FAQs

Have questions? You've come to the right place to learn more about Loop Crypto and crypto autopay. Check out answers to the most commonly asked questions.

TL;DR

Loop allows you to provide authorization to debit your wallet for a service or to make a transaction. You're always in control of this authorization.

In the old way, web2 companies required you to provide payment information that they stored, could bill any amount and you couldn’t revoke access.  Web3 + Loop changes this - we unlock the power of Web3, putting power back into the hands of users while enabling autopay.

Loop allows you to fully control interactions with your wallet. Using the allowance function, you can limit the most a company can bill and change or revoke this amount at any time. (If you’ve used dApps like Uniswap or Compound you’ve used this function). The allowance function is the only transaction you’ll sign. You can edit this amount in your wallet before the transaction is signed, and at anytime afterwards. Set the amount to whatever you want!  Only enough for the first transaction, the next quarter of transaction, or the whole year. You’re in control.

What is Loop?

Loop makes it simple to enable autopay in web3. We do this by providing a suite of APIs, tooling, and smart contracts that enable a superior product experience in web3. We believe in a decentralized, interoperable future and are focused on automating crypto transactions to accelerate that future.

How does Loop work

Loop works similarly to traditional web2 solutions but uses a smart contract layer to process transactions on chain. Loop ingests requests to bill or pay a wallet and then processes those requests after checking that all validation and security parameters are met. Loop allows users to authorize automatic transactions from an application of their choosing. This authorization can be for paying for a good or service whose details are agreed to and enforced by contracts living off-chain (e.g. terms of service), on-chain (e.g. smart contract), or somewhere in between. In all these cases, Loop preserves the trust assumption already present when agreeing to goods and services with the end application.

Is it safe to interact with the Loop Crypto contract?

Yes! We use the token allowance to protect the funds in users’ wallets. Unlike with traditional rails, web3 allows for users to always be in control of their assets. This is done by increasing / decreasing the token allowance. Users can reduce their wallet's allowance with the Loop smart contract to 0 - effectively making it impossible for Loop to process a transaction because we simply do not have authorization. Conversely, users can limit the maximum amount the Loop contract can ever touch - be it authorized or unauthorized through a malicious attack - by setting the allowance to a specific amount (e.g. 500 USDC). This cumulative amount is reduced as users interact with the contract. The allowance function sits on the token, not the Loop contract, and thus can never be tampered with or removed by Loop. It is inherent in the ERC-20 token standard. The user can manage their token allowance for Loop or any other dApp using revoke.cash.

What network is Loop available on?

Loop is currently live on Ethereum and Polygon. If you want to test with Loop, you can test with Loop on the Goerli Testnet.

Who pays for gas fees when I use Loop?

Users only pay for gas to manage their authorization - set, increase or decrease. Users never pay for gas for each auto-transaction.

WTF is wETH and how do I get it?

wETH is wrapped ETH. ETH itself is not an ERC-20 token but wETH is. Our smart contracts only work with ERC-20 tokens, thus, you have to “wrap” ETH to turn it into wETH if you desire to use ETH to make a transaction. Learn more here.

You can trade ETH for wrapped ETH (WETH) on any AMM such as Balancer or Uniswap. You will still need ETH in your wallet to pay for any gas fees. Loop makes it possible to unwrap ETH before it is sent to its final destination.

How can I get MATIC to pay for gas on Polygon?

There are three ways:
1) Bridge from Ethereum: You can move funds from Ethereum to Polygon using bridges like Hop Exchange or Polygon bridge. Please note that it can take up to 25 minutes for the funds to be available on Polygon after using a bridge.
2) If you already have tokens on Polygon, you can use gas swap to swap from another token into MATIC without paying gas (ie. you don't need MATIC).
3) Send directly from an exchange: some exchanges (like Coinbase) are beginning to allow you to send funds to a non-custodial wallet on the Polygon network. Not all exchanges support this yet, so confirm with the exchange before attempting this approach.

What if my wallet does not have enough funds and/or the ERC-20 allowance is too low when my transaction is due?

If a wallet doesn't have a sufficient balance and/or the allowance is too low to cover the cost of the automated transaction the transaction will not be processed. To help prevent missed transactions, Loop sends email reminders leading up to the transaction due date.

Can I cancel a transaction?

Yes! You can cancel at any time. Continued access to the end product will depend on each company's internal configurations.

Are there refunds?

There are currently no refunds within the system. All transactions are an agreement between you and the end company. Any disputes regarding a transaction should be directed to the company you are transacting with. The company is responsible for its own dispute process and refunds.

You as the user always have control over your wallet with the allowance function. You can always set your token allowance to 0 to prevent future transactions in the event of a dispute if needed.

Can I change the wallet I use to pay with after I subscribe?

Changing your wallet can be possible depending on the configuration of the end company whose service you are subscribing to. Please contact the company to update your wallet address.

Can I change what token I use to transact in?

Changing the token you transact in can be possible depending on the configuration of the end company whose service you are subscribing to. Please contact the company to update your preferred token for the transaction.

Why do you collect my email address?

Providing an email allows users to receive receipts, reminder emails when a transaction is due, and cancellation notifications; it ultimately leads to more successful transactions and a better experience. We store emails on our secure back-end servers. See our Terms of Service for more details.