The origins of Jediswap go back to early 2020 when we started our journey not as a product but as a community known as the Mesh community. Our mission was clear: to bring Open Finance to billions of people. Recognising the strength of community-driven efforts, we understood that collective belief and collaboration, rather than individual or corporate endeavours, would be the most effective path forward. The Mesh community had a humble beginning with only a few contributors in the first month but has since flourished, now reaching a point of having 100s of contributors. Along the way, we experimented with various products across different blockchains, including Ethereum, Polygon, and Arbitrum. Ultimately, our community reached the consensus that validity rollups, also known as ZK Rollups, presented the most promising long-term solution for democratising web3 access.

In March 2021, our journey intersected with StarkWare, a pivotal moment catalysing our transition into the Starknet ecosystem. Since then, the Mesh community has exclusively been dedicated to building products in the Starknet ecosystem.

We have come a long way.

In December 2022, we proudly launched Jediswap as the first permissionless, open-source, decentralised exchange on Starknet. Since its inception, Jediswap has consistently held the top position as the #1 application on Starknet in terms of user count, excluding the official native bridge.

Our commitment towards Starknet was serious with very high conviction. As a result, we not only focused on Jediswap’s growth but also played an important role in Starknet’s growth as an ecosystem. While building on Starknet, we hosted some of the highest-quality Starknet events, such as Starknet India. We participated in almost all major Starknet events, including StarknetCC Paris, and hosted many online events, including workshops and Twitter spaces.

We have also brought light into Starknet by dominating Gitcoin Grants.

And now…

In line with our ongoing commitment towards our mission, we are excited to announce the official launch of Jediswap v2. Jediswap v2 is the first open-source concentrated liquidity AMM on Starknet. Here is an overview of the new additions accompanying the Jediswap v2 launch.

Concentrated liquidity

Concentrated liquidity involves strategically providing liquidity within a certain price range to maximise capital efficiency. Instead of distributing liquidity evenly across the entire price spectrum, users can specify a minimum and maximum price range when adding liquidity to a pool.  That means that the provided liquidity is concentrated within that price range, accounting for more liquidity per unit of price within that span. By optimising concentrated liquidity strategies, users can earn higher fees.

For example, liquidity providers allocate liquidity to a much narrower range when comparing stable pools like USDC-USDT or ETH-stETH to more volatile pools like ETH-USDC, making capital more efficient.

Custom fee tier pools

With Jediswap v2, users can add liquidity to different pools for the same pair with different swap fees. For example, for ETH-USDC, users can add liquidity to a pool with a 0.05% or 0.3% swap fee based on which fee tier results in a higher yield. Similarly, for non-volatile assets like USDC-USDT or ETH-stETH, users can add liquidity in a lower fee tier since there is a lesser risk of impermanent loss. It will make swapping attractive for those pairs, resulting in more volume and higher yield.

Price efficiency

In Jediswap v2, we developed an innovative router that optimises user swap rates by identifying the most efficient path. It automatically splits users’ orders into multiple paths, leveraging the liquidity across various pools on Jediswap v1 and v2.

Maximum design similarity with Uniswap v3

We intentionally kept the Jediswap v2 architecture design close to Uniswap v3 so teams building tools for concentrated liquidity positions in the EVM ecosystem can quickly utilise those tools for Starknet. We will heavily focus on these tools and support any teams working on them. These include ALMs(automated liquidity managers), backtesting for concentrated liquidity positions, etc.

Mint a Galxe NFT to celebrate the launch:

To commemorate this launch, we have published a fresh campaign on Galxe, which rewards users with an NFT on Starknet for being an early user of Jediswap v2. To earn the Galxe NFT, add at least $25 worth of liquidity to one of the listed Jediswap pools

• STRK - USDC - 0.3% or 1%

• STRK - ETH - 0.3% or 1%

• USDT - USDC - 0.01%

• ETH - USDC - 0.05%

What’s next

With the launch of Jediswap V2, we have planned many exciting things for the next few days and weeks.

Leaderboard

We have prepared a points system and a leaderboard designed for the liquidity providers and traders, allowing us to rank them based on the value they have added to Jediswap as users. These leaderboards will play a pivotal role in incentivising users in the future. This leaderboard will retroactively assign points to all Jediswap users. First, we will only consider the activity from Jediswap v2, but we are actively working to integrate past users of Jediswap in the same leaderboard. To maximise your benefits, begin by adding liquidity now. The more active your liquidity provision is, and the more consistently you keep the liquidity, the more points you accrue.

Incentives

Numerous teams reached out to us inquiring about ways to reward Liquidity Providers (LPs) of their pools. To help all of them, we will soon launch a generic incentive distribution infrastructure that anyone could use to incentivise liquidity on any of the pools they like. For example, a protocol might want to incentivise LPs based on their loyalty, price range, fee earned, etc. They might even use Jediswap leaderboard points as a proxy. If you are waiting for the juicy Starknet summer, start using Jediswap now!

Jediswap’s Incentive mechanism

After this launch, we aim to figure out an effective incentive model for Jediswap. We aim to work out an optimal incentive design that will help Jediswap to sustainable growth over the long term. Our principles prioritise genuine user engagement, loyalty, and fairness, which will be reflected in our incentive structure. The best way to help  Jediswap is by swapping, adding liquidity or becoming a Jediswap contributor :)

JediSwap is a 100% community-driven, fully permissionless, and composable AMM on Starknet. JediSwap enables the lightning-fast, near-gasless exchange of assets in a trustless manner.

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