In an effort to expand its user base, the avalanche-based decentralized exchange (DEX) Trader Joe will soon adopt the Ethereum scaling solution Arbitrum.

According to developers, 

“Our aim was to always innovate on the frontiers of [decentralized finance] at a global level,” “Deployment to Arbitrum One is the next step in this global expansion effort.”

The largest DEX and lending service on Avalanche is Trader Joe, which had locked up tokens worth more than $95 million as of Friday. This is the first time the DEX will be deployed outside Avalanche. 

 

The team said they are closely collaborating with Offchain Labs, the group behind Arbitrum One, to create a testnet “within the next few days” before putting it live on the mainnet of Arbitrum One in January 2023.

The expansion 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.

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

In addition to the Liquidity Book AMM, Trader Joe said that Joe V1 AMM, the protocol’s original automated market maker (AMM), would also transfer to Arbitrum One. This will enable “zero slippage trades and discretized liquidity provisioning to all Arbinauts.”

Trader Joe expansion; A strategic move

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 Arbitrum’s 53.4% market share in total value-locked (TVL) across all Ethereum layer-2 scaling solutions. 

The growth and success of the Arbitrum scaling solution make Trader Joe’s expansion a strategic move. According to data from DeFi aggregator DefiLlama, Trader Joe is currently the top-ranked decentralized exchange (DEX) and third-ranked DeFi protocol on Avalanche. 

Arbitrum now has just under $1 billion in total value locked (TVL), an increase of more than $300 million over the previous few months. Currently, GMX, a well-known trading platform, is responsible for almost 40% of this TVL.

 

 

 

 

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Jonatan is a freelancer, content writer, and researcher surrounding the topics of crypto, DeFi, and Web3. He is also the author of a crypto & Web3 book “What Exactly is Crypto”.