Avalanche-based DEX Trader Joe Launches Liquidity Book AMM

Avalanche-based DEX Trader Joe announced that its new AMM called Liquidity Book is live.

Liquidity Book aims to improve capital efficiency, reduce slippage, and minimize the impact of impermanent loss. It introduces a new approach to liquidity provisioning. Liquidity providers (LPs) can deposit liquidity into discrete price bins, each bin is assigned a specific price and LPs may provide liquidity to multiple bins. All liquidity deposited into bins is given fungible token receipts.

In addition, Liquidity Book introduces a fee structure called Surge Pricing, which has two components, a base fee and a variable fee. The base fee represents the minimum fee rate for all trades, and the variable fee is adjusted to account for volatility. The more volatile the assets are in a Liquidity Pool, the higher the variable fee will be.

There are two phases of Liquidity Book's launch. In the first phase, which is now, it deploys a number of stable swap markets and pegged asset markets, including USDT/USDC and sAVAX/AVAX. The second phase will be deployed within weeks, with more markets open.