Trader Joe enters the Ethereum ecosystem for the first time

On December 1, the decentralised trading platform announced its “multi-chain” expansion into the Ethereum layer-2 scaling solution Arbitrum One. This announcement comes about a month after the platform announced its intention to expand to new markets and form new partnerships in the face of a third-quarter decline in TVL and user activity.

Financial decentralisation protocol (DeFi) To gain access to new markets and increase user engagement, Trader Joe has launched its very first expansion from the Avalanche ecosystem onto the Ethereum environment.

In order to officially install it onto the Arbitrum One mainnet in January 2023, the team said they are closely collaborating with Offchain Labs, the group behind Arbitrum One, to launch a testnet “within the next few days”:

One of the most prominent recent collaborations is between Crypto.com and Trust Wallet.

In addition to the Liquidity Book AMM, Trader Joe stated that the protocol’s original AMM, Joe V1 AMM, would also transfer to Arbitrum One and deliver “zero slippage transactions and discretized liquidity provisioning to all Arbinauts.”

We look forward to showcasing the unique AMM built on Avalanche and working with new partners to benefit the combined DeFi ecosystems of Arbitrum and Avalanche. Deployment to Arbitrum One is the next step in this worldwide growth effort.
The rollout happens at the same time that Trader Joe has, since the second quarter, broadened its ecosystem through alliances and integrations with wallets, data clients, and other vectors in an effort to increase awareness of Avalanche and Trader Joe.

The team behind Trader Joe said they were inspired by Offchain Labs’ efforts to create an ecosystem of DeFi protocols on the network, which is evident from its 53.4% market share in total value locked (TVL) across all Ethereum layer-2 scaling solutions, when asked why the company decided to deploy its AMMs on Arbitrum One.

The team continued, “Deploying (the) Liquidity Book will be a tremendous contribution to the vibrant ecosystem.
The Trader Joe team acknowledged that despite declaring on Crypto Twitter that it was “ready to go worldwide,”

Additionally, Trader Joe made it clear that Liquidity Book AMM and Joe V1 AMM on Arbitrum will not join its token, JOE, the loan platform Banker Joe, the nonfungible token (NFT) market JoePegs, and its staking platform “in this initial phase.”

According to data from CoinGecko, the statement appeared to have a good effect on the price of JOE, which rose 13.35% over the course of eight hours from $0.163 to $0.185 before settling at $0.179.

According to data from DeFi aggregator DefiLlama, Trader Joe is presently the top-ranked decentralised exchange (DEX) and third-ranked DeFi protocol on Avalanche with $94.13 million in TVL, lagging only Ethereum-native lending platform AAVE and Avalanche-based liquid staking provider Benqi.

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