Don’t Make These Mistakes When Using Loopring (How to Use Loopring)
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Don’t Make These Mistakes When Using Loopring (How to Use Loopring)

By Ruth eMouse | CryptoWithRuth | 16 Feb 2021


Here’s the TLDR (Too Long Didn’t Read) 

   Mistakes 

  1. Thinking that the initial deposit into L2 is akin to an entrance fee 
  2. Thinking that the token that you’re after is available (if you see the token icon) 

 

Before we set off on the learning journey - what were the objectives in my use of Loopring? 

  1. Get experience using Loopring - SUCCESS :) 
  2. Buy FARM tokens -- NOPE >_< 

 

This is what the deposit screen looks like 

 

Depositing into L2

 

Part 1 - Experience

Do you see that deposit? It doesn’t say how much to put in to have access to L2, so I thought - perhaps it simply a matter of putting in a little to have access. So I thought, perhaps $15 would do to make a bridge between my MetaMask Wallet and the L2 Loopring. This turned out to be incorrect  because that cost could have been better put to use to bring in a larger amount of ETH that $15. 

 

After I entered, I realized that I didn’t have access to my funds in my MetaMask wallet (Layer 1/L1) while I was in L2 - Loopring. So, it wasn’t at all that I could ever make a bridge between the two - Loopring and Metamask by having Loopring hold my $15 worth of ETH, but rather it was a far simpler idea.   

Cost for Entering L2

ANSWER 

Loopring wants you to simply take all the funds that you’re going to use on their L2 Solution. I know -- this sounds actually scary. It almost feels like you’re losing control of my funds by depositing them on the L2, but rest assured. All of what you put in is accessible, and once you’re in the L2, you’ll be able to make the trades in a snap -- and cheaply too! To recap, all the funds that you want to trade with on Loopring, deposit. 

 

Part 2 - Buying FARM Tokens

 

In my research I had accessed Loopring to snoop around and see what’s available to swap. I noticed that FARM token appeared in the swap screen, so naturally I thought that it was an available coin to trade into. This was incorrect, because - although one may observe it on the swap page, one wouldn’t know whether there was actually liquidity available to make that trade.   

No FARM

After running up against this wall, I realized that sad truth, so I had to get flexible and change up my strategy. I can use my ETH in other ways.  

 

RULE OF THUMB 

- Always check the liquidity pool for token availability if you're using a new service.

Check the Pool

 

At the end of the day, I decided to account for both mistakes as hard lessons - and perhaps, a warning sign to help you not make the same mistake. 



STORY ENDING 

    The extra funds that were planned for FARM were used for GRT, to get into the ETH-USDT LP (Liquidity Pool), and hopefully soon -- into a LRC-USDT one as well. 

 

If ever there was a philosophy -- 

---- Taking the bad as lessons, and the good as blessings ^_^ 

 

BONUS CAUTION 

    Fees for withdrawing from the Loopring’s L2 are not obvious and depend on which token. Below is not exhaustive, and withdraw token correspond to the indicated amount 

  • 16 GRT withdraw fee 
  • 0.5 LINK withdraw fee 
  • 0.004 ETH withdraw fee   
  • 18 USDT for withdraw the pool (aka AMM Exit Fee) 

GRT Loopring Withdraw Fee

ETH Loopring Withdraw Fee

 

 

 

After that, there’s no additional gas fee that you have to pay to remove your funds.

Also, swaps are extremely inexpensive :)

 

SWAP Page

Loopring Swap Fee results

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Ruth eMouse
Ruth eMouse

I'm a human who enjoys being. May we not only exist, but also live.


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