The Trader Joe team has stated on Twitter that the whitepaper of their brand new AMM called “Liquidity Book,” will be released on 22 August.
As the project team mentioned in a recent article, Liquidity Book aims to solve the biggest problems encountered by other popular DEXes including Curve Finance and Uniswap.
Trader Joe is a one-stop-shop decentralized trading platform on Avalanche. It is currently the third biggest protocol on Avalanche by TVL and the second biggest Avalanche’s native protocol.
Users can trade, provide liquidity, lend, participate in launch events for newly launched tokens, and buy NFTs directly on the Trader Joe platform.
Liquidity Book
After successfully launching Joepegs NFT marketplace earlier this summer, the project team revealed their intentions to develop a new AMM, which would be able to attract liquidity without requiring token emissions.
Impermanent loss, which is often encountered when providing liquidity on DEXes, makes a lot of people afraid of providing liquidity to the pairs that don’t offer substantial farming rewards.
While the farming rewards are great to attract liquidity in the short term, they are also diluting the value of the DEX token, and acting against the interests of the token holders.
There aren’t many details yet about how Trader Joe plans to solve this issue. However, the team stated that Liquidity Book AMM will implement concentrated liquidity, a concept that was introduced by the Uniswap V3, that significantly reduces slippage and improves capital efficiency.
Over the last year, Trader Joe has cemented itself as a core pillar of innovation on Avalanche. The project’s recent milestones include the launch of a new Launchpad called “Rocket Joe” and a revamp of $JOE tokenomics.
