Is the FTX collapse massively bullish for Loopring DEX?
Not in the short term. But in the long term is this the type of thing that needs to happen to really highlight the benefits of a platform like Loopring DEX?
One of the biggest exchanges, certainly one of the most widely know, and one that was believed to be amongst the most regulated, just got attacked with a FUD campaign and got completely exposed.
Fractional reserve banking can never stand up against a bank run without being bailed out. All of the exchanges have only fractional reserves. Customers’ capital is always at risk no matter which CEX they keep their funds in.
But what about metamask and other options? Sure.. go for it. But then you have to pay those hefty fees when you trade.
So how is Loopring any different?
Well, Loopring is non-custodial, so users retain control of their own funds at all times. It’s your keys, so it’s your crypto. You don’t give your money to Loopring to look after, you simply use their protocol to hold your own coins for yourself. There can never be a bank run on loopring. There is no risk of anyone ever losing their crypto. Even if loopring goes down you still get 100% of your funds back.
With the use of zk-rollups, Loopring claims its exchanges can provide faster settlement for traders. Zk-rollups is a Layer 2 scalability solution that facilitates blockchains to validate transactions faster while keeping gas prices low. Using zk-rollups, the Loopring platform also allows exchanges to build on top of it to avoid the poor speeds and high costs associated with decentralized exchanges on Ethereum.
But I want to trade… sure, trade away.. low fees and no front running. Both liquidity pools and market trades available.
But I want to stake… you can, options available direct in the wallet.
But I want to do X, Y and Z.. you can! It’s your coins on the Ethereum blockchain… do as you will.
What will it take for people to wake up to Loopring protocol?
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