ℹ️ OVERVIEW

Trader Joe is mainly a Dex native to the Avalanche Chain that has expanded to include the Arbitrum, BNB, and Ethereum Chains.

As of now, it's ranked 3rd in the Avalanche chain for TVL, with a 120M+ TVL.

TraderJoe has evolved significantly, offering a suite of services that extend far beyond standard token swaps.

Users can access liquidity pools for cryptocurrency farming, engage in staking opportunities with JOE tokens, explore a vibrant NFT marketplace called 'Joepegs,' utilize a cross-chain bridge, and delve into comprehensive cryptocurrency lending services.

🏝️ MERCHANT MOE

Adding to this ecosystem of innovation is Merchant Moe, the liquidity hub for the Mantle Network, emerging as a key player alongside Trader Joe.

Merchant Moe, a Trader Joe franchise, is backed by the Mantle EcoFund and is set to become a central DEX within the Mantle Ecosystem, focusing on nurturing new and exciting DeFi technology.

📍 Core Services and Features

1. Decentralized Exchange (DEX): At the heart of TraderJoe is its robust exchange, facilitating seamless and secure token swaps across multiple networks.

2. Yield Farming and Staking: TraderJoe introduces innovative staking mechanisms like sJOE and veJOE, providing users with a variety of incentives and governance powers.

3. Banker Joe: This lending protocol allows users to earn interest on their assets or borrow against collateral while implementing risk management features to mitigate inherent DeFi risks.

4. JoePegs: As TraderJoe's dedicated NFT platform, JoePegs is at the forefront of the NFT sector within DeFi, offering trading and auctions.

5. Launchpad for New Projects: TraderJoe serves as a springboard for emerging projects in the DeFi space.

🪙 Tokenomics

The tokenomics of TraderJoe, as of 2023, involve several key tokens, each with distinct functionalities and status:

1. JOE: This is the primary multi-utility governance token of Trader Joe. It has a fixed supply of 500 million, with 92.8% minted and 62% in circulation. JOE currently has emissions of 14.6k per day and is integral to the governance and operations of the DEX.

2. sJOE: sJOE token allows stakers to earn a share of the trading fees from the DEX. It is becoming a multi-chain staking option available on Avalanche, Arbitrum, and BNB. The V2 Fee share deployment is planned, with a 1% deposit fee.

3. veJOE: This token was designed for emissions sharing for the v1 Automated Market Maker (AMM), providing enhanced JOE yield. veJOE holders can receive boosted JOE rewards from the Liquidity Book Rewards Program. It continues to receive boosted emissions on v1 farms and is exclusive to Avalanche.

4. rJOE: rJOE, associated with the Rocket Joe protocol, is being deprecated in its current form. Stakers of rJOE will be awarded commemorative NFTs, and there are potential plans for the protocol.

The $MOE Token, central to Merchant Moe, will be initially available exclusively to $JOE holders. They can bridge and stake their tokens as mJOE on the platform, with the bridge and staking features going live soon.

Holders are eligible for a 2.5% $MOE supply airdrop at the token generation event, plus an additional 5% distributed over a year for continued staking.

TraderJOE Statistics from Token Terminal

• The thing that interests me the most is the Annualized Revenue, which is not that bad at a "$12M

📚 Liquidity Book V2.1 - An AMAZING UPGRADE

TraderJoe's Liquidity Book V2.1, released in late 2023, introduced several innovative features to improve its capabilities:

1. Autopools: These function offers automated liquidity strategy execution, allowing users to deposit tokens and receive token receipts usable in various DeFi operations like Yield Farms, collateralization, and leveraging. Autopools are expected to incorporate more advanced techniques over time, such as off-chain signals and alternative asset mixes​​​​.

2. sJOE Fee Sharing: The V2.1 upgrade enabled fee sharing for sJOE stakers, distributing a percentage of fees from Liquidity Book pools to them.

3. Permissionless Pools: V2.1 allows for permissionless pool deployment, enabling anyone to create pools with any asset pair.

4. Improved Fee Structure: Now fees are automatically claimed and compounded into the active bin where they were accrued​​.

5. Native Limit Orders: A new feature to execute swap instructions at desired price points is in the works. It will function as a 'Maker' type liquidity order, allowing users to deposit tokens into a Liquidity Book pool and withdraw liquidity if the desired price is reached​​.

6. Security Audits: Liquidity Book V2.1 and Autopools have been audited by Paladin Security, with an additional Audit Contest program planned with Immunefi to ensure security and reliability​​.

These upgrades, including the reduction of typical gas costs by 30-40%, are part of Trader Joe's efforts to create a more capital-efficient and user-friendly DEX​​.

In terms of design and functionality:

• Trader Joe’s Liquidity Book improved on Uniswap V3’s concentrated liquidity model by using “bins” instead of “ticks” for price separation, enabling zero price-impact trades as long as a single trade doesn’t exhaust all the liquidity in a bin​​.

• The price bin system enhances composability and flexibility, making Liquidity Book positions more fungible and allowing for a range of custom strategies and unique liquidity provision shapes​​.

• Variable fees on pools were introduced to mitigate the impact of impermanent loss, with fees adjusted based on pool volatility​​.

The V2.1 launch happened in three phases, focusing initially on V2.1 pools, Autopools, and Permissionless Pools, followed by the integration of sJOE on Arbitrum and BNB, and finally, the implementation of Autopool Farms and Limit Orders​​.

🏊🏻 Auto-Pools

Autopools are my favorite things about TraderJoe, they offer a 'set-and-forget' farming strategy, offering impressive APRs for various coins.

Their dynamic, off-chain management ensures scalability and efficiency, making them a popular choice among users.

🏝️ MERCHANT MOE

😶‍🌫️ FINAL THOUGHTS

TraderJoe's blend of innovative services, solid tokenomics, and user-friendly features positions it as a formidable force in DeFi.

It's more than just a DEX; it's a comprehensive ecosystem driving the future of decentralized finance.

You can find all the sources I used below. If you found this article helpful, please consider supporting my work by collecting this article.

Have a wonderful holiday, and see you next year with new and more amazing content.

🔗 SOURCES

1. Coincu about Trader Joe Liquidity Book V2.1: coincu.com

2. CoinMarketCap about Trader Joe Liquidity Book DEX: coinmarketcap.com

3. BSC News about Trader Joe Liquidity Book V2.1: bsc.news

4. Trader Joe Help Center on Autopools: support.traderjoexyz.com

5. Coincap - Crypto News about Trader Joe's Auto-Pools: coincap.news

6. TradingView News on Trader Joe Auto-Pools: tradingview.com

7. Crypto Daily on Trader Joe Auto-Pools: cryptodaily.co.uk

8. HackerNoon on Trader Joe’s Case Analysis

9. Cryptonews.net on Trader Joe's Security Breach

10. Joe Content on JOE Tokenomics

11. CoinCarp on Trader Joe Tokenomics

12. CoinMarketCap on JOE Token

13. Trader Joe: Q3 2022 Report

14. Trader Joe Launches Governance System - TokenInsight

15. Trader Joe Review 2024 - CoinBureau

16. TraderJoe: a Snapshot - GBV Capital

17. Avalanche DEX Trader Joe Plans to Make its Tokens More Valuable for Users - Coindesk

18. Trader Joe Deactivates Frontend Following Potential Exploit - Bull Tools

19. Why Multi-Auditing of DeFi Projects is Important - HackerNoon

20. Trader Joe - Detailed Report - DeFiSafety

21. Introduction to Auto-Pools - Trader Joe Help Center

22. Liquidity on Autopilot with Trader Joe Auto Pools - Fraxcesco Substack

23. Trader Joe Goes All-In On Auto-Pools: Game-Changer For DeFi Investors? - CryptoPools

24. How to use Auto-Pools - Trader Joe Help Center