Liquidity Book: Chapter 2
TLDR:
Liquidity Book Rewards Program
Auto-Pools
Native Limit Orders
Permissionless Pools
Wrapping up Q4: 2022
Following the successful launch of the Liquidity Book AMM in November, the Decentralized Exchange was swiftly deployed to Arbitrum, marking the very first multi-chain move for Trader Joe to wrap up the 2022 year. Since that deployment, a further announcement has been shared about the continued multi-chain expansion plans, with the next move to deploy onto BNB Chain, by end of Q1 of 2023.
Liquidity Book has proven itself as a top-tier DeFi protocol, with the ability to offer efficient liquidity provisioning, an improved trading experience and also the ability to facilitate a self-sustaining emissions-free ecosystem. The Trader Joe Core Team now plans to double down and push forward with continued development of Liquidity Book. The focus over the coming months will be to further enhance the user experience, through new feature development, expanded usability and also continued multi-chain expansion of the Decentralised Exchange.
Feature Development
The below shares plans for new feature development on Liquidity Book. All features will be rolled out as a ‘V2.1’ upgrade and all features will be accessible across each chain the Trader Joe DEX is present on.
Introducing: The Liquidity Book Rewards Program
The LB Rewards program aims to improve market efficiency and contribute to significant trading volume. Users that provide liquidity into specific Liquidity Book pools, are automatically measured for their ‘maker score’ over pre-defined epochs based on factors that stimulate efficient markets. At the end of each epoch, users are distributed token rewards, if they score high enough. Rewards can be JOE or partner supplied rewards (or both) and are vested over a period of time that matches the epoch duration; the higher the score, the more rewards the user will receive.
The program has been designed to work in a sustainable manner that benefits the entire JOE ecosystem. Rewarding efficient liquidity provisioning will help to improve market up-time and bin liquidity depth, which in turn will support greater trading volume, helping to generate higher fees for Liquidity Providers. This program also unlocks the ability for partners to reward efficient liquidity provisioning for their own LB markets. The LB Rewards program is an innovative approach to the incentivization of liquidity built specifically for the most innovative AMM in DeFi, Liquidity Book.
Detailed plans on this program to be shared soon.
New Feature: Auto-Pools
Liquidity Providers using Liquidity Book have full control over the pricing of their assets and are expected to manage positions, essentially acting as an independent market maker. This is complex, risky and requires careful oversight and management to execute. Trader Joe will soon introduce Auto-Pools that automate liquidity provisioning. Using Auto-Pools, users will now be able to access Liquidity Books efficient and high yield Liquidity Pools, without the direct requirement to monitor and manage an active position. Set and forget your liquidity, with Auto-Pools.
New Feature: Limit Orders
Users will be able to set up swap instructions that execute buying or selling of a Token at desired price points for Liquidity Book Markets. This feature will be native, fully on-chain and custom built for the Liquidity Book DEX. Limit Orders will enhance the tools that Traders (and Liquidity Providers) have available to them to execute desired strategies.
New Feature: Permissionless LB Pools
Projects that wish to open an LB Market can soon use the Permissionless Pools feature. Permissionless Pools will have a predefined set of market parameters, there may also be a range of different configurations that allow for some level of customisation when deploying a Permissionless Pool. All Permissionless Pools will be paired with one of four Quote Asset Tokens (AVAX, USDC, BTC.b and WETH.e). Governance will remain in place for launching Liquidity Book Markets on Avalanche, this remains the ideal route to take for projects that would like to launch a fine-tuned and bespoke LB Market that is based on modeling from the Trader Joe Quant Team.
UI Tweaks and new Liquidity Shapes
The Trader Joe Team continue to take on user feedback, and will be making adjustments to the array of Liquidity Shapes and Strategies currently on offer. If you would like to contribute your ideas, suggestions or share your requests, please join the Trader Joe Discord Server.
Summarizing
Through the continuous development and roll out of new features, functionality and tools, Trader Joe remains focused on building and delivering the best decentralised trading experience in Avalanche, Arbitrum, BNB and beyond. Trader Joe is ready to continue it’s pursuit of DeFi accessibility and innovation on all fronts, as the ultimate one-stop-shop DeFi experience.
About Trader Joe
Trader Joe is a one-stop-shop decentralized trading platform and the creator of Liquidity Book, the most efficient AMM in DeFi. Trader Joe offers a comprehensive DeFi platform where you can Swap Tokens, Yield Farm, Supply and Borrow and shop for NFTs. Visit Trader Joe and discover DeFi today.