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Since launching the V2 platform on Arbitrum on February 1, 2023, Trader Joe’s has quickly risen to become one of the top five decentralized exchanges in terms of trading volume.
This initiative introduces a liquidity incentive scheme to encourage more deposits to trade in ARB, ETH, and USDC, distributing 300,000 tokens worth around $171,000. The deadline for the incentive scheme is April 6.
According to the project’s social media accounts, Traders were responsible for 15.7% of the first week’s ARB trading volume.
While the JOE token incentives help make ARB token more liquid, the team’s ingenuity in increasing the capital efficiency of DEX is the main driver of its expansion.
Trader Joe’s Progress In The DEX Space Ranking
In Q4 2022, Trader upgraded to version V2 and introduced the Liquidity Book (LB) model, which competes with Uniswap’s V3 liquidity model.
The trader approach allows liquidity providers (LPs) to add liquidity at certain “price points”. According to Delphi research, the design provides “zero-slippage” and “allows for much greater flexibility due to its interchangeability and provides superior flexibility and experience for gramophone records.”
DEX receives an award from Power DeFi user Yash for its discovery, which leads to organic growth.
The goal of the Uniswap V3 and LB models is to concentrate liquidity around active trading ranges to maximize costs for liquidity providers and minimize slippage for traders.
Joe’s appears to be well positioned to gain market share in emerging ecosystems such as Ethereum ETH Layer-2s and sidechains. In addition to Uniswap, the project faces competition from milestones mandated by source code licensing policies.
The code license for Uniswap V3 ends on April 4th, allowing the team to change the design of their DEX. PancakeSwap, the leading decentralized exchange (DEX) on the Binance Chain, was one of the first teams to use the Uniswap model to set up a trading desk on the BNB Chain and Ethereum-based blockchain.
Price Overview For Joe
Based on a recent trading price of $0.57, Delphi research predicts that sJOE token holders will see a P/E of 15.5% to 7.5% following the release of V2.1 in the second week of April.
Token Terminal data shows that a price to earnings ratio of less than 15.2 would place Trader Joe’s among the top 15 protocols regarding actual earnings for token holders. Regarding widely used DeFi protocols such as dYdX, SushiSwap and Convex Finance, the P/S ratio is determined by dividing the market value of the fully diluted token by its annual revenue for token holders, which is greater than 15.
Related Reading | This Ethereum L-2 DEX Stole $100K of User Funds
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