So in this time of panic in the crypto space, I’ve turned my attention to finding something or the other to keep me going and distract me from all the red in the market.
It didn’t take me long to find something.
The Loopring team announced that they have announced NO FEES for resting limit orders. That’s right, a DEX with 0% fees.
Loopring is already a pretty phenomenal DEX protocol, which was recently released to the public. The team has worked on solutions that have brought the price of transactions to virtually nothing and they made continual efforts to bring it down even further. Besides that, it is also more secure and faster than other protocols.
What’s the Big Deal?
But what’s the big deal about having 0 fees for makers?
For the unaware, in a market, makers are those who put an order on the order book, and that trades that occur on that order are called maker traders. Orders are “made” on the order book. Takers are the opposite, those who take orders off of the order book.
Loopring’s decision to make sure there are no fees for makers really sets it apart from other exchanges, including those that have a decentralized version of their exchange. For example, Binance has a 0.1% fee for both makers and takers on both its centralized and decentralized exchange.
These orders may not be much for small orders, but in the case of numerous small orders, the value really adds up. Furthermore, large orders can be hit hard by fees.
But the 0% fee on Loopring’s DEX completely eliminates that, which is something active traders will really appreciate. The reduction in trading fees happened in light of the market drop, among other reasons.
Is There a Catch?
Nope, none at all. Just looking at all of Loopring’s updates and general posts show you that they are trying to make the platform as beneficial as possible for traders. It’s still relatively new, but they’re doing a pretty damn good job so far.
With no fees like this, traders are incentivized to take orders from the order book. There is a ring matching model that puts fairness first and creates a nice pricing model for all parties involved.
What I think about Loopring
Decentralized protocols, decentralized exchanges and the Decentralized Finance (DeFi) space are all growing rapidly. The latter especially seems to be becoming a new pillar of the cryptocurrency market and the value locked in at its peak was over $1 billion. Forget what the market is like now, big names are thinking about DeFi as well - whether it is synthetic assets or stablecoins.
As the market matures and grows stronger technically, we will see even more funds pour into the space (DeFi value has been growing year on year). I have no doubt that Loopring will be at the center of this space and grow exponentially in value in the years to come.
How long that will take and how fast people will turn to Loopring is open to debate, but it will be sometime before it becomes intuitive enough for anyone to be able to do it. This could be through a simpler UI/UX or perhaps the integration with MetaMask will spur adoption.
What do you think of Loopring? Is it something to watch out for? Also let me know if you’d like to see a tutorial on how to sign up with Loopring, in which case I’ll have a guide ready for those who have never used it.