Trader Joe Expands To Layer-2 Arbitrum

Trader Joe, a decentralized finance (DeFi) platform, has announced its first extension from Avalanche to the Ethereum environment.

On December 1, the decentralized trading platform announced its “multi-chain” expansion into Ethereum Layer-2 scaling solution Arbitrum One, almost a month after announcing its aim to expand to other markets and develop new partnerships.

It is part of their strategy to expand into new areas and increase user activity.

Trader Joe will be available on Arbitrum’s testnet in the coming days, with a mainnet launch scheduled for early next year.

The extent of Trader Joe’s Arbitrum launch will be restricted. Avalanche will be the sole platform with features such as its native token JOE, loan platform Banker Joe, and NFT marketplace Joepegs.

It introduced a new technology dubbed the Liquidity Book Automated Market Maker (AMM) last week, claiming that it is more efficient than previous decentralized exchange methods. Apart from trading, the only other feature offered on Arbitrum is the Liquidity Book.

The team announced that they are collaborating closely with Offchain Labs, the creators of Arbitrum One:

“Deployment to Arbitrum One is the next step in this global expansion effort and we look forward to introducing the innovative AMM built on Avalanche, and also working with new partners to benefit the collective DeFi ecosystems of Arbitrum and Avalanche.”

According to L2beat, Arbitrum is the largest Layer-2 chain in terms of market capitalization.

Trader Joe is a popular AMM-based decentralized exchange built on the Avalanche blockchain. AMMs or automated market maker projects on Avalanche are almost new since the network itself is just a little over a year old, having been launched in September 2020 itself.

Most of the projects on the Avalanche blockchain currently are modeled after many other famous projects that exist on Ethereum and the Binance Smart Chain, including Pangolin and Zero Exchange (modeled after Uniswap), or Olive and Lydia Finance (modeled after Pancakeswap).

The decentralized exchange was launched on June 29, 2021, and has plans to offer DeFi lending and leveraged trading in the future. The product is community-driven and is powered by its own governance token, JOE. The platform allocates fees collected from liquidation and gives it back to the users by staking JOE tokens to get xJOE rewards.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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