Trader Joe v2 Liquidity Book event

Event · PageRank 0.0008

Overview

Liquidity Book is the automated market maker design introduced by Trader Joe, the largest decentralised exchange on Avalanche, as its version 2 architecture. Instead of a single constant-product curve, Liquidity Book divides a pair's liquidity into discrete price "bins," each behaving as its own constant-sum pool (x + y = k) in which trades execute at a fixed price. The design gives concentrated liquidity and zero slippage within a bin, adds fungible liquidity positions, and applies a variable "surge" fee that rises with volatility to compensate liquidity providers. A later Liquidity Book V2.1 release added Autopools, automated liquidity management strategies, and was audited by Paladin with an additional Immunefi audit contest.

Within the DeFi Intel graph, Trader Joe v2 Liquidity Book connects to 1 tracked entity, most strongly to Trader Joe.

Relations

Top connections in the DeFi Intel knowledge graph (confidence-weighted, 1 of 1 total).

Frequently asked questions

What is Trader Joe's Liquidity Book?

It is Trader Joe's v2 AMM design, which splits a trading pair's liquidity into discrete price bins rather than using a single constant-product curve.

How do liquidity bins work?

Each bin acts as its own constant-sum pool using x + y = k, so trades inside a bin execute at a constant price with no slippage, and liquidity providers choose which price bins to supply.

What did Liquidity Book V2.1 add?

V2.1 introduced Autopools, automated liquidity strategies for LPs. The V2.1 code and Autopools were audited by Paladin and put through an Immunefi audit contest.