[DigitalToday reporter Chi-gyu Hwang (황치규)] Loopring, Ethereum's first zk-rollup (zkRollup) project, has closed its decentralised exchange (DEX) service, The Block reported on Sunday.
According to the report, Loopring said on social media platform X (Twitter), "We were the first zk-rollup, but without a virtual machine we could not create composability or real payment use cases," and added, "Because of those limitations, the ecosystem could not grow."
It acknowledged that its zkEVM architecture also lagged behind newer solutions that are fully compatible with Ethereum smart contracts.
It said a lack of business development and external pressures, such as delistings of its native token LRC from major exchanges, also influenced the decision to shut the service.
Loopring said it will refund user assets directly and cover all transaction fees in full.
It plans to publish a full list of final Layer 2 balances within days. After a two-week review period, it will upgrade the Loopring DEX smart contract so that only team-controlled whitelisted addresses can withdraw assets from Layer 2.
Chi-gyu Hwang
delight@d-today.co.kr