Curious about @traderjoe_xyz's Liquidity Book?
Many people have interested with LB recently, after it's deployment on @arbitrum. But what exactly is Liquidity Book?
Here's a deep dive article and a comparison with @Uniswap v3.
Thread🧵
#DeFi #AMM #LB
open.substack.com/pub/tervelix/p…
Many people have interested with LB recently, after it's deployment on @arbitrum. But what exactly is Liquidity Book?
Here's a deep dive article and a comparison with @Uniswap v3.
Thread🧵
#DeFi #AMM #LB
open.substack.com/pub/tervelix/p…
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In this article I've mentioned about;
🪙Token standards: ERC-721 for UniV3 vs ERC-1155 for Liquidity Book
🤝Interoperability
💸Gas efficiency
📈Price Impact
💹Volatility accumulator
🗳️Governance
and more..
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In this article I've mentioned about;
🪙Token standards: ERC-721 for UniV3 vs ERC-1155 for Liquidity Book
🤝Interoperability
💸Gas efficiency
📈Price Impact
💹Volatility accumulator
🗳️Governance
and more..
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One key feature of LB is its "modular liquidity" system, which allows liquidity providers to select any price range in which they want to provide liquidity and earn fees, while traders can trade without experiencing price impact within the same price range or "bin."
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One key feature of LB is its "modular liquidity" system, which allows liquidity providers to select any price range in which they want to provide liquidity and earn fees, while traders can trade without experiencing price impact within the same price range or "bin."
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A major difference between Liquidity Book and Uniswap v3 is the token standard used. While Uniswap v3 uses NFTs (ERC-721) as liquidity tokens, Liquidity Book uses a specially built token standard similar to ERC-1155 but without NFTs.
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A major difference between Liquidity Book and Uniswap v3 is the token standard used. While Uniswap v3 uses NFTs (ERC-721) as liquidity tokens, Liquidity Book uses a specially built token standard similar to ERC-1155 but without NFTs.
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This offers a number of advantages, including increased interoperability and the ability to easily build new features on top of the platform.
This offers a number of advantages, including increased interoperability and the ability to easily build new features on top of the platform.
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TJ has a variable fee model based on a volatility accumulator, which means that fees increase when the volatility of the bin increases, and decrease when the volatility decreases.
TJ has a variable fee model based on a volatility accumulator, which means that fees increase when the volatility of the bin increases, and decrease when the volatility decreases.
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This incentivizes liquidity providers to provide liquidity in less volatile bins, which in turn benefits traders by providing more stable prices.
This incentivizes liquidity providers to provide liquidity in less volatile bins, which in turn benefits traders by providing more stable prices.
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It has a governance model that allows $JOE token holders to vote on the addition of new pools to the Liquidity Book. This creates value for token holders and ensures that the pools added are in the best interest of the community.
It has a governance model that allows $JOE token holders to vote on the addition of new pools to the Liquidity Book. This creates value for token holders and ensures that the pools added are in the best interest of the community.
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Liquidity Book or Uni v3, they both have trade offs but they both are bold, interesting and innovative designs; specially for capital efficiency which DeFi needs.
There is no winner but a great competiton between AMMs which push innovation for futher.
Liquidity Book or Uni v3, they both have trade offs but they both are bold, interesting and innovative designs; specially for capital efficiency which DeFi needs.
There is no winner but a great competiton between AMMs which push innovation for futher.
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Want to learn more? Check out the full article for a deeper dive into the inner workings of Liquidity Book and how it compares to Uniswap v3
open.substack.com/pub/tervelix/p…
#DeFi #LiquidityBook #TraderJOE #Uniswap
Want to learn more? Check out the full article for a deeper dive into the inner workings of Liquidity Book and how it compares to Uniswap v3
open.substack.com/pub/tervelix/p…
#DeFi #LiquidityBook #TraderJOE #Uniswap
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If you want to support me u know what to do 🤝
Thanks for reading and pls share any comment for the article.
If you want to support me u know what to do 🤝
Thanks for reading and pls share any comment for the article.
https://twitter.com/tervelix/status/1610992781761339394?s=20&t=X48tkqQZZnsxwZy3Pc9Exw
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