We are pleased to announce that Binance-Peg BUSD is now available on Trader Joe - a ‘one-stop-shop’ decentralized trading platform that offers a comprehensive DeFi experience. With this collaboration, Binance-Peg BUSD users can now access TJ’s ‘Liquidity Book’, which unlocks enhanced efficiency for Liquidity Providers and Traders through the design of the innovative Automated Market Maker (AMM). Liquidity Books' key innovations enable zero slippage swaps for Traders, helping to reduce the cost of swapping tokens. Also, dynamic fees improve the profitability of Liquidity Providers by mitigating Impermanent Loss.
About Trader Joe
Trader Joe is a one-stop-shop decentralized trading platform native to the Avalanche blockchain. Trader Joe offers a comprehensive DeFi platform where you can Trade, Lend and Leverage, participate in a Launchpad and shop for NFTs. Visit Trader Joe and discover more.
About TJ’s liquidity book
Liquidity Book, built by Trader Joe, is the biggest innovation for Automated Market Makers (AMMs) since Uniswapv3, unlocking enhanced efficiency for Liquidity Providers and Traders, as well as unlocking greater composability to act as a true building block for DeFi.
Discretized Liquidity
Liquidity is discretized into a bin architecture. This enables Liquidity Providers more flexibility with their liquidity, allowing the deployment of completely bespoke strategies in a fully decentralized and on-chain way. The discretized bin architecture also enables innovation for Traders in the form of lower swap fees thanks to zero slippage. Zero slippage on swaps enables trades to execute at quoted prices with more accuracy, improving the efficiency of trading on a decentralized exchange.
Variable Fees
Liquidity Book also mitigates the impact of Impermanent Loss that is suffered by Liquidity Providers. It does this by utilizing a volatility-adjusted dynamic fee, helping to increase trading fees that are accrued by Liquidity Providers. This increased fee accrual helps to offset potential Impermanent Loss that is suffered during times of market volatility.
Fungible Tokens
All liquidity deposited into Liquidity Book is given a fungible token receipt, an innovation over previous concentrated liquidity AMMs (that use a non-fungible token receipt). Fungible liquidity receipts improve composability, which enables a greater level of integration from protocols and new products. Liquidity Book AMM can therefore act as a true ‘DeFi Lego piece’ that can be integrated and built on top to further enhance its value within any ecosystem.
About Binance USD (BUSD) and Binance-Peg BUSD
BUSD is a regulated, fiat-backed stablecoin pegged to the U.S. dollar. The Paxos-issued BUSD stablecoin, as well as its reserves, are subject to strict regulatory oversight by the New York Department of Financial Services. BUSD is backed by reserves held in either or both (i) fiat cash in dedicated omnibus accounts at insured U.S. banks and/or (ii) U.S. Treasury bills (including through repurchase agreements and/or money-market funds invested in U.S. Treasury bills).
Binance-Peg BUSD, which is not issued by Paxos nor regulated by NYDFS, is a separate product. Binance independently mints Binance-Peg BUSD on other blockchains (e.g., BNB Chain, Polygon, Avalanche) and pegs the tokens to BUSD on a one-to-one basis. This allows holders of both tokens on the Binance platform to swap tokens between Ethereum and other blockchains.
