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- Loopring ended DEX trading and launched a direct asset return process.
- Eligible users will receive assets directly without paying Ethereum gas fees.
- Two-week balance review precedes distributions for accounts holding ten dollars minimum.
Loopring has discontinued trading on its decentralized exchange and has rolled out a direct user asset return strategy. The project said it halted trading services in a statement posted on X, adding that it was in the process of setting up a structured distribution process for eligible account holders. The announcement marks the conclusion of one of Ethereum’s earliest zkRollup-based decentralized exchanges. However, the developers emphasized that their immediate priority is ensuring users receive their remaining assets through a simplified payout process.
The team said that Loopring failed to reach a critical mass of users to support its long-term business. Its initial zkRollup architecture was also not equipped with a virtual machine (VM), impacting the compatibility of smart contracts and limiting the potential for a wide range of payment applications. Further, the developers admitted they were paying more attention to engineering than to business development, which limited the growth of the ecosystem. They also mentioned large listings being removed from LRC exchanges in 2026 as another issue that hastened the decision.
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Loopring simplifies withdrawals through direct asset distribution
Loopring said there will be no need to create Merkle proofs and go through a complicated withdrawal process. The project will instead bundle eligible assets to the wallet on Ethereum Layer 1 associated with every Loopring Layer 2 wallet. The developers acknowledged that this method brings a more centralized process than what was initially envisioned in the protocol. However, it does do away with technical hurdles and there is no gas fee for users, and every distribution that is eligible gets to where it is supposed to be without any extra effort by the account holder, they said.
The team will release a full list of the final balances for L2 in the next few days, the announcement said. Spot token balances and liquidity pool positions will be included in the file for download. Also, all AMM balances will be translated into the respective token values before all calculations are done. Loopring will also make a smart contract upgrade to its DEX prior to distributions. The updated contract will be able to only let the whitelisted addresses controlled by the project transfer assets from the Layer 2 network. The team said this will help with the secure batch distributions throughout the payout process.
Review period begins before eligible payouts start
Each user will have two weeks to check their published balances, and to report discrepancies, if any. After that review, Loopring will start to transfer assets directly to valid wallet addresses of Ethereum. Accounts that have a final balance of $10 or more will be considered for automatic distribution. Moreover, the project hopes to finish the process in a few weeks, and it will continue to update the process on its official X account.
E-mail support will also be available from when the balance list is published. With the closing of Loopring’s decentralized exchange, the asset return program is now the project’s last priority. The team stated that it will continue to fulfill all possible deliveries, but will end the platform’s operations in an orderly manner.
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