Recently, I published an article about Loopring Earn, an Ethereum Layer-2 that gives you all the tools to become your own bank. If you missed it, you can still read my article about Loopring Earn here
With $LRC staking another long-awaited feature gets added to Loopring Earn. Let me give you a brief update on $LRC Staking.
$LRC is the native token of the Loopring protocol and can be used for voting on changes in the protocol, paying reduced trading fees on the DEX, and paying rewards for providing liquidity on the DEX. Loopring itself is a zkRollup protocol that sits as a second layer on top of the Ethereum blockchain and tries to fix the current issues like high transaction fees and long transaction times.
With the help of Loopring, you can enjoy scalable and secure exchanges and payments at low costs and fast speed on top of the Ethereum blockchain.
The new $LRC staking feature that has been added to the Loopring Earn section will allow you to earn rewards by locking up your $LRC tokens, starting on the 1st of April. 45% of Loopring protocol fees are being allocated as staking rewards.
After the approval of the DAO staking proposal, some significant changes to the distribution of the protocol fees had been made. Now 45% are allocated to Liquidity Pools in qualifying AMM pools, 45% are allocated to the $LRC staking reards pool, and 10% are allocated to the Loopring DAO.
How To Stake $LRC?
Staking $LRC is as easy as making yourself bread with butter. Simply access Loopring Earn via the DEX on the website or via the Loopring Smart Wallet. All you have to do is enter the amount that you want to stake and start earning staking rewards. If you already have your fund on Loopring Layer-2 then you don't even have to pay any gas fees.
You can stake and unstake your $LRC tokens anytime but to be eligible for staking rewards, the tokens have to be staked for at least 90 days. The 90 days lock-up period may be reduced in the future.
The $LRC staking rewards are calculated on a daily basis and based on the previous day’s protocol fee amount. The APR is yet unknown until the 1st of April but I am already excited how high it may be. You can already stake your tokens now to start farming rewards right from the beginning.
My Final Words
I hope that I could provide you with some helpful information about Loopring Earn and the latest addition $LRC staking which is an innovative way to engage with and profit from the growth of the Loopring Layer-2 ecosystem.
Suppose you like to keep yourself up to date about the latest developments on Loopring. In that case, I recommend signing up for Loopring’s Quarterly Update and following Loopring on their various social media channels:
You may also like: "Say Goodbye To Centralized Finance And Become Your Own Bank With Loopring Earn
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