Loopring Exchange Liquidity Mining

Matthew Finestone
Loopring Protocol
Published in
4 min readJun 9, 2020


Loopring Exchange will begin to hold one-month liquidity provision (market making) campaigns — otherwise known as liquidity mining. The first campaigns are for supporting two trading pairs: LRC-USDT and ETH-USDT; there will be a reward pool of 6000 USDT, split between both trading pairs.

Time period:

One month. 12:00 PM on June 15 to 12:00 PM on July 14 (Beijing time)

[Update: liquidity mining campaigns have become a continuous feature for rewarding liquidity on Loopring.io. You can learn more about it here.]


We refer to Hummingbot’s liquidity mining concept and reward schema, where any trader who adds liquidity to our orderbook exchange (places resting orders on the book) is competing for a pre-specified pool of funds. We measure traders’ liquidity contribution through the following three indicators, and issue rewards in proportion:

1. Spread: Market price = (bid price + ask price) / 2; Spread = ABS (order price-market price) / market price. We implement a spread density function to closely tie spreads to rewards. The reward decreases exponentially as the spread increases.


2. Order size: Rewarding market makers for order book depth. Market maker compensation is set in direct proportion to the market maker’s order size, scaled by the spread factor. For example, a $100 order will earn 2x the rewards of a $50 order.

3. Order balancing: We encourage orders to reach an equilibrium state. If the volume of buy orders is much larger than the volume of sell orders, to reach an equilibrium, we will give the traders of the sell order higher rewards. For example, if there are $10k in bids and $5k in asks, an ask will earn 2x the amount of a bid.

Further details

  • We will give a mining reward of 3,000 USDT for each trading pair: LRC-USDT and ETH-USDT.
  • The rewards will be evenly distributed across each hour of the month long period.
  • A maximum spread of 1% will be set. When there is any change in the order book within the range of 1% across one hour, we will calculate the contribution value of each order within the range of 1% at this time.

Participants can check the rewards and rankings on Loopring Exchange in real time. The accumulated rewards will be distributed after the event is completed on July 14. Rewards will be payable if more than 1 USDT has accrued.


So please get on Ethereum’s zkRollup Exchange, and see how you can trade on a scalable, high-performance orderbook DEX. As mentioned in the API release, Loopring.io can support programmatic traders and strategies of all sorts, including HFT. Further, you trade with the lowest fees around: -0.02% maker (yes, a rebate, meaning you earn to trade) and 0.06%-0.25% taker. And of course, as a zkRollup, no gas fees needed to trade or place orders. Loopring Exchange API: https://docs3.loopring.io/en/

If you want to trade and liquidity mine on Loopring with a ready-built bot, with ready-built strategies, check out the Hummingbot connector. You can also run your bot on the VNPY framework which we’ve integrated. Anyone is free to trade on Loopring.io and compete for these liquidity rewards. Traders through API, through these bots, as well as ‘normal’ traders on the UI. Anyone who leaves an order on the book.

[Update: you can find even more market making/trading bot software that is connected to Loopring Exchange here.]

If you have any questions on liquidity mining, join our Discord.

Keep an eye out for more liquidity mining launches. Several new trading pairs and AMM pools will be listed, with reward pools for liquidity providers along the above rules. You can keep track of new liquidity mining opportunities by following us on twitter, this blog, or the liquidity mining dashboard.

About Loopring

Loopring is an Ethereum zkRollup protocol for scalable, secure exchanges & payments. Loopring builds non-custodial, high-performance products atop our Layer-2, including the Loopring Wallet — a mobile Ethereum smart wallet, and the Loopring Exchange — an L2 orderbook and AMM DEX. To learn more, you can sign up for our Monthly Update or see Loopring.org.