The bear market events from 2022 have changed the crypto space in many different ways. One of the biggest changes is that more and more users who only used centralized solutions to generate yield on their crypto holdings before are now switching to decentralized solutions.
Decentralized Finance platforms enable you to put your crypto to work without losing control over your assets.
One of these Decentralized Platforms that gives you all the tools you need to become your own bank is Loopring.
Let me explain what Loopring is and how you can take advantage of the different Loopring Earn opportunities.
What Is Loopring?
Interacting with Decentralized Finance Protocols on the Ethereum blockchain requires you to pay high transaction fees called gas fees and many users are not able or willing to pay them.
Loopring is a zkRollup protocol that sits as a second layer on top of the Ethereum blockchain and tries to fix the current issues like high transaction fees and long transaction times. The optimization is not taking place on the base layer of Ethereum that most of you are already familiar with. The optimization takes place on a second layer that works like an accelerator.
With the help of Loopring, you can literally step off the gas pedal on the Ethereum blockchain to enjoy scalable and secure exchanges and payments at low costs and fast speed.
The Loopring team has already built several non-custodial, high-performance products on its Layer 2, including the Loopring Wallet and the Loopring Exchange. With the implementation of Loopring Layer 2 in the official GameStop Wallet, the Loopring team has started pushing its zkRollup solution to the mainstream.
Adding Liquidity to AMM Pools
One of the traditional earning opportunities on a DEX is providing liquidity to AMM pools and on Loopring Earn, it is not different.
Providing liquidity to AMM pools on Loopring is actually very simple. All you have to do is connect your wallet, select the trading pair, and then you can start providing liquidity in just one click.
Loopring takes random snapshots of the different AMM pools several times a day to calculate the size of the reward. All rewards that are coming from liquidity mining are paid in $LRC tokens.
Ethereum Staking
You can stake your hard-earned Ethereum either on a Centralized Exchange or directly on its base Layer 1. The smartest way, however, to stake your Ethereum is probably using Loopring’s Layer 2 because staking Ethereum with Loopring Earn is a lot cheaper and also faster than any other solution.
On Loopring Earn, you can choose between two popular staking providers for Ethereum 2.0, Lido and Rocket Pool.
It works the same way as if you were staking Ethereum directly with Lido or Rocket Pool on Layer 1 but with one huge difference: On Loopring Earn, you can get your $wstETH or $rETH rewards gas free
When you use Lido to stake your Ethereum, you will receive $stETH that represents your Ethereum that is staked on the Ethereum beacon chain on a 1:1 basis.
The total amount of $wstETH tokens doesn’t change after you have received the tokens. Instead, the token’s value increase over time to reflect the Ethereum staking rewards earned. Staking via Rocket Pool works the same way with the difference that you will receive $rETH tokens instead of $wstETH tokens.
Dual Investment
The third option to put your crypto to work on Loopring Earn is called “Dual Investment”.
Dual Investment on Loopring Earn is an advanced tool for experienced users that offers you the possibility to either sell your crypto high or buy crypto low at your desired price as well as on your desired date.
If you subscribe to a Dual Investment product on Loopring, you have to keep in mind that you will not able to cancel or redeem the subscription until the final settlement date.
Coming Soon: $LRC Staking
Another long-awaited feature that will be added to Loopring Earn soon is $LRC Staking.
$LRC is the native token of the Loopring protocol and can be used for voting on changes in the protocol, paying reduced trading fees on the DEX, and paying rewards for providing liquidity on the DEX.
Making $LRC stakable is one of the top priorities for the Loopring team right now and this exciting feature for all Loopring holders will be added to the Loopring Earn section soon.
My Final Words
I hope that I could provide you with some useful information about Loopring Earn, the decentralized tool that enables you to become your own bank.
If you like to keep yourself up to date about the latest developments on Loopring, I recommend signing up for Loopring’s Quarterly Update and following Loopring on their various social media channels:
Twitter ⭑ Discord ⭑ Forum ⭑ Reddit ⭑ GitHub ⭑ YouTube ⭑ Telegram
Follow me on Twitter and Medium.
