Loopring: Rise of the SuperApp

Transcript

how's everyone doing um very excited to be here at Montenegro right now guess I'll wait for the slides um hi my name is Adam I've been working with Loop ring for two years now um and today I'm going to give a talk on vertical roll-up products the need for layer two applications and our super app the loop ring wallet um but first i'm going to give a bit of a background on our roll up there we go

um so we built a application specific roll-up um we're the longest running roll up on Loop on ethereum we launched in February of 2020 and we've been around for six years we originally started as an order books Dex protocol on ethereum and built our roll up to scale our order book and now we do a lot more than just order books we support nfts gaming defy and payments and we've settled just under six billion dollars of total trading volume on our layer 2.

and what makes us different from other Roll-Ups is that we control the entire stack we've built every component ourselves from our open source ZK roll-up protocol to our relayer that handles all the off-chain duties that makes our roll-up run and to the products built atop like our non-custodial Exchange loopring.io and our smart contract wallet the looping wallet and we've done all this work and built across the stack to custom fit and optimize oh there we go optimize our Loop ring applications

um one sec and this is what makes Loop ring a bit of a different Beast we are builders on top of Our Own Roller I know that app chains are very hot right now you can consider Loop ring to be the first app chain and really a front row seat into our app chains and layer threes will be built up so what's new on Layer Two scalability um we solved it right Roll-Ups are here but not enough people are going to them

we've got you know these airdrop Hunters going from one chain to the next and that's great but we finally have you know this expanded design space that allows applications to flourish on Layer Two that's just not possible on layer one um so why aren't more people using roll ups for one ux it's it's hard right it's not easy as a user to live in this multi-roll-up world there's a ton of layer twos and I have to choose which one am I going to go to which tokens should I on board with and yeah wallet providers don't really make it easy on

me um either switch rpcs when you go from one network to the next it's all very cumbersome self-custody it's still complex right um convenience is key and I think we've seen this week that you know it is still hard to do self-custody um like I would love nothing more to you know be at Thanksgiving dinner and say hey give me your phone download this wallet without having to intimidate my in-laws we would love to get to the point where anyone could download a wallet without having to ask for 24 words oh you know you got to get this paper and this pen write it down split

up these Keys give one to Grandma another tier Aunt no the next wave of crypto users will not stick around for this so we see it as you know two problems apps or ux and apps specifically and yes we need Layer Two killer applications if we want to Spur roll-up adoption right now there's a ton of scale and not a lot of use case there's a lot of like infrastructure that's being built we have rollups as a service you know is now a thing we have dop stack and it's all great um but you know we have a ton of layer

twos that are coming online it's a lot of block space and you know we need consumer layer two applications and wallets to makes roll-up shine so this is what Loop ring solves everything that we do at Loop ring is in the name of ux from our roll up to the apps built atop we make ethereum easy to use we started out as this order book Dex protocol and built our roll up to scale it and now we're kind of solving our own problem again we are building applications to bring in the masses and I understand that every app is bringing in the masses

but we're in a unique position to actually do something about it about it we can tailor The Experience because we control the entire stack um so with all this block space we want to fill it up with you know a super app and this is our layer 2 smart contract wallet um so we built the first L2 smart contract wallet on ethereum it has ZK and social recovery baked into the experience and it really is this Mobile Gateway to Layer Two Services where you know gas is abstracted from The Experience um and yeah like very low fees to

transact to trade to stake in everything you else you want to do in um you know web3 so I think you guys know but this you know this wallet it's not a normal eoa address it is a smart contract which gives it some cool properties um we have a the private key is decoupled from the address which um if your key is ever exposed you could replace it we have meta transactions you could pay for gas with other tokens then eth we have multi-call operations you could batch together commands it's 100 non-custodial and shortly we will be supporting

erc4337 which will further decentralize a lot of our operations um so these you know social recovery and smart contract wallets they offer better ux but they also have upgraded security features and it's important because self-custody is complex and we see it every day on you know crypto Twitter these nightmare stories another wallet gets drained and it's terrible to see um and the problem really lies with eoa wallets not only are you know these seed phrases a single point of failure but the ux is messy

like I think we can all agree um you have to write down these words onto a piece of paper and just the whole time you're thinking you know what is going to go wrong um and not to mention it's just you know a ton of mental overhead to remember everything so social recovery um back one side but yeah social recovery it removes the complexity from self-custody by replacing seed phrases with guardians and now these Guardians are your security team they could be anyone from an institution family friends that you choose or wallets that you own and if your phone is ever lost you could then you and your security

team could then lock this wallet and replace it onto another device um so the looping wallet is this you know personal Vault we have Theft Protection bunch of safeguards whitelisted addresses 2fa security daily limits you could set you know let's just say 0.1 as your limit that's like the maximum amount that it can you know move out of the swallowed in a day and you know in the event that your wallet is ever compromised and this attacker were to bypass 2fa security in this they can only take that daily limit in a 24-hour period which buys you and your security team time um so we you know we have cheap fees we

have security but it's not enough um we need to be able to do something useful uh with this wallet and this is where kind of the loop ring wallet shines we have a ton of ZK applications baked into the experience it really is this One-Stop shop we have nfts if you want to trade we have an order book amm payments if you had on-ramps um Loop ring earn this is you know various ways to earn yields if you want to stake eath using Lido or rocket pool you could also stake lrc and earn some protocol fees you can LP you can Market make if you want to express yourself with another I guess Financial tool we

have options um and this we like this is dual investment which is a very popular centralized exchange product that we now brought to kind of like a self-custodial I guess mode um so if you know all you centralize exchange traders that love this feature you can now be your own bank and access you know dual investment just this week we launched block trade and this is our OTC trading feature so liquidity on demand it's a huge Advantage um and it's a problem you know sometimes on Roll-Ups you're not always going to get your desired liquidity so with block

trade you are able to tap into multiple sources of liquidity without having to sacrifice self-custody you're able to tap into centralized exchange liquidity without having to put your assets on a sex in the future soon you'll be able to tap into defy liquidity without having to touch a vulnerable Bridge contract um and this is part of our D5 Port design which leverages our locked asset feature so when you're on our wallet you know and you want to make a swap on our amm you see that there's not you know desired or sufficient liquidity we

inform you hey you can get a better price um using block trade and once you do that you know you see the price it looks good you sign the transaction and then market makers are able to fill it within seconds if not milliseconds so we believe giving users the best you know convenience liquidity On Demand is a huge advantage and we think we can convert you know a lot of centralized exchange traders who now want to you know be their own bank so Loop ring also supports nfts we have minting trading and transferring of ERC 721 and 1155 and we just launched our red packet

feature this month and what these red packets are it allows anyone to send an nft or an erc20 in Mass for very cheap costs using a QR code and now that anyone could go find this QR Code online offline wherever scan it claim it and then own it and it you know not like very novel but we think this could be a game changer in the sense that the nft experience on layer one is broken um it's you know transaction costs are way

too high to transact with nfts to send a simple ERC 1155 on ethereum is around 51 000 gas that same transaction on Loop ring is 175th the cost 700 gas and the beauty of loop ring is that you can mint a million nfts for under a dollar but it becomes very expensive when you want to move a million nfts to a million different addresses it's you know 700 gas times a million which becomes very expensive roughly a hundred thousand dollars but this is where red packets come in

it doesn't matter if you're moving one you know nft or a million it only costs that one nft Transit transfer cost that's 700 gas and then users that want to claim it they pay uh you know a couple of pennies to claim this nft so we've brought the nft distribution costs down to near zero and we think a ton of applications will open up one that makes sense is just like gaming it's a natural fit um you know the economics make sense that anyone could create their Pokemon go like experiences um we launched this like three weeks ago

everyone's been sharing in our community these red packets on Twitter and on Discord it's been very cool to see and one thing that we did see is that just hunting for QR codes is this viral social game that you know it levels up any distribution so whether you're doing an airdrop a loyalty reward program using red packets does gamify kind of the experience um one more thing we also have this blind box mechanism so picture you know I'm a game developer and I just want to send one nft and say it's like very valuable call it a Milady um and I wonder you know reward one person let's say a hundred people

leveled up in my game and I give them all a ticket using these red packets but only one person wins this is exactly what Spike of Spike Roll-Ups built the week we dropped this he created you know this on-chain Loop loot box um and you know added this another layer of incentives to his game which was really cool to see so we're excited to see you know Builders Gamers experiment with this red packet if you are building a game please reach out to me um and yeah our wallet's going multi-network um we're gonna go where the users are right now we're deployed on ethereum we're gonna go to Tycho next they're a very

cool generalizable layer twos okay ZK evm project they're launching their test net A3 will be there arbitrum will be there um optimism will probably be there too and you know the one I guess hurdle for smart contract wallets is it's very expensive to deploy these contracts on ethereum with guardians it can cost anywhere right now from you know 50 to 75 dollars but once we're able to deploy this Loop ring wallet on a generalizable layer two with um post

eip4844 it's going to be negligible to spin up you know as many smart contract wallets as you want you know a couple dollars if not pennies so we're excited for all the wallet you know smart contract wallet and account abstract and builders in this space we think it's going to be a huge moment of adoption um I'm Gonna Leave You with this uh it's a Reddit packet please take a screenshot of this download the loop ring wallet and you know scan the code once you do there may be a valuable nft in there um and yes thank you guys for coming to my talk

thank you