Episode 340

Loopring – A Scalable DEX Protocol Using ZK-Rollups

Daniel Wang

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 discussed in the 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


  • Least Authority

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