JOE (JOE) is the native token of Trader Joe, a decentralized exchange (DEX) on the Avalanche (AVAX) blockchain that offers DeFi services, including swapping, staking and yield farming. It aims to provide a one-stop-shop DeFi experience and to integrate new products without compromising on security. It plans to have improved staking, non-fungible-token (NFT) exchange listings, the collateralization of the JOE token, and leveraged trading.
What Makes JOE Unique?
Trader Joe provides all the functionality of a modern DEX. Users can provide liquidity by participating in one of its yield farms and earn JOE (JOE) as a reward token, which can later be staked and used to vote in governance proposals. Its lending protocol Banker Joe, based on the Compound (COMP) protocol, allows users to borrow and lend funds in a non-custodial manner. Moreover, users can also open leveraged positions on their provided or borrowed funds.
To increase the utility and adoption of the JOE token, Trader Joe is working on introducing several new options, which are aimed at transforming the project into the main DeFi platform within the Avalanche ecosystem. First of all, users will be able to use JOE as collateral to borrow against. Moreover, Trader Joe also plans to facilitate limit orders, options and futures trading on its platform.
Founded in June 2021 by 0xMurloc and Cryptofish.
The origins of Joe were born from a blended desire, to create a unique and truly innovative trading platform that would resonate with the emerging superiority of the Avalanche blockchain, whilst also serving a global and burgeoning audience at the frontier of the decentralized finance industry.
Since launching, the platform has attracted over $1.5bn in assets and has gained backing from some of the most widely recognized investors in the industry.
Joe V2 is a decentralized exchange based on Liquidity Book, a novel AMM protocol.
It has the following improvements from the Joe V1 Dex:
- Zero 0% slippage for swaps between ticks
- Dynamic fees to improve liquidity provider profitability
Both Liquidity Book and Uniswap V3 are concentrated liquidity AMMs with some subtle differences:
- Price ranges are discretized into bins instead of ticks
- Bin steps (or tick sizes) can be more than 1 basis point
- Bins use constant sum invariant instead of constant product
- Liquidity is aggregated vertically instead of horizontally
- Liquidity positions are fungible
- Liquidity positions are not restricted to uniform distribution across its price range; they can be distributed in any shape desired
- Swap fees have fixed + variable pricing, which allows the AMM to charge more fees when market experiences high volatility.