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Trader Joe’s takes its first step into the Ethereum ecosystem

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Decentralized finance (DeFi) protocol Trader Joe has announced its first Avalanche expansion into the Ethereum ecosystem, as part of its plans to reach new markets and increase user activity.

The decentralized exchange platform announced its “multi-chain” expansion of its Ethereum layer-2 scaling solution Arbitrum One on December 1 and follows that about a month after announcing its intention to expand into additional markets and forge new partnerships amid drop TVL and user activity in the third quarter.

the team advertiser They are working closely with Offchain Labs – the team behind Arbitrum One – to launch a test network “over the coming days” before it is officially deployed to the Arbitrum One mainnet in January 2023:

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“Deployment to Arbitrum One is the next step in this global expansion effort, and we look forward to introducing the innovative AMM built on Avalanche, as well as working with new partners to benefit Arbitrum and Avalanche’s joint DeFi systems.”

The deployment comes as Trader Joe’s has also expanded its ecosystem through partnerships and integrations with wallets, data clients and other vectors” since Q2 as a way to spread exposure to Avalanche and Trader Joe’s itself.

Notable among the recent partnerships is that of Trust Wallet and Crypto.com.

Trader Joe’s added that the protocol’s original AMM — the Joe V1 AMM — will also be porting to Arbitrum One in addition to the Liquidity Book AMM, which will bring “zero slippage deals and provide discretionary liquidity to all Arbinauts.”

As for why Trader Joe’s chose to deploy AMMs on Arbitrum One, the team said they were impressed with Offchain Labs’ effort in building an ecosystem of DeFi protocols on the network, which demonstrates 53.4% Market share in total value locked (TVL) across all Ethereum layer-2 scaling solutions.

“The deployment of the liquidity ledger would be a great addition to the vibrant ecosystem,” the team added.

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Image shared by Trader Joe regarding Arbitrum’s latest expansion. source: Joe content.

Despite announcing “time to go global” on Crypto Twitter, the Trader Joe’s team asserted that their “true home” and “top priority for all growth efforts” will continue Avalanche.

Trader Joe’s also clarified that its token, JOE, as well as Banker Joe’s lending platform, Non-Fungal Token (NFT) Market and Trading Platform will not join Liquidity Book AMM and Joe V1 AMM on Arbitrum “at this initial stage.”

Related: New fix for proposed temporary loss curse on Avalanche

This announcement seemed to have a positive impact on the price of JOE, which rose by 13.35% from $0.163 to $0.185 over eight hours before cooling down to $0.179, depending to data from CoinGecko.

Trader Joe’s is currently the third-best decentralized exchange (DEX) and DeFi protocol on Avalanche with $94.13 million in TVL, trailing only Ethereum-native lending platform AAVE and Avalanche-based liquidity provider Benqi, depending to data from DeFi aggregator DefiLlama.