The third quarter of 2024 was highlighted by the launch of Loopring DeFi, our new multi-network DApp that will scale the Loopring ecosystem throughout Ethereum and beyond it’s isolated island on Layer 2.

Powered by the Loopring protocol, deployed as Loopring Layer 3, this new DApp is filled with a suite of new DeFi products that help bridge the CeFi and DeFi worlds by serving up centralized exchange (CEX) liquidity inside unique DeFi products, served straight to users self-custodial Ethereum wallets.

Our first multi-network offering for Loopring DeFi is on Taiko mainnet, with many more network deployments coming in the months ahead.

Read on for many more details and highlights as well as a few things to look forward to in the Loopring ecosystem.

Milestones

• Loopring Protocol expands to Layer 3 — the longest running L2 ZK-Rollup protocol on Ethereum is now deploying as Layer 3 across other L2 networks
• The new Multi-Network Loopring DeFi launch — Loopring’s multi-network future has arrived with the all-new Loopring DeFi DApp — powered by Loopring L3

Q3 Summary

A summary of our highlighted announcements and releases over the course of Q3/2024.

1. The New (Multi-Network) Loopring DeFi DApp

The next evolution of Loopring is here — and it’s Multi-Network — powered by Loopring Layer 3 on Ethereum!

Our new multi-network DeFi DApp brings users unique DeFi products that you can’t access anywhere else by tapping into the CeFi world and bridging centralized exchange (CEX) liquidity and tokens directly to your self-custodial Ethereum wallet.

We’ve just unleashed this new DeFi DApp into the Taiko ecosystem by deploying our Loopring L3 protocol on top of Taiko. We will soon be undergoing some campaigns with Taiko to start battle testing, building some traction and getting it ready for other networks in the future — more on this in the Path Forward section below.

2. Loopring Incident Report + Path Forward Blog

As part of our continuing commitment of full transparency, we recently published a full Incident Report — providing background and full post mortem report on the recent hacking incident that took place that affected multiple Loopring Smart Wallet users.

As a result of the learnings of this incident, our priorities and roadmap have also had some adjustments.

3. Taiko Wallet Upgrades

Your Taiko wallet inside the the Loopring mobile app got some major upgrades over the past quarter.

The biggest upgrade to the wallet in Q3 was the addition of the now baked-in Loopring DeFi section. Taiko wallet users can now quickly and easily access the full DeFi DApp, including all of it’s products inside, with an optimized user experience.

Other additions to the Taiko wallet in Q3:

🔹the built in DApp Browser — to explore other DApps across Taiko
🔹the Gas Tank — which saves users money on transaction fees by using this pre-filled fee account

Look for the Loopring Smart Wallet in your app store to try it out today!

4. Welcome to the new Loopring.io

We’ve updated our home landing page to better guide users into the right section of the Loopring ecosystem that serves them best — while also better highlighting our multi-network Loopring DeFi focus.

5. Bridging to⇄from Loopring ⇄ Taiko

Curious how to send funds directly between Loopring L2 ⇄ Taiko? We’ve got you covered.

In Q3, we introduced more integrations with third party bridging DApps in order to better facilitate complex bridging between networks. This functionality is very helpful when trying to move funds between Loopring L2 and Taiko, as an example, if you want to start using the new Loopring DeFi DApp on top of Taiko.

In the Path Forward section below, we will detail more plans we have to integrate our own custom bridging solutions as well to make this user experience even smoother.

6. Loopring Ecosystem Upgrades

We added a number of new upgrades + features throughout the Loopring ecosystem this quarter. Check out some of the main highlights below👇

Smart Wallet Security and Decentralization Enhancements:

• Invisible Cloud Backup — made the cloud backup file/folder accessible only to the Loopring Wallet, enhancing security by preventing unintended disclosure or accidental deletion
• Legacy Backup Option — allowed users to select legacy backup files to restore in case of backup failure in the new trustless mode
• Seed Phrase Backup Reminder — added a clear reminder for users to manually back up the Seed Phrase if cloud backup is disabled or if the Seed Phrase hasn’t been successfully backed up
• Trustless Guardian Interaction — enabled guardian interactions in a trustless mode. Security-sensitive operations requiring guardian approvals can now bypass the Loopring Relayer. Users can generate a transaction hash (QR code) and collect guardian approvals off-chain, submitting the final approved request on-chain. This ensures smart wallet functionality even if the Loopring backend is unavailable
• Self-Help Transaction Mode — should the Loopring backend fail, users can now still relay transactions on-chain using any other EOA wallet
• Session Security Fix — addressed a potential security issue where multiple sessions may allow a later session to impersonate the original DApp origin

Loopring DeFi Dapp Introduction:

• DApp Expansion — expanded the Loopring Earn DApp to become the Loopring DeFi DApp (earn.loopring.io → defi.loopring.io).
• Taiko Network Support — added support for the Taiko network
• Enhanced Functionality — extended beyond Dual Investment to include Block Trade and Portal features inside the DApp

Portal Usage Optimization:

• Leverage Optimizations— streamlined the flow to enable up to 10x leverage within the Portal
• Health Factor Alerts — added notifications to alert users when their health factor becomes risky
• Dust Collector — introduced a Dust Collector feature to convert token balances below the minimum transaction amount into USDT

As always, we will continue to gather feedback from the community as well as work with our partners to add new features, tools, and improve the usability of Loopring products so that users can truly move closer to becoming their own bank.

Path Forward

The following is a currently expected product development roadmap from the Loopring Foundation team. Please note that while these products + features are in development, timing cannot be guaranteed as priorities can shift over time based on internal or external circumstances.

1. Taiko x Loopring DeFi

Loopring’s Multi-Network future is here and we’re going to be kicking it off in a big way with a promotional campaign on Taiko very soon.

As part of this campaign, we will be coordinating and cross promoting with the Taiko team to promote the Loopring DeFi DApp as well as taking part in some talks/spaces to expand awareness. This is part of our ongoing partnership and coordination with the Taiko team. Be sure to keep your notifications on to hear more about our campaign and upcoming plans.

Also, stay tuned to our X and other socials for many announcements over the coming months as we continue to roll out Loopring Layer 3 across Ethereum!

2. Loopring Decentralization Effort

We are currently undergoing a big, new effort to help bring Loopring into the future by making all products scalable and robust with a strong decentralization push.

Especially in the case of the Loopring Smart Wallet, where the focus is shifting from the wallet specifically in the mobile app, to the overall user experience of the new Loopring DeFi DApp, making it as mobile friendly as possible — we want to ensure wallet users will always have access to their wallets and ability to transact or withdraw, even if Loopring services aren’t directly available.

We have directed a lot of developer resources over the past quarter at rearchitecting our security in the backend and undergoing a massive decentralization effort, which we think will be very beneficial over the long term to remove as many dependancies on Loopring centralized services as possible.

A couple of the main benefits to users:

• ensuring that users of the Loopring Smart Wallet will always have access to their funds and are able to make transfers or withdrawals even without Loopring services in the case of outages
• rearchitecting the backend products like Portal, Block Trade, etc, to ensure users have maximum uptime — making these products truly scalable for other networks

This is all part of our overall, long-term strategy to focus on the new Multi-Network Loopring DeFi effort as well as making the Loopring mobile app as user friendly as possible with our Multi-Network rollout.

If we want these products to be adopted by large amounts of users across every network, we need them to be as scalable, decentralized and robust as possible with maximum uptime and little to no dependencies on any centralized services.

3. Loopring Portal Improvements

The new Portal experience is now LIVE on both Loopring L2 as well as Taiko mainnet with our Loopring DeFi launch — in the coming weeks and months, we have plan to roll out improvements to this product with liquidation improvement, new token additions as well as potentially demo trading in the later future.

Loopring Portal is a new flagship product in the Loopring ecosystem, bringing a CEX-like leveraged trading environment (with real CEX liquidity) direct to your self-custodial wallet. No depositing to a CEX required!

It also allows you trade not just Ethereum-based tokens (ERC-20s) but tokens from other networks as well like Solana (SOL), dogwifhat (WIF), DOGE and many others.

We believe this product has the potential to be a game-changer across Ethereum, offering a truly unique trading experience.

In Q3 we made many upgrades to the Portal:
🔹leverage has now been increased up to 10x
🔹new notification alerts were added for at risk positions
🔹dust collector function now added to convert small amounts to USDT
🔹we added a function to redeem partial collateral

Stay tuned as we roll out more updates to the Portal in the future!

4. More Network Expansion

Loopring’s new Multi-Network future is now well underway, with the foundation being built for many more network activations in the future.

Over the months ahead, a primary focus for us will be expanding Loopring beyond its long-standing isolated L2 ecosystem, transforming it into a multi-network brand. Our long-term goal is to offer users some of the most unique DeFi products in crypto — easily accessible to every user, anywhere they are.

As part of this — you’ve already seen the rollout of the now multi-network enabled Loopring Smart Wallet, as well as the launch of our highly anticipated Loopring DeFi DApp offering, which both have the Taiko network now enabled.

The new DeFi DApp is powered by our Loopring Layer 3 protocol, which is deployable across any Layer 2 network on Ethereum.

5. Easy Bridging + Fast Withdrawals

In Q4 of this year or in early 2025, we’re planning to be rolling out new bridging options to Loopring ecosystem users that will cut down costs on deposits and withdrawals for popular coins (including ETH, LRC, USDC, USDT, IMX) by around 50% — it will also speed up the process to around a minute.

We will also be simplifying the overall bridging experience for users, making it easier to quickly bridge from one network to another — whether that’s simply from Loopring L2 to Ethereum or a more complex hop from Taiko to Loopring L2.

For simple withdrawals, there will be a new trusted option, offered to users as an alternative to the trustless Ethereum bridge, which can take 30–60 minutes and potentially incur very high costs if Ethereum L1 is congested.

For more complex bridges to other networks — users will be able to choose between the trusted (like Orbiter, LayerSwap, etc.) and trustless solutions. We believe in optionality and giving users lots of tools to use in any scenario they choose.

By cleaning up and simplifying this experience, we will also be setting the framework for adding new networks in the future.

Source : Loopring - Nov 13, 2024