Decentralized Exchange Trader Joe to Launch on Ethereum
Liquidity Book is Trader Joe's new AMM launched last November. It introduces a new approach to liquidity provisioning. Liquidity providers (LPs) can deposit liquidity into discrete price bins, each bin is assigned a specific price and LPs may provide liquidity to multiple bins. All liquidity deposited into bins is given fungible token receipts.
In addition, Liquidity Book introduces a fee structure called Surge Pricing, which has two components, a base fee and a variable fee. The base fee represents the minimum fee rate for all trades, and the variable fee is adjusted to account for volatility. The more volatile the assets are in a Liquidity Pool, the higher the variable fee will be.
Currently, Trader Joe is live on Avalanche, Arbitrum and BNB Chain.