✈Ethport: Loopring ⟺ L1/L2/CEX

Overview

  • Loopring zkRollup users can interact with L1 dapps directly from L2 cheaply by utilizing the power of batching and zero knowledge proofs.
  • Loopring now supports cheap and capital efficient cross L2 ⮀ L2 transfers.
  • Centralized exchanges (CEX) can easily support withdrawing directly to Loopring’s zkRollup using standard L1 functionality while still reaping the cost savings of L2. It’s also much easier for CEXs to allow users to deposit to a centralized exchange cheaper.
  • Ethport will be available as part of the Loopring 3.7 release in May 2021.

Problem

Our current zkRollup is great at doing transfers and order book/AMM trades on L2 cheaply. While transfers and trades are the things people want to do most often, they also sometimes want to do more complex things that requires them to interact with L1. With the current gas prices on Ethereum this is expensive.

Withdrawal costs for CEXs are also high, and with every L2 having its own particularities it’s not always easy for CEXs to have native support. A standard L1 interface, which hides all the implementation details while still proving the L2 cost savings, would be a big win.

More and more L2s are also live on mainnet each day, and users want to move between these without having to go through L1 by doing a withdrawal from L2 and then a deposit to another L2.

Even as more functionality is being migrated directly to L2 in the future, it will take a while before this is fully realized. Some (or even most) of the liquidity may even remain on L1 for the time being until the more general L2s are more mature. We need something that helps bridge (pun intended) this transitional period.

Solution

Doing as much work as possible on L2 is key to make things cheap enough so people ...

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To keep reading, please go to the original article at:
Loopring Protocol - Medium

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