Trader Joe and its Initial Foray into the Ethereum Ecosystem
Trader Joe’s first extension from Avalanche onto the Ethereum network was recently announced as part of the company’s ambition to expand into new markets and increase user participation.
In response to declining TVL and user activity in the third quarter, the decentralized trading platform announced on December 1 that it would expand into Ethereum layer-2 scaling solution Arbitrum One. This comes about a month after the company announced its intention to expand to additional markets and ink new partnerships.
We’re extremely happy to announce that we (@OffchainLabs) are acquiring @prylabs, the team behind Ethereum's leading consensus client!
Let’s dive into details!🧵👇https://t.co/qIp5JqvZRi
— Arbitrum (💙,🧡) (@arbitrum) October 12, 2022
The developers claim to be working closely with Offchain Labs, the company behind Arbitrum One, to launch a testnet in the following days, with a full launch of the Arbitrum One mainnet planned for January 2023.
The team hopes that the deployment of the novel AMM built on Avalanche, and the subsequent engagement with new partners will contribute to the expansion of both the Arbitrum and Avalanche DeFi ecosystems on a global scale, and they see the deployment to Arbitrum One as the next step in this process.
Since the second quarter, Trader Joe’s has been working to grow its ecosystem by forming partnerships and integrations with wallets, data clients, and other vectors. This is being done to broaden Avalanche’s and Trader Joe’s exposure to the public.
In addition to the Liquidity Book AMM, which Trader Joe said would deliver “zero slippage trades and discretized liquidity provisioning to all Arbinauts,“ he announced that the protocol’s original AMM, Joe V1 AMM, will also transition onto Arbitrum One.
The Trader Joe’s team was inspired to implement AMM on Arbitrum One by Offchain Labs’ 53.4% market share in total value locked (TVL) among all Ethereum layer-2 scaling solutions. The Trader Joe’s team was also impressed by the company’s efforts to develop an ecosystem of DeFi protocols on the network.
The Team Says Liquidity Book will Strengthen the Ecosystem
The team added that introducing the Liquidity Book will significantly complement the lively ecosystem.
Also, despite stating on Crypto Twitter that it was ready to expand internationally, the Trader Joe’s team has indicated that Avalanche will remain its “true home” and primary priority for all growth efforts.
In addition, Trader Joe made it clear that in this initial phase, its token, JOE, as well as the lending platform Banker Joe, the nonfungible token (NFT) marketplace JoePegs, and its staking platform, would not be joining Liquidity Book AMM and Joe V1 AMM on Arbitrum.
According to the statistics, JOE’s value increased by 13.35 percent during the eight hours, going from $0.163 to $0.185, before reaching a plateau at $0.179 as a direct result of the news.
Based on data, Trader Joe is now the best DEX and third best DeFi protocol on Avalanche with $94.13 million in TVL, behind only Ethereum-native lending company AAVE and Avalanche-based liquid staking provider Benqi.