[LRC] MIP6 Collateral Onboarding Application

[LRC] MIP6 Collateral Onboarding Application for Loopring Token

  1. Who is the interested party for this collateral application?

@monet-supply

  1. Provide a brief high-level overview of the project, with a focus on the applying collateral token.

Loopring is a zkRollup based DEX and asset transfer protocol built on Ethereum. Each trade through the protocol incurs a small fee, which accrues to LRC holders through a staking system. Additionally, operators running DEXes atop Loopring are incentivized to stake LRC to reduce their costs.

  1. Provide a brief history of the project.

Loopring was started in June 2017, and performed a public token sale in August of 2017. To date, there have been 4 main versions of protocol, version 1, 1.5, 2, and 3 (current version). Loopring recently released Loopring Pay, which uses their underlying zkRollup infrastructure to support ETH and ERC20 transfers in addition to DEX trading.

  1. Link the whitepaper, documentation portals, and source code for the system(s) that interact with the proposed collateral, and all relevant Ethereum addresses. If the system is complex, schematic(s) are especially appreciated.

Whitepaper: (v1 and v2, now deprecated) https://loopring.org/resources/en_whitepaper.pdf

(current) https://github.com/Loopring/protocols/blob/master/packages/loopring_v3/DESIGN.md

Documentation: https://github.com/Loopring

Website: https://loopring.org/#/

Source Code: https://github.com/Loopring/protocols/tree/master/packages/loopring_v3/contracts

LRC token: https://etherscan.io/token/0xbbbbca6a901c926f240b89eacb641d8aec7aeafd

  1. Link any available audits of the project. Both procedural and smart contract focused audits.

https://medium.com/loopring-protocol/secbit-delivers-a-security-audit-report-for-loopring-protocol-3-0-a768c2bd061a (Audit report available for download in article)

  1. Link to any active communities relating to your project.

Twitter: https://twitter.com/loopringorg

Reddit: https://www.reddit.com/r/loopringorg/

Telegram: https://t.me/loopring_en

Discord: https://discord.com/invite/KkYccYp

  1. How is the applying collateral type currently used?

LRC can be staked at staking.loopring.org in order to claim a share of 70% of Loopring’s protocol fees. Fees received are proportional to both amount of tokens staked and time staked, encouraging users to lock up for longer periods.

In the future, there is a plan to launch a Loopring DAO to manage the protocol. Currently, 20% of protocol fees are reserved for use of the future DAO.

  1. Does one organization bear legal responsibility for the collateral? What jurisdiction does that organization reside in?

LRC is a decentralized token. No organization bears legal responsibility for LRC and LRC is not connected to any off-chain assets.

  1. Where does exchange for the asset occur?

LRC is traded on centralized exchanges such as Binance, OKEx, Bittrex, and Bitfinex, as well as decentralized platforms such as Kyber, Uniswap, Balancer, and Loopring.

  1. (Optional) Has your project obtained any legal opinions or memoranda regarding the regulatory standing of the token or an explanation of the same from the perspective of any jurisdiction? If so, those materials should be provided for community review.

I am not aware of any publicly available legal opinions addressing the project or token’s regulatory standing.

  1. (Optional) Describe whether there are any regulatory registrations for the token and provide related documentation (including an explanation of any past or existing interactions with any regulatory authorities, regardless of jurisdiction), if applicable.

As far as I know, LRC is not registered with regulatory authorities in any jurisdiction.

  1. (Optional) List any possible oracle data sources for the proposed Collateral type.

Centralized exchanges from (9) may offer price feeds for LRC.

  1. (Optional) List any parties interested in taking part in liquidations for the proposed Collateral type.

n/a

Disclosure: I hold LRC

10 Likes

@monet-supply,

thank you for doing this for the community. I can’t really find any reason for not having LRC as Vault collateral. Staking tokens such as LRC should in theory rather quickly find their appropriate price level, the only concern being liquidity.

4 Likes

Thanks @monet-supply for submitting this. I am Matthew from Loopring team, and just wanted to express the team’s interest and support for this :). If there are any questions, would be glad to address them. Although it seems Monet really did a superb job providing all the relevant info. Thanks a lot!

4 Likes