Recap AMA Loopring x Bvnex
On August 29th, Bvnex cooperated with Loopring (LRC) to organize an AMA at Bvnex's Telegram Vietnam channel. Here, the community is explained more valuable information and the future plan of the project. In general, AMA has gained strong support from the community, Loopring has received many questions.
Bvnex collects all questions as well as all answers of Loopring so those who missed AMA can learn more about Loopring.
- Host Manh Nguyen - Community Manager of Bvnex
- Jay Zhou - COO Loopring - answers questions from Bvnex and the community
Part 1: The introduction
About Jay Zhou
Jay is the COO and co-founder of the Loopring Protocol.
He has extensive skills across online payment & financial operations with a particular focus on risk management and innovative solution.
Prior to Jay’s work in the cross-border payment at PayPal, he worked in a spectrum of different industry sectors including; Risk&Compliance at Ernst&Young and a member at Global Shapers Community.
Jay has been supported and published articles on blockchain tech at Chinese Smart Contract (Ethereum) community and mentoring blockchain course at Stanford University.
About Loopring
Loopring (LRC) is an open protocol for scalable non-custodial exchanges on Ethereum. The Loopring protocol smart contracts and zero-knowledge proof circuits allow the building of high-performance DEXes using a zkRollup construction. This allows for higher throughput and lower settlement costs without sacrificing Ethereum-level security guarantees. LRC token can be staked by holders to earn protocol fees, and by DEXes as a bond to follow protocol-defined behavior.
We started with a token sale in 2017 and raised 120,000 ETH in weeks globally. Now we have a team in Belgium, Canada, China, and USA, about 20 people.
Part 2: Loopring answers questions from Bvnex
Question 1: Our users concern about the tokenomics and how investors can participate in and benefit from Loopring. Can you explain it?
LRC plays a big role in 3.0, and it mostly comes down to staking — staking to reap rewards, secure exchanges, and reduce fees.
LRC is becoming a stake-able token, to be used in 3 types of staking:
1. Anyone can stake LRC to earn part of 70% of the protocol fees of all exchanges built on top of Loopring. (20% will fund the Loopring DAO and the remaining 10% will be burned).
2. An exchange owner needs to stake LRC for economic security & reputation.
3. LRC can be staked to lower the protocol fees on a specific exchange by an exchange owner, market makers, and high-frequency traders.
We will redesign LRC tokenomics to make the LRC more attractive for users. And a Loopring DAO is coming next year.
Question 2: #DeFi is the hottest term in the crypto industry right now. What do you think about this DeFi trend?
AMM and yield farming is definitely the hottest topic right now.
DeFi gives everyone in the world access to an essentially unlimited number of financial products and services. These opportunities, which range from simple savings products to complex trading platforms, are nearly frictionless, in the sense that they require very little infrastructure.
Question 3: The communities are crazy about DeFi. Many users just ‘follow the herd’. What’s your advice?
There's one famous crypto slang:
"Buy the rumor and sell and news out"
I think this slang applies to most crypto projects. Because only a few has sustainable growth. Most of them just pump and dump. And its like pump for 3 months and dive in the 3.5 yrs.
In DeFi, users and projects face risks and threats, including hacking, market volatility, and the fluctuating value of ETH. I believe 90% of DeFi project will fail in 4 yrs.
Question 4: And a very important question is: Can DeFi bring the next bull-run?
I think DeFi already kickoff or bootstrap the bull-run. If you compare the volume from last year or even the first quarter. Its more than 10X growth.
As previously reported by The Crypto Associate, Ethereum DeFi apps reached a staggering $5.7 billion in volume in June, according to Dapp.com's 2020 Q2 Dapp Market Report. Moreover, DeFi apps saw an all-time high of over $600 million on June 21, 2020.
Ethereum faced all-time high results in regards to value. Of course, The Ethereum DeFi category was the biggest driver behind this. Accounting for around 95% of the total value created on the chain.
DEX has approved itself. A year ago or 2 yrs ago, most people don't believe DEX will pick up the volume. But now we see top tier dex has $billion volume every day.
Question 5: We talked much about the advantages of DEFI. How about the challenges?
DeFi apps don’t require any intermediaries, and therefore don’t need arbitration from any third parties. While smart contracts resolve all possible disputes, the users control their funds. This reduces the cost of services and provides for a more transparent financial system.
DeFi software initialization is carried out over blockchain networks so that the influence of unauthorized persons on the system is excluded. This data is recorded on the blockchain and is distributed among thousands of users, which eliminates censorship or forced shutdown of the system.
There’s one more advantage to such open ecosystems. It lies in the simple access to financial services for people who, for some reason, don’t have such an opportunity. The traditional financial system is based on being an intermediary for the profit, therefore, residents of low-income regions have limited access to financial services. DeFi gives people an opportunity to use the necessary financial services regardless of their location.
There's no perfect product, cos our desire or needs will always change.
Question 6: So what’s your scenario for the Loopring Project in the future of DeFi market?
People can use email and password to access the crypto wallet, just like log-in your TikTok or Instagram. Loopring Pay is like you can send ERC20 or ETH to anyone for free and instantly. Faster than PayPal or Wechat Pay.
PS: send an ERC20 token cost your $2~8 dollars in the past month.
Question 7: And one more, tell us about the difficulties that Loopring is facing.
We feel that time is not enough, we want to deliver our product asap. Our team is working on a Mobile APP (smart wallet + zkRollup DEX + Payment). 24 hrs per day is not enough for us.
Question 8: Vietnam is an emerging market in the crypto field. Does Loopring have any plan to reach out to the Vietnamese market?
I plan to visit Vietnam and build come local community as soon as covid#19 over.
Part 3: Loopring answers questions from the community
Question 1: What is the development roadmap of Loopring in the future?
We will release a mobile APP in 2020. Q4. and run Loopring DAO in early 2021. And more listing for LRC.
Question 2: When I want to connect a MetaMask, Trust... wallet, I have to pay a pretty high ERC-20 fee. Does Loopring think this can reduce users of your DEX platform? What do you think about EOS platform, TRON ...? What does Loopring expect on the Etherum 2.0 platform?
Yes, on Loopring Layer 2 network. All the transfers are free now for users. EOS will go off eventually. And TRON still has some volume. Justin is really good at marketing.
Question 3: The boom of DeFi projects has been impressive in recent months, do you think that a bubble is being created, or is it something sustainable over time?
I agree. It’s kinda bubbling now. Because both good people and bad people see the opportunity here. After the market correction(in near future) DeFi will be stronger.
Question 4: One of the downsides to DEXes is that they are slow to trade. How does Loopring solve this problem? Do you think Loopring will serve to boost DeFi projects?
It’s not a problem for Loopring. Loopring uses zkRollup to scale up Ethereum TPS up to 2200 txn per second.
Question 5: DeFi space is very complicated to grasp for the “non-coiners”, how could you explain the function and strengths of Loopring project in relation to DeFi in non-technical language? Also, what are those specific problems that the project aims to solve on DeFi?
DeFi allows anyone to access financial products.
Basically, DeFi gives you chance to use financial leverage products. It’s very important for developing nations specifically. because those places don't have a mature infrastructure.
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