Introducing the Trader Joe and Struct Finance Partnership with $1m in AVAX Rush Incentives
Trader Joe and Struct Finance have united products on the Avalanche blockchain, by combining the innovative yield tranching system from Struct Finance with the versatile and automated liquidity balancing solution developed by Trader Joe, called Auto-Pools.
Further, Struct Finance will launch an Avalanche Rush Incentive campaign. This campaign will see the allocation of $1 million in AVAX rewards, distributed by Struct Finance through their Auto-Pool Vaults. This initiative not only incentivizes participation into the vaults but also underscores the commitment of Ava Labs to support innovative DeFi offerings launching on the Avalanche ecosystem.
The best part about this announcement is that the incentives have started now, checkout the official Avalanche Announcement here
Auto-Pools
Built by Trader Joe, Auto-Pools have been designed to address challenges associated with active liquidity management by utilizing a ‘smart’ algorithm to rebalance liquidity within a Liquidity Book Pool, a method that has evolved from previous AMM protocol designs.
The initial 'V1' Constant Product AMM design offered a straightforward and user-friendly experience, maintaining a fixed 50/50 token ratio and allowing users to deposit and withdraw without the need for active management or monitoring of their position. While this approach greatly simplified the user experience, it was hindered by inefficiencies in liquidity provision, leading to suboptimal trading efficiency.
To address V1 inefficiencies, newer protocols such as Liquidity Book a 'V2 CLMM' (Concentrated Liquidity Market Maker) were developed. These protocols significantly enhance capital efficiency but at the cost of user experience, as liquidity providers are required to actively manage their liquidity to keep it within the specified range to earn yield. This is risky, complex, and demands constant attention.
Auto-Pools were built to bridge the gap between these two approaches. They combine the user-friendly experience of the V1 AMM with the capital efficiency of the V2 CLMM. By offering a simple, one-click liquidity provisioning experience, Auto-Pools eliminate the need for manual deployment and balancing of liquidity.
To date Auto-Pools have amassed ~$10m in total value locked on Avalanche helping to serve a significant user base with automated ease.
⚡ Access Auto-Pools on Avalanche
Struct Finance
Struct Finance is an innovative protocol that introduces structured products to the world of DeFi. It offers users yield options via tranching, which is a mechanism that changes the risk profile of deposits by prioritizing the way in which the yield flows from the assets collated in the underlying products, such as Auto-Pools.
There are two key types of tranched vaults
The Fixed (senior) tranche provides predictable returns for users who are looking for fixed yields. Want to lock in a guaranteed yield? The Fixed (Senior) Tranche is the choice for you.
The Variable (junior) tranche offers a potentially higher yield but comes with the additional risk that can see returns lower than the fixed yield offering. If you want to take on risk, this tranche is for you.
To sum it up, Struct Finance Auto-pool Integration offers:
Yield Tranching: Dividing Trader Joe Auto-Pool yields into fixed and variable tranches and aligning with individuals personal risk preferences.
Single-Asset Liquidity Provision: Simplifying the process for users who wish to deposit a single token into a one click vault.
Fixed Yield Option: Offering a stable and predictable return, ideal for those seeking safer yield in DeFi.
Variable Yield Option: Users willing to embrace higher risks for potentially higher returns, with a leveraged variable APR option.
Welcome to the Struct-Pools
Users will now be able to deposit a single asset, such as AVAX or BTC.b depending on the chosen structure of the Auto-Pool in the Struct Finance vaults.
The Vaults Now Live (Please be aware they are CAPPED and may fill fast)
BTC.b-AVAX
Fixed 20% APR AVAX
Variable APR BTC.b
AVAX-BTC.b
Fixed 10% APR BTC.b
Variable APR AVAX
The variable side in both vaults with be incentivized with $AVAX Rewards 🔺
Vaults can be accessed directly from the Struct Finance Platform
Struct Leaderboard: Points Program
Struct has recently launched their leaderboard feature, an intricately designed framework that ranks users based on their active participation in the vaults. By participating in the Auto-Pool vaults on Struct Finance, users will accrue points towards a future airdrop allocation of $STRUCT tokens on TGE.
📊 Learn more about the Points Program here
Auto-Pool Risks
Auto-Pools offer an automated way to access a Liquidity Book Pool. However, like all forms of providing liquidity, it's not without risks and should only be undertaken with a thorough understanding of the underlying Auto-Pool and market conditions. Using Struct Finance Vaults provides the same level of risk as directly accessing an Auto-Pool. Your capital is at risk. Your assets may be worth less when you withdraw them compared to when you deposited them.
Summary & Useful Links
This collaboration between Trader Joe and Struct Finance marks a new milestone of DeFi composability, blending automated liquidity management with an innovative structured yield product, helping to cater to a wide range of user needs and preferences in the Avalanche ecosystem.
Please visit the Trader Joe Discord linked below for any further questions
About Trader Joe
Trader Joe is a leading multi-chain decentralized exchange and the inventor of Liquidity Book, the most capital efficient AMM in DeFi. Trade your favorite tokens, access one-click yield farming and shop for the latest digital collectibles at the Joepegs NFT Marketplace. DeFi has never been easier thanks to Trader Joe.