The new features are rolling out today and will be ramped up gradually over the next few weeks.
Autopools, sJOE fee sharing and other new features of Liquidity Book V2.1.
Autopools provides a platform for automated execution of liquidity strategies for liquidity book pools. Customers who do not want to actively manage their liquidity holdings can use an autopool instead. Autopools will expand over time to incorporate more unusual techniques such as off-chain signals, alternative asset mixes, etc.
Users can deposit tokens into an autopool and receive a token receipt that can be used for other DeFi operations such as yield farm, collateral, and leverage.
Fees accumulated in Liquidity Book pools are distributed as a percentage to sJOE Stakers. Fee sharing is limited to each chain, therefore sJOE on Arbitrum only shares fees on Arbitrum and sJOE on Avalanche only shares fees on Avalanche.
Fee sharing allows sJOE investors to share a percentage of fees collected in liquidity book pools. In addition, Liquidity Book V2.1 reduces typical gas costs by 30-40%. sJOE fee sharing is now available for all V2.1 liquidity pools created on Avalanche. Expect sJOE to grow as more V2.1 pools are migrated and deployed.
Liquidity Book V2.1 includes a thorough code update as well as all new contracts. Therefore, the liquidity book pools need to be updated from V2 to V2.1.
The move will take place in stages over many weeks. The pools that can now be migrated are marked with the word “Migration”. Trader Joe recommends that liquidity providers move their holdings to V2.1 as soon as possible.
Users can also set up swap instructions that will execute the buy or sell of a token at selected price points in the near future across all Liquidity Book markets.
This feature will be a native build that acts as a ‘Maker’ type liquidity order where the user places tokens in a liquidity book pool with instructions to withdraw the liquidity when the desired price is met.
With the launch of his v2 platform on Arbitrum on February 1st, Trader Joe has seen incredible success lately, climbing into the top 5 DEXs by trading volume. Although monetary incentives contributed to ARB’s increased liquidity, the team’s creativity in expanding DEX’s capital efficiency is the fundamental driver behind its development.
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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