- Trader Joe expands its services by launching its DEX on the Ethereum-based L2 scaling solution Arbitrum.
- Trader Joe version 2, based on a novel Automated Market Maker (AMM) architecture, has reached a TVL of over $7 million.
- The protocol also plans to launch its DEX on other chains this year.
Avalanche-native decentralized exchange Trader Joe is expanding its services by deploying an Ethereum-based scaling solution Arbitrum to capture new users. Per an article published by the Trader Joe team, the priority for innovation and growth will still be the Avalanche Network while the protocol seeks out its multi-chain vision by launching on more chains this year. As one of Trader Joe’s developers said in the announcement:
“Deployment to Arbitrum One is the next step in this global expansion effort.”
Trader Joe is one of the largest DEXs on Avalanche, and as of 2nd January, the protocol has a TVL of over $75M on the chain and is the most used application by volume. The protocol has been expanding its ecosystem by partnering with other companies, some of its most notable partnerships being with Trust Wallet and Crypto.com in the last year.
Trader Joe v2
Trader Joe also recently launched version 2 of its Automated Market Maker (AMM), called Liquidity Book. While in a traditional AMM the liquidity provided by users is distributed evenly across price ranges from 0 to infinity, the Liquidity Book by Trader Joe enhances the efficiency of liquidity providers by allowing them to collect trading fees within a specific price range.
Liquidity Book 🌊📘— Trader Joe🔺💙 | Live on Arbitrum 🌊📘 (@traderjoe_xyz) December 31, 2022
The most efficient AMM in DeFi, Liquidity Book offers true flexibility for Liquidity Providers and ZERO slippage swaps for Traders
Liquidity Book enables true sustainability with $JOE tokenomics. And you can bet Trader Joe is doubling down on LB in 2023. pic.twitter.com/EMm1euwG42
With the introduction of Liquidity Book, Trader Joe looks to compete with the likes of Uniswap V3, which has a similar architecture. Trader Joe v2 has reached a TVL of over $7 million, with more than 80% of that on Avalanche and the rest on Arbitrum. By launching its v2, the Trader Joe community expects its platform to become the home for all DeFi activity on Avalanche and Arbitrum.
On the Flipside
- The AMM market has become saturated, with every chain having its own native decentralized exchange. This might make it harder for Trader Joe to capture any significant market share.
Why You Should Care
Trader Joe’s expansion to other chains shows that the multi-chain vision might still be alive despite many alternate L1s seeing a significant fall in prices and TVL over the last year. The launch of DEX’s V2 could potentially have some impact on Uniswap’s TVL as well.