Ring miners are network participants in the Loopring protocol who manage order rings and ensure trades are completed for all parties involved.
What Are Ring Miners?
Ring miners facilitate orders by filling them before they can be completed or canceled. Those who work as ring miners are paid a service fee in the form of LRC tokens which is Loopring protocol’s native token or a slip-margin from an order amount.
Ring-Miners are critical components of the Loopring network. Their activities revolve around executing orders with the help of order rings to gain a service fee. There are two types of rewards that ring-miner receive:
Ring miners are also awarded through split margins, which are deducted from the total amount of a specific order. While placing an order, the user can also specify the portion of the margin that can be claimed for a specific order.
The decision of choosing between fees and margins is up to the ring-miners.
The compensation system in Loopring is intended to help ring miners receive adequate financial reward for the services they deliver during the order ring. It is based on an incentive system so that miners seek out the best exchange rate deals to obtain better split margins or service fees for themselves. Finding the perfect trading deals also ensures that users receive the most value for their traded cryptos, making it a promising win-win situation for both parties involved.
The Loopring smart contract defines how to fill an ordered ring when a ring miner completes it.
Except for Mark’s, no one’s order is filled. Loopring’s order sharing would handle the leftovers, which would then be filtered into another order ring until each incomplete order is added up to the complete order.