Trader Joe's ranks as the fifth largest decentralized exchange (DEX) in the DeFi ecosystem by weekly trading volume.
Trader Joe, a DEX based on Avalanche's scalable blockchain, is growing rapidly. In the past week, this DEX recorded a 15% increase in cumulative trading volume over the last 7 days, processing over $670 million in transactions.
The reason behind its growth appears to be the launch of a new update to its liquidity book model.
On Twitter, Trader Joe's developers announced the arrival of Liquidity Book V2.1, a new version of their innovative Liquidity Book, the protocol's automated market maker.
Trader Joe's has switched to a liquidity ledger model similar to Uniswap, which currently ranks as the largest DEX and AMM (Automated Market Maker) in the DeFi ecosystem.
Trader Joe Liquidity Book V2.1
Liquidity Book V2.1, similar to the model implemented by Uniswap V3, is driving Trader Joe’s usage by allowing traders to add tokens to liquidity pools more efficiently.
The new version of this decentralized protocol also introduces a new feature, called “auto-pools,” which is focused on the automatic management of Liquidity Provider (LP) positions. The new feature seeks to mitigate the risk for LPs participating in high-yield pools.
The updates announced by Trader Joe's developers in the last week, coupled with the opportunities this DEX offers to LPs, have increased user interest, which is reflected in its weekly trading volume.
According to data from the DeFi platform Llama, Trader Joe has operated a total weekly volume of $679,17 million. The daily trading volume of this DEX, in the last 24 hours, exceeds $96 million USD while the total value deposited (TVL) in the DEX reaches $114 million USD.
Source: DeFi Llama
The Liquidity Book is Trader Joe’s innovative business approach to automated market making (AMM). Trader Joe’s focuses on offering fast, affordable trading with 0% slippage for swaps and dynamic fees to improve LP profitability.
JOE token price doubles
JOE, the native token of the Trader Joe protocol, has doubled in value over the past two weeks. Currently, this token is trading at around $0,62 per unit, showing a growth of 24% in the last week and 158% in the last month.
So far this year, JOE price has increased by 370%, as seen in the price chart on the CoinMarketCap platform.
Source: CoinMarketCap
The volume of transactions carried out with this token has also seen a significant increase. According to CoinMarketCap, almost $50 million dollars are being traded daily with JOE. Much of this trading volume is occurring within the decentralized finance ecosystem.
With all this, the decentralized exchange has managed to position itself in fifth place on a long list of DEX platforms with respect to weekly trading volume.
Trader Joe launched on the Avalanche blockchain and has deployments on the BNB Chain network and the Arbitrum sidechain, where much of its trading activity is taking place.
Continue reading: DEX Use Increases as Agencies Step Up Regulatory Scrutiny
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