Fee types

You need to pay gas fees on Ethereum Layer 1(L1):

  1. Wallet creation:

    • Each Loopring wallet is a smart contract deployed on Ethereum. Smart contract deployment costs a gas fee. This is the initial payment to create a wallet, which only occurs one time per wallet.

  2. Wallet recovery:

    • The social recovery action replaces the owner of your smart contract on Ethereum, which involves data written on Layer 1 (L1) of the Ethereum blockchain, and therefore costs a gas fee.

  3. Token Approval:

    • Before initiating an interaction between a token and a smart contract on L1 for the first time, such as depositing a specific token from L1 to L2, a Token Approval transaction must be submitted. You must first approve each token that you plan to use to interact with a particular smart contract. This is a security measure in which a user authorises the smart contract to access and use that particular token. This is an on-chain transaction which costs a gas fee.

  4. Adding and removing a guardian:

    • A guardian helps you perform social recovery of your smart wallet. This action involves modifying your smart contract’s data on L1 of the Ethereum blockchain, which costs a gas fee.

  5. Changing your daily limit:

    • You can set up your wallet to limit the maximum amount of tokens that can be transferred out per day, but by default it’s not set up. This action involves modifying your smart contract’s data on L1 of the Ethereum blockchain, which costs a gas fee.

  6. Adding a trusted address:

    • A trusted address is an address you can send to that doesn’t need approval from your guardians. This action involves modifying your smart contract’s data on L1 of the Ethereum blockchain, which costs a gas fee. Trusted addresses do not have a daily quota.

  7. Move tokens in/out Loopring Layer 2 (L2):

    • This action will call functions of Loopring's DEX smart contract, which requires a gas fee. There is a gas cost any time you move from L1 to L2, or vice versa.

  8. Transfers of ETH, ERC20 tokens on Layer 1 (L1)

  9. Decentralised apps, e.g. Uniswap, Aave

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