Trader Joe’s says its liquidity book reduces the ongoing losses “suffered by so many liquidity providers on other DEXs” during times of market volatility.
Trader Joe’s, in the decentralized financial protocol based on Avalanche (DeFi), says it may have found a way to mitigate one of DeFi’s biggest weaknesses — impermanent loss.
Recently published a white paper on Tuesday called the JOE v2 Liquidity Book, authored by Quant developers and researchers Adam Sturges, TraderWaWa, Hanzo, and software engineer Louis MeMyself, the developers outlined the use of Liquidity Book (LB) with an additional variable fee swap feature to “provide traders with zero or low slippage trades.”
Thorchain is another DeFi protocol providing impermanent loss protection for LP deposits after the first 100 days (with partial protection before that point).
Trader Joe’s Protocol bills itself as a “one-stop decentralized trading platform” built on the Avalanche smart contract platform.
The protocol is currently the largest decentralized exchange (DEX) on Avalanche, with $191 million in total value locked (TVL) on the protocol.
The DeFi protocol allows users to trade, farm, lend and stake among other things.
Trader Joe’s token, JOE, saw its price briefly spike following the white paper release and is trading at $0.28 at the time of writing, though it’s still down 94.5% from its all-time-high, according to CoinMarketCap.
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