Loopring, a decentralized and scalable exchange protocol built on the Ethereum Network, has released details of its new fee schedule.
The schedule will also affect all maker orders dating back to April 29, 2020, on Loopring. These backdated orders will be refunded 8% of all their trading fees. Prior to this announcement, the platform charged 0% as maker fees. Alternatively, Loopring will now charge between 0.06% and 0.2% as a taker fee as compared to its previous 0.1% maximum limit. Interestingly, Loopring will also now support post-only orders.
For the uninformed, makers are those who place limit orders in the order book. Takers, on the other hand, remove orders from the order book.
Starting now, all maker orders will be reimbursed with 8% of the trading fee received from takers on the platform. This new fee schedule will apply to all maker orders on the platform. Previously, makers on the platform need not pay any fee. Now, they will receive a payment when a taker fills their order, even on transactions dating back to April 29.
The reward will be calculated daily at 11:00 am (UTC). Discount amounts greater than $5 in total will be paid out every month. Amounts lesser than $5 will roll over to the next month.
Why the Need for a New Fee Schedule?
Ensuring liquidity on any exchange is a huge task. With the huge influx of clients to DeFi protocols, keeping track of users and liquidity might prove to be quite difficult.
Ensuring your platform receives the right volume of visitors is quite important to its success. One way to drive traffic, visitors, and trades is to provide users with incentives. To do this, exchanges can give out a percentage of its trading fee to users. This is what Loopring aims to achieve with its recently revamped fee schedule. Takers on the platform will now have to pay an average of 0.2% as fees. This is still one of the lowest fees available in the entire DeFi sphere. Makers, instead of paying trading fees, will receive about 8% of the total takers’ fee.
Other Important Updates
Apart from its new fees scheduled, Loopring has also released details of several other updates on its protocol. The exchange recently introduced liquidity mining, as well as several trading pairs. The trading pairs include LRC/USDT, USDT/DAI, renBTC/USDT, and BZRX/ETH. To further improve liquidity, Loopring designed and launched two trading bots, making it possible for makers on the platform to deploy their assets.
More advanced trading options are expected to go live in the near future. Over the last few years, the platform has fine-tuned its zkRollup technical capability. The protocol aims to drive high-performance, low latency, no gas fees, and furthermore outperform its CEX counterparts.
Interestingly, Loopring has been referred to as one of the possible solutions to Ethereum’s outrageously high fees. This is majorly due to its zkRollup feature. Several important updates also recently took place on the platform, including its version 3.6 launch in August.
At the time of writing, Loopring (LRC) was trading at $0.176121, with a market cap of $209,210,648 and a 24-hour trading volume of $35,921,264.
Find out more about Loopring (LRC) on the Altcoin Buzz YouTube channel.