Loopring: Decentralized Token Exchange Protocol
This document outlines the Loopring protocol, a framework designed to build decentralized token exchanges that aim to address the limitations of both traditional centralized exchanges and existing decentralized solutions. Key aspects include an off-chain order management system combined with on-chain settlement for improved performance and security. The protocol utilizes a novel approach called "order rings" which allows for mixing and matching multiple orders in a circular trade, significantly enhancing liquidity by overcoming the constraints of two-token trading pairs. Furthermore, Loopring introduces a mechanism called Dual Authoring to prevent front-running, a common issue in decentralized exchanges. The protocol's native token, LRx (such as LRC on Ethereum), is used for fees and will play a role in decentralized governance for future updates.