- Loopring staking is now fully implemented on layer 2.
- The first round of L2 liquidity mining has been concluded.
- Ethereum’s second layer can provide a scalability solution for Bitcoin as well.
Scalability solutions for Ethereum are urgently needed as gas prices have exploded over the course of the last year. One of the leading projects in this race is the decentralized exchange Loopring, which has now moved over to L2 for staking and liquidity mining.
Loopring’s TVL goes parabolic
This ends the period of staking directly on the Ethereum blockchain. On their Twitter account, Loopring has announced that all staking rewards will now be sent to the staker’s layer 2 account. The new staking logic will then execute all smart contracts calculation off-chain and post a zk-proof of the result on the Ethereum blockchain.
LRC staking v1 is being sunset 🌇
If you are still in the staking contract, your rewards (+ a little bonus) will be sent to you automatically on L2.
Read the wrap up notes here. And get ready for LRC new economic model this coming week.https://t.co/W7QDAH7rtq
— Loopring (@loopringorg) January 24, 2021
Although not as secure as on-chain smart contract execution, Loopring has already concluded the first round of liquidity mining on the second layer. The rewards have been distributed to miners and the second round of liquidity mining has started. So far, their liquidity mining program has proven to be successful in attracting capital. DeFiPulse reports that Loopring’s total value locked has increased by over 250% since the start of 2021.
Another Scaling Solution for Bitcoin
Layer 2 solutions are one of the key components of Ethereum’s scaling strategy until the rollout of Ethereum 2.0 is complete. Loopring claims that token swaps on their exchange cost as little as 2 US-cents.
Besides decongesting the Ethereum blockchain, layer 2 solutions on Ethereum can also increase the transaction throughput on legacy blockchains such as Bitcoin. Thanks to parity bridges like Wrapped Bitcoin, tokenized versions of the leading cryptocurrency can be transferred on the Ethereum blockchain and traded through L2-enabled decentralized exchanges.
Balaji knows that Bitcoin scales…on Ethereum L2s like Loopring! 🥰 https://t.co/yUE7Xd9v74
— Matthew Finestone | 3body.eth (@finestonematt) January 25, 2021