Loopring is a layer 2 scaling protocol designed to optimize and facilitate the building of non-custodial, orderbook-based decentralized exchanges (DEX) and payment protocols on Ethereum. The project looks to eliminate the bottlenecks associated with cost and scalability often experienced by Ethereum users. Loopring achieves this by building a secondary layer powered by ZK-rollups where transactions can be processed at a fraction of a cent and finalized faster than it would typically take to execute transactions on the Ethereum blockchain. By adopting the ZK-rollup technology, Loopring processes transactions in batches rather than entering each individually into the blockchain. This system not only enhances speed but also reduces transaction fees considerably. Notably, Loopring's solution still relies on the security infrastructure of Ethereum. In other words, even though transactions are processed on a secondary layer, finality is achieved when such transactions are eventually recorded on Ethereum's blockchain. Another core feature is Loopring's decentralized nature. The protocol does not rely on centralized processes or infrastructures to function. As such, Loopring ensures that users are in control of their funds at all times. LRC is the native ERC-20 token of the Loopring protocol. It is primarily used to anchor the incentive-based economy that rewards users for contributing positively to the sustainability of the protocol and its in-house decentralized exchange. Like most layer-2 solutions, Loopring allows users to pay fees with its native coin. When a user completes a trade on Loopring, 20% of the associated transaction fee is set aside as the protocol fee. The accrued protocol fees are shared among liquidity providers and insurers of Loopring DEX. Liquidity providers are the users that deposit their holdings on the decentralized exchange to make liquidity available for other users to trade against. On the other hand, insurers deposit their LRC tokens into Loopring's insurance fund as a safety net against unforeseen security incidents. Apart from the yield-generating system designed around LRC, holders can also use their tokens for governance purposes. Since Loopring is governed by a DAO, users can join the decision-making process by holding LRC.