In a significant update, Trader Joe has rolled out Liquidity Book V2.2, bringing a fresh feature dubbed 'Concentrated Incentives' that is expected to launch today, with ARB rewards being initiated the next day.
In Brief
Today marks the launch of Trader Joe's Liquidity Book V2.2, featuring 'Concentrated Incentives,' with active ARB rewards starting tomorrow.
Decentralized exchange (DEX) Trader Joe Announcing the arrival of Liquidity Book V2.2, this updated version incorporates a new hook function tailored for the Liquidity Book alongside the 'Concentrated Incentives,' which are set to go live today—ARB rewards will follow suit tomorrow.
Using a discretized architecture, Liquidity Providers (LPs) are given complete control and flexibility over their liquidity deployments, enabling them to manage their liquidity range and structure more efficiently.
Every LB Pool presents a unique, real-time, fully on-chain mechanism to reward LPs. Additionally, these pools feature a specific 'reward range' that allocates reward tokens to LPs corresponding to their share of liquidity. This reward range dynamically aligns with a set of bins, typical ranging from 1 to 11. The primary goal for an LP is to align their liquidity within this reward range to optimize their share of incentives.
It's worth noting that the previous off-chain incentive program along with retroactive reward distributions from the Liquidity Book Rewards Program will gradually phase out. In its place, the 'Concentrated Incentives' will offer a direct incentivization experience easily accessible on-chain.
As part of the Galactica Campaign, Trader Joe plans to launch Arbitrum incentives tomorrow, distributing 755,000 ARB tokens across roughly 30 Liquidity Book Pools. Additionally, an incentive campaign on Avalanche slated for the end of the month will be uniquely based on 'Concentrated Incentives.' More details regarding this campaign will be revealed later this month.
What Is Trader Joe?
Trader Joe is built on the Avalanche This network harmonizes decentralized exchange (DEX) services with decentralized finance (DeFi) lending, allowing for leveraged trading opportunities. Users can trade through an automated market maker (AMM), gain rewards via yield farming, and engage in token lending and borrowing, while also having access to digital collectibles, including NFTs.
In a strategic move, Trader Joe has partnered with Stable Jack, an Avalanche-based LSTfi yield-bearing stablecoin. This partnership enables Stable Jack to utilize Trader Joe's Liquidity Book as its main DEX, ensuring cost-effective swap fees and optimal liquidity provisioning. The inaugural Liquidity Book Pool featuring aUSD to USDC is set to launch this week, offering liquidity providers a chance to earn points for future incentives.
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