This is not a paid gig, nor is it a referral 'thing'. Not that there's anything wrong with that :-)
Gordon likes the inspiration behind DEX, but also recognizes there are benefits from CEX, at least in the short term.
No clue what I'm talking about? Well, this is crypto so you better catch up quickly! But, if you just happened to slide in as a total newbian, then welcome!
DEX stands for a decentralized exchange, where folks can trade cryptocurrency while anonymously syncing up their own private wallets. While their funds are connected to the platform's order book, the DEX does not take over ownership of one's funds, and in most cases there is no KYC or dox'ing of any kind.
CEX stands for a centralized exchange, and as you might guess, it's likely the opposite. Whatever wallet configuration you will be presented with once signing up, will be on their platform, meaning the deposits and withdrawal addresses provided are theirs, even though they are unique to your account.
Usually, one important distinction between DEX and CEX is whether the platform offers any support. In many cases, DEX projects intentionally embrace the 'less is more' ethic driving O.G. cryptonians. The idea that one is in charge of their own destiny, doesn't need hand-holding, and if they have questions join TG or Discord, or read the Blog is 'central' to many, if not most DEX platforms.
One of the hurdles that is improving regularly, but which is also a distinction, is that most DEX sites suffer from far less volume and liquidity than the largest CEX platforms. This brings me to an important point... a redundant one for those who like Gordon's posts:
Buyers are Liars
The crypto world largely screams about how much they hate CEX, bad support, don't care about customers, dox with KYC etc. But then, look at the volume and the number of people in their social forums. In real estate, it is said that clients will have extremely particular lists of 'must haves' and certainly 'must not haves' but then they will fall in love with a house that is too far, in the wrong neighborhood, wrong school district, has the wrong number of rooms, wrong number of stories etc. Buyers are liars. Everyone claims DEX are the future of crypto, but few are embracing them to the degree that reflects their ideals.
Just recently, it seems that Uniswap, Pancake and all of this newfangled stuff is building up larger interest and volume, and a faint suggestion of alt season massive pumps may be fueling some of this. But, usually there comes a point where volume becomes more realistic and we see how platforms truly stand the test of time. For now, this is not 'that' article.
As you noticed in the title, this is specifically about Loopring, and this is not an all-inclusive, everything you need to know about Loopring. Why? Because there is a LOT to say. I want to explore that deeper and plan to do so very soon.
Loopring is an ETH-based platform.
Loopring is not yet a giant of the DEX world, but in my eyes, they are. They need to grow their user base, and thus they need a lot more volume. But, I am happy to say that I have run them through the paces and I have traded fairly extensively with them. So, I feel qualified to say what I like and dislike. It's kind of easy, because the dislikes are already pretty much covered. I look forward to the day that they have mad crazy volume. That's pretty much it.
Loopring syncs easily with my metamask. They charge a fee to sync up and initially load something into the exchange's smart contract, if I have my terminology correct. If not, I'll get a correction from the Loopring team and fix it up here. Again, this is not the technical article I look forward to writing. This is just me sharing my crypto super hero thoughts on a cool DEX. The only technical correction I would make at all, is a tiny improvement to the chart layout. I'd like to see a 1 minute option, because I trade high paced, low profit, and 5 minute or longer as a minimal setting usually means the volume is not yet up to par. For DEX, though, I can say it isn't bad!
More positives:
The instructions for using their platform are extremely descriptive and accurate. They know what most new users are going to worry about and they handle it like champs.
The fees are much better than other DEX, and I believe that will serve them well when they are big time.
Despite the need for more volume, which they are aware of, the order book is solid; when there are orders to match it is fast and I've never felt that my trades were tapping out because the matching engine was lacking.
Getting to one's account details and seeing trades, potential fees etc. works as well as a CEX.
They have a lot of the things people are looking for these days, and if they don't yet, they are working on it. They are mindful of things like staking pools, earning rebates and the sort, and often one gets a sense of being completely on their own without a community when doing DEX. In this case, one feels like they are part of the DEX world and can almost sense the traders on the other side of their order, which is hard to explain, but maybe it is because I am getting to know some of the team, and feel comfortable with what they are doing.
They are actually tangible, reachable people who appreciate early adopters and answer questions. So, even though their articles should tell you everything you need to know, you are getting the comfort and hand-holding that usually only comes with CEX, and I can tell you, there are TONS of times that I've stuck with certain CEX's for no other reason than their support. So, in my opinion Loopring has a secret weapon that is hard to mimic, simply by being present and making their platform feel like it is created by real people who care about your access if something concerns or interests you.
It is my opinion that everything I am looking for in the perfect platform could very well end up being Loopring. If they can get in the range of $20-30M minimum daily volume regularly, it may be enough to consistently close fast transactions and I could abandon CEX all together!
One of the best features of the platform is that they totally rock when it comes to fees and the speed of the order book. They get around the expense and fluctuation of gas fees by bundling a ton of transactions into a single contract, if I have the terminology correct, which means when first loading funds and connecting one's wallet, there is a pause while it has to fill up the entire contract. That part makes a new user nervous, but again my experience has been flawless and I think everyone else's has as well. Once on the platform, it's super fast, but your funds are still on the ETH chain and not on a site that could be hacked. No one can get to your funds until you decide to offload to your personal wallet. This means that maker fees can be low-to-no, because you are not paying gas every time to place an order. Market orders pay a small Taker fee, but really we're within the window of low CEX fees and that is not always the case with DEX, since once again, the more popular ETHER is, the higher the gas fees involved. Loopring really seems to have the right answer here!
I like these guys enough to say that I may even hope to be a little more involved in their community time willing, and their success would in many ways feel like my own success. Though this is not a direct plug, the truth is I really think crypto needs more players like this that serve the balance of privacy and access, with people who are there when you need them.
I hope you find this of interest and for now, Crypto Gordon Freeman... out.
