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Oct 25 β€’ 4 tweets β€’ 2 min read
Liquidity Book: Feature Overview #1 πŸŒŠπŸ“˜

Liquidity Book significantly enhances capital efficiency over conventional DEXs using the x*y=k AMM. Better capital efficiency, results in larger profits for Liquidity Providers.

Lets explore an example below πŸ‘‡ Image
Depositing $100 of liquidity into a tight range, can behave and earn the same as $1000 in a conventional x*y=k AMM.

LBs innovative design even allows for up to 4000x capital efficiency, turning $100 into $400k...#BecauseBins Image
Concentrating your Liquidity into a tight formation does come with a risk of the IL but can result in big gains, for example, on stablecoin pairs.

Capital efficiency also enhances the experience for Traders, reducing slippage and swap rates...We'll explore that more tomorrow 🫑
Liquidity Book is a new approach to AMMs that aims to fix the inefficiencies of x*y=k, while still retaining the accessibility that has been the cornerstone of success seen in prior AMM models.

Deploying on #Avalanche the chain that is turbo charging #DeFi innovation.

β™»οΈπŸ”ΊπŸ‘¨β€πŸŒΎ

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More from @traderjoe_xyz

Trader JoeπŸ”Ί | New AMM Soon πŸŒŠπŸ“˜ Profile picture
Oct 27
Liquidity Book: Feature Overview #3 πŸŒŠπŸ“˜

Surge Pricing is a feature that applies a dynamic fee to Trades, this mitigates the impact of IL, helping to protect Liquidity Providers. Dynamic fees are innovative for AMMs and Liquidity Book is pioneering a novel way to do it... Image
The Liquidity Book #AMM comes with a novel designed Volatility Accumulator. This mechanism measures instantaneous volatility during Swaps, without relying on outside oracles, or complex calculations that can often lag.
Having an accurate volatility measure allows Liquidity Book to change swap fees accordingly:

πŸ“‰ Decrease fee
If volatility is low and there is little risk of IL

πŸ“ˆ Increase fee
If volatility is high and LPs need protection again IL
Read 6 tweets
Trader JoeπŸ”Ί | New AMM Soon πŸŒŠπŸ“˜ Profile picture
Oct 26
Liquidity Book: Feature Overview #2 πŸŒŠπŸ“˜

πŸ—‘οΈLiquidity Book's innovative bin architecture will result in price impact reduction for all swaps

πŸ“Š This helps Traders get the best possible prices for their tokens

⬆️ Lower cost Trades also help to capture more Aggregator volume Image
Discretized bins use a constant sum formula, as opposed to a constant product (x*y=k) formula. Prices on LB are derived from an active bin, if there is enough liquidity in a bin the swap can execute with zero price impact, thanks to the constant sum that is active in the bin.
Bins are particularly beneficial for swaps between stable coins and other pegged assets, as their prices are expected to be equal to each other most of the time, so trades will likely execute in the same bin (providing there is enough Liquidity).
Read 4 tweets
Trader JoeπŸ”Ί | New AMM Soon πŸŒŠπŸ“˜ Profile picture
Oct 26
Joe Spaces | EP1 | 🎭 - Wrap Up 🧡

Check out the highlights below from the latest #JoeSpaces

Thank to our guests:
β€’ @asimfiles and @NickSanschagrin from @ChainstackHQ
β€’ @LODE_one
β€’ @jonjonclark from @float_shipping
β€’ @ZooEcosystem
β€’ @jeffthedunker from @VesperFi Image
πŸŽ™οΈ @ChainstackHQ

The Future of DeFi
Chainstack offers a leading suite of services, connecting devs to Web3 infrastructure. Their mission is to bring together Web3 for all. Chainstack are heavily focused on #Avalanche as they view #Subnets as a huge growth prospect for the eco.
πŸŽ™οΈ @NickSanschagrin

Why is Avalanche different?
β€’ @avalabsofficial support is fantastic
β€’ Subnet proposition is very promising and the recent updates eg Banff, make it even more compelling
β€’ @ChainstackHQ aims to power as many subnets as possible
Read 13 tweets
Trader JoeπŸ”Ί | New AMM Soon πŸŒŠπŸ“˜ Profile picture
Oct 23
ERC-20, ERC721, ERC1155...

...ERC-WTF are you talking about?🀷

If, like many others in this space, you have no idea what these token standards actually mean...Look no further, this thread will unravel this mysterious lingo.

So get your reading glasses on, it's time to learn πŸ‘‡
#Avalanche and other "smart" blockchains allow developers to code pretty much anything they would want. This allows for unprecedented levels of innovation and creativity.

But it also means that some guidelines are needed for things to be able to interact and work together.
Imagine if Alice and Bob wanted to create their own non-fungible tokens. Without a common pre-agreed standard, they could end up with two very different tokens.

In turn, this would mean that #NFT marketplaces would have to account for both Bob's and Alice's implementations.
Read 12 tweets
Trader JoeπŸ”Ί | New AMM Soon πŸŒŠπŸ“˜ Profile picture
Oct 23
πŸ‘ Welcome to Trader Joe

The leading #DeFi experience on #Avalanche that offers a full suite of products, helping you to discover what #DeFi can really offer. To date, Trader Joe has facilitated activity for ~2m users and over $88bn in Trading volume

So, why visit Trader Joe?πŸ‘‡
πŸ“Š Trade hundreds of Tokens

In just a couple of clicks, you can swifty Trade. The Token List will let you search and explore a fantastic range of projects that are on #Avalanche.

Thanks to the #Avalanche network, your transactions will execute at low cost and at high speed.

πŸ”Ί
πŸͺ™ Earn Trading Fees

Put your Tokens to work in a Liquidity Pool (LP) to earn Trading Fees! Every time a user Trades, they pay a small fee to LPs. This Fee is paid out as a reward for providing Liquidity.

LPs come with some risk, Learn more here: help.traderjoexyz.com/en/trader-joe/…
Read 10 tweets
Trader JoeπŸ”Ί | New AMM Soon πŸŒŠπŸ“˜ Profile picture
Oct 21
Part 2: Advanced Strategies

This is the 2nd of a 2 part series exploring the flexible strategies you can deploy on the Liquidity Book AMM.

Understanding the strategies that are accessible to you, will enable you enhance your yield farming efficiency.

Lets explore πŸ‘‡

πŸŒŠπŸ“˜ Image
Ranged Limit OrdersπŸŒŠπŸ“˜

Users can use single-sided one-bin spot liquidity to place "limit orders" outside of the current price.

Once the price reaches these bins, liquidity in them will be converted from one token to another. Image
Ranged Limit OrdersπŸŒŠπŸ“˜

Advantages:
βœ…Buy/sell tokens at prices you want
βœ… Withdraw/change your order at any time

Drawbacks:
❌Doesn't earn fees while inactive

Considerations:
❓ Require withdrawing to prevent converting back
Read 12 tweets

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