Loopring
Low risk — battle-tested zkRollup DEX with strong Ethereum security, excellent documentation, and long track record, but facing competitive headwinds.
Top Risks
1
zkRollup relies on centralized sequencer — single point of liveness failure
2
TVL declined 96% from peak, indicating user attrition
3
Competition from newer zkRollup L2s may further erode market share
4
LRC staking regulatory risk as potential securities classification
Risk Breakdown
Frequently Asked Questions
Is Loopring safe to use?
Loopring receives a B risk grade (23/100) from Hindenrank, where lower scores indicate lower risk. Low risk — battle-tested zkRollup DEX with strong Ethereum security, excellent documentation, and long track record, but facing competitive headwinds. Loopring is a pioneering zkRollup Layer 2 DEX on Ethereum offering both AMM and orderbook trading at up to 2,025 TPS. With $12M TVL (down from peak), it provides Ethereum-level security with L2 speed. LRC holders stake for fee revenue and governance. 4+ year track record but faces competition from newer L2s.
What are the main risks of using Loopring?
The key risks identified for Loopring are: (1) TVL declined 96% from peak, indicating thinner liquidity (2) Centralized sequencer — if it goes down, you cannot trade until restored or force-exit to L1 (3) Competition from newer L2s may continue eroding market position
What is Loopring's risk score breakdown?
Loopring scores 23/100 across eight risk dimensions: Mechanism Novelty: 3/15, Interaction Severity: 3/20, Oracle Surface: 0/10, Documentation Gaps: 0/10, Track Record: 3/15, Scale Exposure: 3/10, Regulatory Risk: 4/10, Vitality Risk: 7/10. The highest risk area is Vitality Risk at 7/10.
How does Loopring compare to other DEX protocols?
Among 111 rated DEX protocols on Hindenrank, Loopring ranks #10 by safety (lowest risk score = safest). Its 23/100 risk score and B grade place it among the safer DEX protocols.
Has Loopring ever been hacked or exploited?
Loopring scores 3/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.
Incident History
1incident|$5Mtotal losses
Last scanned 2026-02-26