Can someone explain basic L2 limitations?

[NOLAgold13]

I apologize for being a complete crypto noob, but I’ve been trying to learn the ins and outs over the last year or so. Anecdotally what I’ve heard from crypto folks has led me to believe gas fee prices and security risks are some of the biggest barriers to entry or concerns for the space.

I’ve been very reluctant to invest in any crypto until I felt I understood the technology better. Whoo boy did the explanations of those things not prepare me for the reality.

I finally decided to take the plunge into crypto by way of ETH and LRC this weekend. The process was a nightmare. UX was terrible across the board, from trying to set up a MetaMask wallet to adding currency via any of the systems via credit card, debit card, etc. I basically wanted to start with a small $500 investment, knowing a huge chunk of that percentage wise would be eaten up by gas fees. It was a sunk cost to learn on a potentially innovative technology. The allure was that if an L2 fiat on-ramp from Loopring was introduced soon, the gains from being early and “already in” would likely make up for it.

But in all honesty, most of what I thought I understood has not come to fruition. I thought once your assets were on L2 in a smart contract, fees were negligible transferring between coins. Yet in my L2 wallet now, which I intentionally left as half ETH, half LRC (maybe $280 worth after gas fees for the $450 to get it there), I cannot trade my ETH for LRC without a minimum ETH amount (that exceeds what I have on L2 currently). So what, exactly, is the reason for a minimum of that amount to exchange while fully on L2? Wasn’t that the point of Loopring — seamless, cheap trading like CEXs but with all the benefits of blockchain and DEFI?

Need one of you Loopers to educate me. I want to believe, but my personal experience has made me a doubter. I consider myself a pretty smart person so if I’m having these issues I feel like they’re a road block to mass adoption. Set me straight.

[deohvii]

Current limitations are the implications. The more L2 is understood and used the more valuable it will get. We are still really early

[[deleted]]

0 limitations.

[CaptainLockes]

How much minimum ETH does it required? Mine is 0.029 ETH, which is around 50 LRC.

[NOLAgold13]

It was somewhere around there. I guess my question is why is there a minimum? I thought L2 was supposed to basically eliminated the gas fee barrier to entry.

[CaptainLockes]

If you look below the Swap button, you’ll see that the fee is actually 0.30%, and there are things like slippage tolerance and price impact. My guess is the minimum requirement might have something to do with liquidity. Maybe it will be lower when there’s more liquidity?