Ethport: Loopring and L1/L2/CEX bi-directional routes

Loorping zkRollup users can take advantage of batch transactions and zero-knowledge proofs to interact directly with L1 dApps at L2, cheap and fast Loopring now supports cheap and capital-efficient L2-L2 two-way transfers Centralized exchanges can use standard L1 functions to transfer funds It is directly withdrawn to Loopring's zkRollup, and the cost can also be kept at a low level of L2 transactions. It will also be easier and cheaper for users to deposit funds directly into centralized exchanges from Loopring. Ethport will launch in May 2021 as part of the Loopring 3.7 release. Our current zkRollup does a good job of reducing transaction costs for transfers and order book/AMM transactions. However, although frequent transfers and operations are what users often do, sometimes, they also want to do more complex things that require interaction with L1. But the gas fee for sending transactions on Ethereum is very expensive. The same is true for withdrawals from centralized exchanges. In addition, each L2 has its own characteristics, so it is not so easy for CEX to support direct withdrawals to L2. If there is a standardized L1 interface that can hide all implementation details while maintaining the low cost of L2 transactions, everyone must be happy. Nowadays, many L2s are launched every day, and users also hope to transfer money between L2s without going through L1, because that is extremely cumbersome (withdrawing money from one L2 to L1 and depositing another L2). The value of Tether’s consolidated assets is slightly higher than 66.4 billion US dollars, and its exposure to commercial bills has dropped by 58%: Golden Finance News, accounting firm BDO Italia has completed an audit of Tether’s assets and issued independent certification information for its previous quarter’s performance. The audit found that Tether held combined assets worth just over $66.4 billion. Total consolidated liabilities are close to $66.2 billion, nearly 99% of which are related to digital currencies. Tether has previously said it will reduce its commercial paper holdings by the end of August 2022. The audit report showed commercial paper exposure fell 58% to $8.5 billion from $20 billion in the previous quarter. Tether's chief technology officer, Paolo Ardoino, said on Twitter that the company intends to continue reducing its holdings of commercial paper, reducing its holdings to zero by the end of October. He said, "Tether will continue to be supported by the transparency of its reserves, and (reserves) have been the main source of stability, which allows us to build a tool for the global economy." (btctimes) [2022/8/30 12:57 :34] Even if more functions will be implemented directly on L2 in the future, if these problems are not resolved, it will be embarrassing. Some (if not most) of the liquidity will remain on L1 until the more general L2 becomes more mature. We need something to bridge the way (pun intended) through this transition period. Handing over as much work as possible to L2 is the key to reducing user costs. Generally speaking, we can (on L2) bundle many transactions together and upload them to the chain, so that the gas cost of L1 can be shared among these many transactions. L2 transactions are used to perform actual functions, and only one L1 transaction can meet the needs of all users, which greatly reduces Gas overhead. Etherscan adds "View NFT" and "Contact Holder" functions: On February 17th, the Ethereum block browser and data analysis platform Etherscan added "View NFT" and "Chat with Owner" functions. Etherscan adds a new "View NFT" button for all NFT transactions, and users can click to view NFT details. In addition, the NFT details page supports the "Chat with Owner" function, and you can click the button to contact the NFT holder through Blockscan Chat for communication. According to news last month, Blockscan, the team that created the Etherscan blockchain browser, released the beta version of "Blockscan Chat". The information disclosed on the homepage of the website shows that Blockscan Chat is a messaging platform where users can easily and instantly send messages to each other through wallet-to-wallet. [2022/2/17 9:57:15]zkRollup is very, very suitable for solving this problem, because the state of L2 is immediately finalized as the relevant computational validity proof is submitted to L1. Not only does this mean that operations like withdrawals can be done with one touch, but L1 transactions can use data on L2 immediately without worrying about invalid state transitions getting mixed in and requiring rollbacks to the L2 state. Usually, the ideal solution is based on the specific problem and the user experience we want. Let's take a closer look at what's in Loopring's toolbox, what problems each can solve, and then explain how to present them to the user. The 24-hour net capital inflow of ETH is 1.608 billion yuan: Jinse Finance monitoring data shows that the top three 24-hour net capital inflows in the cryptocurrency market are [2020/10/5] This is also the current realization stage of Loopring. We rely on dedicated liquidity providers to provide liquidity for L2. Of course, sometimes these liquidity will be used to complete the matching within the user. For example, if someone wants to deposit money into a certain treasury contract, and another person wants to withdraw money from the contract, then let them become counterparties directly, so that at least one user can achieve his goal. The ideal situation is that users can match transactions with each other, but users' needs are unpredictable and cannot always be completed within a short enough waiting time. The disadvantage of this approach is that liquidity providers can only use a small part of their own funds. And it is also necessary to ensure that funds are available at all times. zkRollup is already very suitable for this type of liquidity provider, because capital does not need to be locked for a long time (both deposit and withdrawal are fast), and even small amounts of funds can be recovered and reused quickly. However, this is not the optimal form of capital efficiency, and we can do better. Due to the high volatility of ETH prices, the DeFi stablecoin protocol Lien postponed its initial public offering: On the evening of September 6, the DeFi stablecoin protocol Lien (LIEN) announced that due to the high volatility of ETH prices, the official postponement of the initial public offering was scheduled for September 7th, Beijing time. 21:00 ICO on FairSwap. The official stated that users cannot safely mint stablecoin iDOL under high volatility conditions. Once the volatility of Ethereum price decreases and stabilizes, they will continue to consider the time when LIEN tokens will be launched on FairSwap, and notify users at least 24 hours in advance . [2020/9/7] To solve the problem of capital efficiency, we can use lightning minting on L2 (we have been thinking about it for almost a year). If each token can be flash minted on L2, we can get any required amount: lightning mints the number of tokens required for all users to match, so all currency transactions can be completed on L2 (can match thousands transaction) complete all transactions on L2 at a predictable exchange rate, take out the tokens collectively sold by all users at one time, use these tokens to do L1 transactions, and obtain the real tokens that L2 users want to buy, use these tokens to repay the flash loan if The exchange rate of currency transactions on L2 is completely determined, and L1 transactions will never fail (such as ETH/WETH, or any contract that only the L2 itself can interact), then this method is perfect. But if: BTC, USDT and ETH account for as much as 90% of the real transaction volume: Massari data shows that among the top ten cryptocurrency assets, Bitcoin, USDT and Ethereum account for as much as 90% of the real transaction volume , and a year ago this proportion was only 75%. The data shown in the chart shows that the transaction volume of Bitcoin and Ethereum has remained stable recently, but USDT’s share of the transaction volume has been rising rapidly. Earlier news, The Block data showed that the total issuance of stablecoins reached a record high of 10.4 billion U.S. dollars, surpassing 10 billion U.S. dollars for the first time. The market share of volume ranks first, and USDC ranks second with a 7.2% share. [2020/5/14] Large fluctuations in exchange rates, unpredictable (very common situation) L1 transactions that need to be executed may fail (for whatever reason) This is the risk that makes Lightning Coin unable to repay. If the Lightning Coin cannot be repaid, there is no way to send the block to the main chain because it is invalid. This means that we have to roll back all transactions on L2, create a new block with new transactions, and generate new zero-knowledge proofs... Although it is acceptable in theory, we definitely want to avoid this situation in practice . To solve the prediction problem, we can complete the transaction in two steps. In the first stage, we first collect all users' funds and arrange them into a treasury contract dedicated to currency swaps. Instead of directly delivering the token the user wishes to buy, we give the user a token representing his share of the vault (at a fixed 1:1 ratio). Then you can wait for the L1 transaction to be completed, and the actual exchange rate can also be observed. In the second phase, the tokens received by the substation can be distributed proportionally to all users in the next block. A bridge is a more robust design than a substation, but the cost per transaction for the user will also be higher due to the additional L1 charges. Not only can the bridge support batch currency swaps like a substation (and in a more flexible way), it also supports those L1 operations that cannot be abstracted into a currency swap transaction. The bridge also enables efficient Loorping user onboarding operations by bulk depositing. Users do not have to deposit money into zkRollup individually. The batch deposit function can be implemented directly on L1 using a standard smart contract, and users can enter the L2 world in batches. This way, expensive L1 token transfers can be reduced to one transfer per token, which can then be distributed on L2 with much cheaper L2 transfers. This also makes it easier for centralized exchanges to use standard L1 infrastructure to support Loorping. The bridge also enables users to initiate L1 transactions on L2. First, the funds for all these transactions are collected into a bridge account on L2 (to minimize the number of L1 token transfers); then, in the L1 bridge contract (which is also the owner of the L2 bridge account) we run All transfers sent to the bridge (by using "conditional transfers", where the condition is that the transfer has been processed by the bridge contract). Let the user add additional data when signing the transfer, and the bridge knows which L1 operations the user wants to do with the provided funds. The bridge classifies the user's transactions into batches according to the type of L1 transactions, and then sends the batches of transactions to the corresponding type of connector (connector). These linkers are simple contracts that do conversions on all user transactions and batch transactions. The bridge provides a common interface that allows users to connect to any connector contract, even if you don't know what the connector does, it doesn't matter! Each user can provide customized data for the connector (what kind of data can be accepted depends on the connector itself), that is, although the user's transaction is processed in batches, the operation can be customized of. For example, if a group of users want to exchange currency on Uniswap, each user can set the slippage they are willing to accept. Connectors can perform actions only for those users whose slippage requirements are met, but return without action for other users. Another example is cross-L2 transfers: a user can set an address on another L2 where TA's funds want to go. Some transactions will need to return funds to users on L2, others (such as simply transferring funds to another rollup) will not. The linker will use the same batch-in functionality to do all of this, whenever needed. Ethport is a user-friendly product built on the above design. Use as much liquidity as possible on L2 If there is an optimal substation and it is available, it will go to the substation, batching all similar L1s to keep costs as low as possible If none is available, use a common bridge Generally speaking , users will need to wait for a while until enough users want to do similar operations, or another user/liquidity provider indicates that they can help the transaction to be completed faster. We call the generic dApp integration module a "terminal", and each individual, batch-processable operation within a terminal a "gate". For example, if a user wants to deposit ETH into the Yearn ETH vault, TA needs to run to the Yearn terminal and wait for TA's transaction to start at the ETH gate. We will gradually add terminals and doors according to the needs of users. Loopring is sponsoring two challenges (one directly related to Ethport) with prizes totaling $5000: Use a Looping bridge/substation to efficiently connect to another L2 or interact with another L1 dApp Develop a new block using a new Looping subgraph Browser front-end jump to this page, learn more, and then support your latest and latest L2/L1 dApps! Loopring is a zkRollup protocol on Ethereum, dedicated to scalable and secure exchange business and payment business.

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