Verified by the Trader Joe Team
What Is It?
Trader Joe is a multi-chain one-stop-shop decentralized trading platform live on Avalanche, Arbitrum, and soon, BNB Chain. It allows users to swap tokens, provide liquidity, yield farm, and lend or borrow tokens. Users can also shop for digital collectibles at the Joepegs non-fungible tokens (NFT) Marketplace.
About Trader Joe
Trader Joe is a decentralized exchange (DEX) powered by an efficient automated market maker (AMM) called Liquidity Book. Trader Joe was built and launched in mid-2021 on the Avalanche blockchain. It aims to be a leading multi-functional DeFi trading platform across multiple chains. The mission of Trader Joe is to drive DeFi adoption and improve accessibility through continued innovation and product development.
Liquidity Book AMM (Trader Joe V2) was recently launched, bringing three major changes to the AMM space in DeFi:
- Discretized Liquidity via Bin Architecture
- Novel Volatility Accumulator
- Fungible Token Receipts
Liquidity is discretized into “bins”, with each bin having a dedicated liquidity reserve. Bins are aggregated together to form a Liquidity Pool. Distinct price bins can be seen in the image below, which depicts the liquidity distribution of all liquidity in a Liquidity Book pool. Because of the liquidity discretization, the bins use a constant sum formula (instead of the popular constant product formula). The constant sum formula facilitates zero slippage and zero price impact trades, provided that trades only use liquidity from one bin, improving the user trading experience.
The current market price of asset X to asset Y would be the price bin with both assets, as this system would only have one price bin with both assets.
With this idea of a liquidity book, liquidity providers (LPs) can adopt different strategies for allocating their liquidity. Below is the chart of a bid-ask strategy that would allow LPs to capture market volatility within the specified range, allowing them to dollar-cost average (DCA) in or out of positions during a sideways market.
- Measures how often the “current” price bin is changed
- When the market is volatile, the price bin will change more often
- The volatility accumulator counts the number of bin changes that occur, and this measurement indicates volatility within the market
- The volatility accumulator count decays over time, so if the number of bin changes starts to reduce, it is a sign of lowered volatility
Fungible Token Receipts
- Provides efficient liquidity management for users, where they can adjust any position quickly at low costs
- Users receive fungible token receipts when they deposit into Liquidity Book
- LPs can rebalance their positions in one transaction
- LPs can continue accruing trading fees when providing concentrated liquidity by keeping their assets within active trading ranges
Token and Tokenomics
All JOE tokens are emitted based on the distribution portion and schedule. There is no pre-sale of the JOE token.
Total supply: 500,000,000
Initial supply: 0
Current supply: 464,339,519 (as of 19 January 2023)
Token type: ERC-20
Total supply of 500M tokens distributed as such:
- Liquidity Providers – 50%
- Treasury – 20%
- Development Team (3 months cliff) – 20%
- Future Investors (3 months cliff) – 10%
Trader Joe on Harvest
Trader Joe is supported by Harvest. Track the following asset types on your portfolio: Wallet Asset, LP Farm, Single Asset Staking, Governance Staking, Lending, and Borrowing.
- Trader Joe Website
- Trader Joe V2 Docs
- Trader Joe Token Distribution
- JOE Contract Address: 0x6e84a6216eA6dACC71eE8E6b0a5B7322EEbC0fDd
Harvest, our Portfolio Management Tool, supports Trader Joe! Learn how to track your position here. Unsure which protocols are supported? Check out the complete list. If you enjoyed this, explore Learn DeFi, which covers DeFi fundamentals. Alternatively, read Insights for more in-depth research on the DeFi space. Subscribe for our updates below!