Trader Joe Launches Centralized AMM Liquidity Book V2.1

On April 7th, it was announced that Trader Joe, a decentralized trading protocol, has launched centralized AMM Liquidity Book V2.1, which includes Autopools, Autopool Receipts, sJOE, Permissionless Pools, Fees now compound, migration to the new V2.1 liquidity pool, and Maker style limit orders.

Trader Joe has now launched centralized AMM Liquidity Book V2.1

On April 7th, the decentralized trading protocol, Trader Joe, made an exciting announcement. They have launched their centralized automated market maker (AMM) liquidity book V2.1, which includes several new features and improvements. In this article, we will explore each of these new features in detail and explain why they are significant.

Autopools

The first new feature introduced in the V2.1 liquidity book is Autopools. Autopools are pools that are automatically created when users add liquidity to a new token pair that is not yet listed on Trader Joe. This means that users no longer have to wait for a new token to be added by a market maker, as they can now create their own pools and start trading immediately.

Autopool Receipts

Another new feature of the V2.1 liquidity book is Autopool receipts. These receipts provide users with proof that they have added liquidity to a specific pool. They are generated automatically when users add liquidity to Autopools and can later be redeemed for liquidity provider (LP) tokens.

sJOE

The next new feature of the V2.1 liquidity book is sJOE. sJOE is a synthetic asset that is pegged to the price of JOE, Trader Joe’s native token. This means that sJOE can be used to trade JOE on Trader Joe’s platform, even if there are no direct JOE trading pairs available.

Permissionless Pools

With the launch of the V2.1 liquidity book, Trader Joe has also introduced Permissionless pools. These pools allow anyone to create a new trading pair, without requiring approval from a market maker. This means that users can trade any token pair they desire, as long as there is someone willing to provide liquidity.

Fees now compound

Previously, fees collected from trades on Trader Joe were distributed among LPs in the form of additional tokens. However, with the introduction of V2.1, fees are now compounded. This means that fees are added to the pool’s reserve, increasing the price of the token and benefiting all LPs.

Migration to the new V2.1 liquidity pool

Trader Joe has designed the migration process to V2.1 to be as smooth as possible for users. There is no need to remove liquidity from the existing pool, as existing liquidity will automatically be migrated to the new V2.1 liquidity pool.

Maker-style limit orders

The V2.1 liquidity book also introduces Maker-style limit orders, which allow users to create orders that are executed only when a specific price is met. This enhances the trading experience by allowing users to set their preferred price and have it automatically executed when the market moves in their favor.

Conclusion

Trader Joe’s launch of the V2.1 liquidity book is an exciting development for the decentralized trading protocol. The new features and improvements introduced in this release provide users with greater flexibility and control over their trades, while also enhancing their earning potential as LPs. The migration process to V2.1 has been designed to be seamless, and we look forward to seeing how these new features impact the user experience in the future.

FAQs

Q1. What is Autopool Receipts?

Autopool receipts provide users with proof that they have added liquidity to a specific pool. They are generated automatically when users add liquidity to Autopools and can later be redeemed for liquidity provider (LP) tokens.

Q2. Why are Maker-style limit orders significant?

Maker-style limit orders allow users to set their preferred price and have it automatically executed when the market moves in their favor. This enhances the trading experience by allowing users to take greater control over their trades.

Q3. How does sJOE work?

sJOE is a synthetic asset that is pegged to the price of JOE, Trader Joe’s native token. This means that sJOE can be used to trade JOE on Trader Joe’s platform, even if there are no direct JOE trading pairs available.