alliance. On the contrary, the centralised exchange union is still based on fund custody. Once the exchange is stolen, the participants are likely to assume joint and several liability.
2. The Loopring Foundation is a non-profit organization. Loopring will not subsidize alliance partners for marketing gimmicks, but Loopring will maintain our neutrality and provide the best open-source code and solutions for eco-partners.
3. Loopring is a non-exclusive open ecology. Without joining the trading affiliate program, you can still use the road printing protocol in your favorite way, without any restrictions; At any time, our alliance members can also choose to stop using the official Indian Bootstrap relay trunk and switch to their own. Or a third-party relay match service.
On the contrary, centralized exchange union players need to be deeply bound to the back office of the exchange, and operators and rules are subject to control, and they have almost no right to speak. Later, when the value of traffic has been exhausted, users are led to the back office of the centralized exchange. Centers and exchange partners will be ruthlessly abandoned.
How to apply
Please prepare information and team instructions, and send an email to firstname.lastname@example.org. Loopring will accept the alliance application up until August 1st. In order to obtain higher technical and operational support priorities, alliance members can choose to hold LRC. The more LRCs that are held, the higher the member level. Loopring will open the LRC holding details in the future.
This is a guest post. Opinions in the article are solely of the writer and do not reflect AdFunnel Project’s view.