Trader Joe Launches Liquidity Book V2.2 And Introduces ‘Concentrated Incentives’ Feature
In Brief
Trader Joe launched Liquidity Book V2.2 with “Concentrated Incentives,” anticipated to go live today, with ARB rewards activated tomorrow.
Decentralized exchange (DEX) Trader Joe announced the launch of Liquidity Book V2.2. This new version introduces the hook function for Liquidity Book and has implemented “Concentrated incentives” that are expected to go live today, with ARB rewards being activated tomorrow.
By employing a discretized architecture, Liquidity Providers (LPs) are granted complete autonomy and flexibility regarding the deployment of their liquidity range, the structuring of that liquidity, and its ongoing management.
Each LB Pool features a native, real-time, fully on-chain mechanism to incentivize LPs. Additionally, each LB Pool includes a “reward range” that allocates reward tokens to LPs based on their proportional share of liquidity. This Reward Range is linked to the active bin and moves synchronously with a fixed range of 1 to 11 bins. The objective for an LP is to maintain its liquidity within the reward range to maximize the share of incentives.
Notably, the off-chain program and the retroactive distribution of incentives through the Liquidity Book Rewards Program will be gradually discontinued. Instead, “Concentrated Incentives” are introduced, providing an on-chain accessible incentivization experience.
Trader Joe will initiate Arbitrum incentives tomorrow as part of the Galactica Campaign. This will involve distributing 755,000 ARB tokens as incentives across approximately 30 Liquidity Book Pools. Furthermore, towards the end of the month, Trader Joe will launch an incentive campaign on Avalanche that will exclusively utilize “Concentrated Incentives.” Further details about this campaign will be announced later this month.
What Is Trader Joe?
Trader Joe is built on the Avalanche network that integrates DEX services with decentralized finance (DeFi) lending to provide leveraged trading. The platform enables users to trade via an automated market maker (AMM) exchange, earn rewards through yield farming, lend and borrow tokens, and shop for the digital collectibles, including non-fungible tokens (NFTs).
Recently, Trader Joe has entered into a partnership with an Avalanche-based LSTfi yield-bearing stablecoin, Stable Jack. This collaboration allows Stable Jack to utilize Trader Joe’s Liquidity Book as its primary DEX, ensuring minimal swap fees and efficient liquidity provision. The first Liquidity Book Pool, featuring aUSD to USDC, is scheduled to launch this week. Liquidity Providers have the opportunity to accumulate points and qualify for future rewards.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
