TraderJoe’s JOE V2: Can It Compete With Uniswap V3?

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TraderJoe’s JOE V2: Can It Compete With Uniswap V3?

TraderJoe has launched its JOE V2 update with Liquidity Book (LB) and seems to be gaining traction. With TVL skyrocketing, JOE almost tripling in value in just one month, and TVL from Arbitrum raised by $30m, the question remains: can TraderJoe become a formidable opponent of Uniswap?

What is TraderJoe?

Trader Joe – JOE presents itself as the “One-stop-shop for decentralized trading on the Avalanche Ecosystem” offering users a crypto application as a platform for combined features such as trading in crypto, swapping, farming, and more to earn rewards. The JOE DEX – Decentralized Exchange directly competes with popular DEXs such as UniSwap, PancakeSwap, and SushiSwap. The native token of Trader Joe is JOE, a governance token that allows users to vote on future developments and partnerships, and can also be used to earn rewards.

What is TraderJoe V2?

Trader Joe is set to usher in a new era of DeFi yield farming on Avalanche, Arbitrum, and BNBChain with Liquidity Book V2.1. This feature release will introduce ‘Auto-Pools,’ which automate liquidity positions, dynamically update strategies, and deliver an accessible user experience through one-click deposit yield farming. The combination of Liquidity Book and Auto-Pools democratizes accessibility to active liquidity provisioning, making DeFi easy.

This also coincides with the removal of the business source license of Uniswap back in 2021 so that others can’t fork V3. Uniswap V3 protocol license has expired, allowing for code forking, which may reduce Uniswap’s position in the DEX market. TraderJoe’s approach shows promise, but more development time may be needed to gain market share from Uniswap V3.

What About Swap Fees on TraderJoe?

LB’s swap fee includes a base fee of 0.02% to 0.8% and a variable fee, unlike UNI V3’s flat fee. Customizable bins on TraderJoe v2 help LPs optimize liquidity capital, and fees are earned only within the active bin.

How Is TraderJoe Performing?

TraderJoe’s JOE V2 update with Liquidity Book has been gaining traction and showing positive performance. TraderJoe’s metrics are showing positive performance, with the launch of ARB and TraderJoe v2 update driving up the price of JOE. The platform’s effective performance with its new update is a promising sign for its future.


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