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Loopring, a decentralized exchange (DEX) platform has unveiled gasless transfers from Layer 2 (L2) to the Layer 1 (L1) environment. With Ether (ETH) fees prone to spiking during periods of peak activity, a lot of attention is moving towards L-2 adoption and allocating resources to sidechain protocols.
Gas-free L2-to-L1 Transfers on Loopring Wallet
Tweeting on Wednesday (Jan. 13, 2021), Loopring announced the release of a new feature that allows users to make L2-to-L1 transfers without paying gas fees. According to the announcement, the move was one of the most requested features by users.
One of our most requested features is live:
↔️ L2 to L1 transfers! ↔️
Send from your Loopring L2 account to *ANY* Ethereum L1. No more needing the recipient to already be on L2 🔥
Important for Layer-2 adoption 🌊
Currently enabled in the Loopring wallet only, not web. pic.twitter.com/LatavG0dzh
— Loopring (@loopringorg) January 13, 2021
With the feature enabled, Looprings users are no longer constrained by being only able to transact with fellow L2 protocols. Now, customers can move assets from their Loopring L2 accounts to any Ethereum L1 wallet. However, the feature is only available on the Loopring wallet for now and not on the web service.
Commenting on the feature, Loopring added:
“This means you can send a fast, cheap (gas-free) payment on L2 to your friend that has never even heard of L2, all you need is their Ethereum address (or ENS name)… then they – and only they – can access those funds via any portal/dapp that exposes Loopring L2.“
With the new feature in place, DEX users can now enjoy significant savings on gas fees when transferring assets from L2 to L1. On the subject of privacy, Loopring revealed that the transaction data is posted to the blockchain to offer robust security while not negating the built-in scalability of zkSNARKS compression.
The gasless L2-toL1 transaction announcement is also coming at a time when the Loopring (LRC) token is experiencing positive gains. Indeed, data from Coingecko shows LRC up by over 23 percent in the last 24-hour trading period.
The current price rise is in keeping with the token’s positive price action over the last one year with LRC up more than 1782% according to Coingecko data. As previously reported by BTCManager, the protocol launched zkRollup-based smart contract wallet for the Android platform.
L2 implementation remains a major focus point for DEX and DeFi users as ETH fee spikes can cause significant disruptions to the market. Back in Sept. 2020, the DeFi craze triggered a massive ETH fee surge that resulted in a new all-time high for transaction cost on the network.