Loopring, an open-source protocol for building high-performance decentralized exchange on Ethereum is undergoing some major updates. According to the official announcement, Loopring Exchange v1, the first zkRollup DEX on Ethereum will transition to v2. The v2 is built atop the new Loopring protocol (v3.6). Moreover, it remains disconnected from the previous version that supported v1. As a result, once v1 enters into the withdrawal mode, the users will have to move their asset holding on v1 to Ethereum (Layer 1).
On 1 January 2021, the project will disable asset deposits, transfers, and trading on exchange v1. While the withdrawals will remain open via the v1.loopring.io web application till 1 February 2021, the rest of the pending transactions will automatically stand canceled.
As per the official blog, on 1 February, v1.loopring.io will go offline, the relayer will shutdown and APIs will not be accessible. Thus, the exchange will enter the withdrawal mode officially.
What happens to assets that remain on v1 post 1 February?
The team strongly recommends Exchange v1 users to withdraw their asset balances. The users can withdraw the assets to the new Loopring Exchange v2 or to Loopring Wallet. In case a user misses moving the funds, the assets will continue to be in his possession. In fact, they will remain available in an exchange deposit contract on Ethereum.
Furthermore, to claim these assets post-shutdown, the users will have to submit the account’s Merkle proofs. Moreover, the team will help users generate Merkle proof for each token. However, there could be delays in response as the team is about to nose dive into product development.
LRC Price
LRC, the native token of Loopring is facing a little tough time. In the last 30 days, the LRC token has dropped by 3% and at the time of press is trading a little over $0.17.