Loopring (Ethereum’s first zkRollup project) announced on June 28 that its decentralized exchange has permanently ceased all trading services effective immediately, with the relayer going offline simultaneously. Loopring commits to covering all gas fees and directly sending assets to users’ L1 wallet addresses, eliminating the need for users to submit Merkle on-chain proofs themselves.
Reasons for Loopring’s Closure: Insufficient Market Adoption, Lack of Composability in Architecture, LRC Delisting, and zkEVM Competition
Loopring explained the reasons one by one in the announcement:
First, the project never achieved effective market adoption; as an early zkRollup, its architecture lacked virtual machine support and composability, hindering ecosystem development.
Second, the team admitted being “engineers at heart, not business operators,” more adept at technical development than commercial expansion.
Third, in 2026, LRC was widely delisted by major trading platforms, further accelerating the trend.
Fourth, modern zkEVM solutions are fully compatible with Ethereum smart contracts, making Loopring’s specialized design architecture appear outdated.
Loopring stated in the announcement: “Rather than continuing to run a hollow service, we chose to terminate it gracefully.”
Refund Process: Final Balance List to Be Published Soon, Batch Distribution After Two-Week Review
The refund process has been clearly outlined in the announcement:
· The final balance list for all users will be calculated and published soon; AMM positions will be automatically converted into underlying tokens and included in the final balance, with no need for users to redeem them manually.
· The list will remain publicly available for two weeks for user review; inquiries can be sent via email to help@loopring.org (available after the list is published).
· The Loopring DEX smart contract will be upgraded to a version that only allows whitelisted addresses to withdraw assets, enabling batch distribution and preventing interference.
· After the two-week review period, assets will be batch-sent directly to users’ L1 wallet addresses; accounts with a total balance below $10 are not eligible for distribution; the entire distribution process is expected to be completed within a few weeks after initiation.
· Users do not need to take any on-chain actions; all gas fees will be covered by Loopring.
Loopring Is Ethereum’s First zkRollup Project, Relayer Has Gone Offline Simultaneously
Loopring describes itself as being “composed of programmers who firmly believe zero-knowledge proofs can scale Ethereum,” having built the first zkRollup, a technological achievement it says it remains proud of.
Designed with user protection at its core, Loopring chose a graceful exit by directly refunding users rather than requiring them to submit Merkle proofs. The relayer went offline simultaneously on June 28, 2026.
Frequently Asked Questions
How can Loopring DEX users retrieve their assets?
Users do not need to take any action. Loopring will cover all gas fees and directly send assets to users’ L1 wallet addresses (the Ethereum address associated with the user’s Loopring L2 account). The final balance list will be published soon, and batch distribution will begin after a two-week review period; AMM positions will be automatically converted into underlying tokens and included in the final balance.
Which accounts are not eligible for refunds?
Accounts with a total balance below $10 are not eligible for distribution to ensure process efficiency. All other accounts do not need to take any on-chain actions; their assets will be automatically distributed to their L1 wallet addresses, with all gas fees covered by Loopring.
What are the main reasons for the closure of Loopring DEX?
Loopring explained four main reasons in its announcement: it never achieved effective market adoption; the early zkRollup architecture lacked virtual machine support and composability; in 2026, LRC was widely delisted by major trading platforms; and modern zkEVM solutions are now fully compatible with Ethereum smart contracts, making Loopring’s architecture seem outdated.
