TLDR:
- Autopools: level of automated strategy execution for the liquidity book
- Autopool Income: Deposit and collect rewards, yield farming we all love
- sJOE: Join sJOE and get your share of trading activity
- Permissionless Pools: Anyone can open a liquidity book pool
- Charges are now compounded: Gas consumption optimization by ~30-40%
- Migration to new liquidity pools of version 2.1
- Maker-style limit orders (deployed at a later stage)
The next chapter: Liquidity Book V2.1
Welcome to a new era of DeFi yield farming. Trader Joe builds, and everything that comes as part of V2.1 has been designed from the ground up and bespoke for Liquidity Book’s innovative discretized liquidity architecture. Liquidity Book offers a market-leading level of customization and flexibility, but V2.1 takes it a step further by democratizing the ability for everyone to access the power of Liquidity Book. Expect nothing less than a market-leading experience with V2.1. Trader Joe is pioneering the future of AMMs and the role they play within DeFi ecosystems, it starts today.
All of the features and enhancements featured in this article are rolling out starting today (April 6) and will be rolled out and scaled gradually over the coming weeks.
Introduction: car pools
Autopools add an automated tool for executing liquidity strategies to liquidity book pools. Users who do not want to actively manage liquidity positions themselves can use an autopool instead.
The first auto pools will follow a basic market making strategy:
- When volatility is low, liquidity is concentrated around the active bin
- The spread widens as volatility increases
- Inputs: twap and volatility
- Outputs: position and shape size
Over time, autopools will expand to include more exotic strategies that may include off-chain signals, different asset mixes, and more.
Why are car pools exciting?
Autopool strategies are executed using off-chain scripts controlled by a “black box”. The Black Box allows strategies to be updated in real-time, meaning autopool strategies can be updated dynamically, allowing for optimization for market conditions and a process of constant iteration to improve performance.
- Autopools are in the final stages of testing, expect more information on launch strategies and deployment details coming soon. Autopools will power the Trader Joe platform with a fully native Liquidity-as-a-Service experience built by our passionate team aiming to drive true innovation and sustainability in the AMM space.
One-Click Yield Farming: Autopool Farms
Deposit tokens in an autopool and receive a token receipt that can be used for further DeFi activities such as yield farm, collateralization and leverage. This is the “V1” style of DeFi yield farming that many users are familiar with and is only possible thanks to Liquidity Book’s fungible liquidity architecture.
Trader Joe is collaborating with a number of partners in Arbitrum, Avalanche and BNB to work on integrating autopool token receipts for more DeFi use cases.
Wow
Fees accrued in liquidity book pools are shared directly with sJOE Stakers. Fee sharing is exclusive to each chain, i.e. sJOE on Arbitrum shares fees on Arbitrum and sJOE on Avalanche shares fees on Avalanche. sJOE Fee Share is live for all V2.1 Liquidity Pools which are now open on avalanche. Expect sJOE to scale as more migration and deployment of V2.1 pools occurs.
Below is the fee share rate by market grouping:
- Stables 0-5%
- Alternative barns / staked 10-25%
- Majors/Network Tokens 10%
- Alternate 15-20%
- long tail 25%
Please note that the final fee percentage is subject to change and the core team reserves the right to adjust market-level fee percentages once live to ensure optimization for all users
Permissionless Pools
Liquidity book pools are currently permitted. However, the permissionless pools feature opens the liquidity book pools taps, which can be opened by anyone who has an out-of-the-box configuration set to 100 bps discretization (0.8% basic fee for trading). Permissionless pools can only be paired with whitelisted listed assets: Avalanche (AVAX, USDC, BTC.b and UTDT) and Arbitrum (ETH, USDC, USDT and BTC.b). New discretization configurations may be added in the future.
- Permissionless pool option will go live in the coming week(s).
Governance remains the best path for projects that want a bespoke market for their token. Governance suggestions may be posted on the Trader Joe Discord Forum.
The fees are now subject to interest and can no longer be claimed
Liquidity Book V2.1 comes with a complete code overhaul that implements a number of important optimizations. V2.1 will greatly improve the user experience for transactions or managing liquidity in the liquidity book Reduce average gas costs by 30-40%. help further drive adoption by users and partner protocols looking to build on top of the AMM.
A major change for this optimization is that users can no longer claim the applicable fees, but instead All fees are automatically collected and accrued interest into the active container from which charges were incurred. This kind of improvement is only possible thanks to the fungible discretized bin architecture on which Liquidity Book is built. All accrued user fees can be tracked hourly or by bin using analytics built into the liquidity book pool pages.
Migration to new pools
Due to the full code overhaul, all Liquidity Book V2.1 contracts are completely new and therefore Liquidity Book pools are being migrated from the current V2 version to V2.1. This will be done in tranches to minimize disruption across the platform. The process is as simple as withdrawing liquidity and then depositing it back into a new liquidity pool. The main focus on migrating to V2.1 pools will start with smaller liquidity pools on Avalanche and scale from there across chains. We assume that the migration will take a few weeks for all chains.
All liquidity pools with the “Migration” sign have an active V2.1 pool that can be migrated to. To understand this process step by step, please see the guide below
👉 Migration to V2.1 Liquidity Pools 👈
Maker Limit Orders
Users will soon be able to set up swap instructions that will buy or sell a token at desired price points for all liquidity book markets. This feature will be a native build and will act as a “maker” style liquidity order where the user deposits tokens into a liquidity book pool with instructions to withdraw the liquidity when the desired price is reached. As a liquidity provider, you get complete control over your delivery strategy. This allows you to execute swaps at your exact price target at no cost and also earn your share of fees incurred by the pool while executing the limit order.
- Limit orders will be introduced at a later date, not yet announced
Security
Liquidity Book V2.1 and Autopools have been audited by our trusted partner, Paladin security. In a continuing interest in securing logs and code with multiple audits, both V2.1 code and autopools are subject to an audit contest program immunofi, this will start shortly.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.