What is Loopring
Loopring is a Layer 2 chain (zkRollups) built on the Ethereum blockchain. A Layer 2 chain is a secondary chain that is built on top of the existing Ethereum parent chain. It is lightweight and fast, built to handle small transactions (micropayments) with lower fees, reducing traffic on the main network. Layer2 zkRollup technology ensures that users assets are as secure as on Ethereum’s main network, at a fraction of the cost: the cost of a transaction on Loopring is less than 0.1% what you would pay on Ethereum L1.
About the LRC token
LRC is the native governance token of the Loopring network. Loopring protocol fees come from transaction volume (economic activities) on Loopring Layer-2 (L2) and are also directly distributed on L2. Protocol fees are paid to 3 types of participants: a) liquidity providers, b) insurers, c) Loopring DAO, in an 80/10/10 proportion, respectively.
These fees are all paid directly in LRC tokens on the Loopring Layer 2. This directly incentivizes use of the native LRC token within the Loopring Ecosystem
Where & How to buy Loopring (LRC) tokens
Cryptoexchanges offer an intermediary options for more advanced traders. Exchanges such as Bittrex & Binance allow customers to set buy and sell orders for token, very similar to the real world stock market. Most exchanges offer trading pairs in Bitcoin and Ethereum, meaning you will need to purchase these before trading into LRC tokens.
Decentralized Exchanges – Advanced Users Only
As LRC tokens can be ERC20 & Layer 2 tokens on the Ethereum and Loopring chains respectively, this means they can be traded on a number of decentralized exchanges. A decentralized exchange is a website or smart contract which allows trading of ERC20/Loopring assets tokens without the need of a trusted third party. A user would connect their Ethereum wallet to the exchange and be able to trade their token while still being entirely in control of their tokens without having to trust a centralized coordinator who may potentially lock or steal their tokens.
How to buy ERC20 LRC on Uniswap
Below are a basic set of instructions on how to purchase LRC tokens on the Ethereum blockchain. For each step, you may need to research to gain an in-depth understanding of how it works.
- Get some Ethereum. We are going to trade our native ETH for LRC tokens on the Ethereum blockchain. If you do not have any ETH, you can easily purchase some through a fiat gateway like Coinspot, Binance or Coinbase
- Set up an Ethereum Wallet. We suggest using Trust mobile wallet or Metamask. When prompted, create a new account. Be careful to store the seed phrase and private key securely: if someone steals this keys, they can steal your LRC tokens! Also take note of the public address of this account, you’ll need this later.
- Send the Ethereum to the public address of your newly created wallet. Double-check the address before click send.
- Navigate to the Uniswap App.
- Connect your wallet using the button on the Uniswap app.
- In the bottom box, select the Select Token button, and then the Change List button. Change from the Default list to Coingecko list.
- Find LRC in the bottom list and select it.
- Enter the amount of ETH you would like to sell in the top box.
- The bottom box will auto populate with the approximate number of LRC tokens you will receive as part of the trade
- Select the Approve button to allow Uniswap to transact using your ETH.
- Once the Approve transaction has completed, press the Swap button.
- The Uniswap smart contract will now process your swap.
- Once the swap has been completed, your Ethereum wallet will now contain the LRC tokens you purchased.
- Happy trading!
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