Loopring is a next-generation blockchain asset trading protocol and exchange. It employs decentralized technology to offer a zero-risk model for token exchanges, allowing multiple exchanges to compete in matching orders off-chain while settling on-chain. LRN (Loopring Neo Token) is the decentralized trading protocol deployed on the NEO network by Loopring Protocol, meaning LRN is the token issued by the Loopring Foundation on NEO, supporting decentralized token-to-token trading within the NEO ecosystem.

I. Project Introduction

The Loopring protocol is a blockchain-agnostic protocol that enables secure, anonymous, and trustless token trading through wallet authorization of private keys. Currently, Loopring Protocol is not a cross-chain trading protocol (it lacks the technical support for cross-chain order matching), thus it requires issuing a token on each target blockchain system. The supported target blockchains currently include Ethereum, Qtum, and NEO, corresponding to three tokens: LRC, LRQ, and LRN respectively.

Ethereum and NEO are two different public blockchains. LRN is the token issued by Loopring Protocol on NEO, requiring users to register a NEO wallet to receive the LRN airdrop and store LRN. LRN is the token issued by the Loopring Foundation on NEO, with a total issuance of 139,507,605.45 (one-tenth of the total LRC issuance), supporting decentralized token-to-token trading within the NEO ecosystem. Currently, NEOs O3 wallet has integrated LRN. To obtain LRN, one must hold LRC, with the project linking the users Ethereum wallet address holding LRC to their NEO address.

The primary functions of LRN are twofold: as a matching fee and as collateral for exchange registration. The matching fee can be understood as a transaction fee, albeit potentially calculated in a more complex manner than standard transaction fees. As for the collateral, since Loopring Protocol is merely at the protocol layer, it necessitates corresponding exchanges as the application layer. Exchanges under the application layer need to stake LRN as collateral. Staking more LRN grants access to more orders, allowing the exchange to earn more in corresponding transaction fees. This parallels the staking of EOS for bandwidth in the EOS network, sharing the same principle. Thus, its essentially a game theory process, with the value of LRN materializing due to this staking mechanism.

II. Commentary

Loopring itself isnt a decentralized cryptocurrency exchange, but the Loopring Foundation is developing and maintaining a decentralized exchange platform. Loopring connects other blockchains to initiate P2P exchanges without any intermediaries. The success of the project hinges on these critical features.

Loopring currently has three cryptocurrency tokens: LRC (Ethereum), LRN (NEO), and LRQ (Qtum). Each is used to enable trading without locking up cryptocurrency balances.

Loopring matches, validates, and settles transactions through order rings stored on smart contracts. LRx tokens act as facilitators in the backend to technically enable the transactions. Loopring extracts trading data from as many exchanges as possible to match buy and sell orders, facilitating faster and cheaper peer-to-peer transactions.

Relevant Links:

https://loopring.org/

https://www.btc123.com/en/news/13514

https://0xzx.com/20190402093624899.html