cryptonews.com
Trader Joe, a major decentralized exchange (DEX) operating on the Avalanche (AVAX) blockchain, has applied for a 1.83 million ARB grant from Arbitrum DAO.
In a recent announcement shared on X (previously Twitter), Trader Joe said it has submitted a "short-term incentive proposal to the Arbitrum DAO" aimed to enhance spot liquidity within the Arbitrum network.
By doing so, the DEX seeks to benefit developers and offer a more stable and efficient exchange experience.
"The proposed grant aims to foster deep and highly efficient liquidity reserves, whilst also directly growing the Arbitrum ecosystem," Trader Joe wrote in the post.
"This will be achieved through its bespoke Market Making Incentives Program and the innovative Auto-Pool (ALM) product, built on top of its novel AMM, Liquidity Book."
At the time of writing, Arbitrum's native token ARB is trading at $0.8169, meaning that the 1.83 million ARB grant would be worth around $1.5 million.
Notably, the DEX has also said it plans to match the grant by committing up to 433,000 JOE (worth around $105,000) based on the outcome of the execution.
Trader Joe Aims to Attract More Developers to Arbitrum
Additionally, Trader Joe seeks to leverage the opportunities provided by the Arbitrum ecosystem to attract a larger and more diverse pool of builders.
"Trader Joe plans to use this grant to support both long-standing and newly launched protocols native to Arbitrum One but also those who have deployed to Arbitrum One," the proposal reads.
Trader Joe's grant will be used to support protocols native to Arbitrum One, as well as those that have been deployed on the network.
In terms of its execution strategy, the DEX said it will "see 100% of the allocated grant distributed as liquidity mining incentives that will be distributed fully to Liquidity Providers by two incentivization forms, both are unique to the Trader Joe platform and, combined, uphold the values of efficiency, sustainability and accessibility."
The incentives will be distributed over the duration of 84 days (12 weeks) with every 28 days (4 weeks).
Trader Joe also emphasized its commitment to the Arbitrum ecosystem and its dedication to fostering growth and innovation within the space.
Known for its community-first approach and collaborative relationships, Trader Joe has established a strong reputation in the decentralized finance (DeFi) sector.
The DEX has previously contributed to liquidity enhancement through sustainable reward distributions from its Market Maker incentive program.
As reported, Arbitrum, an Ethereum (ETH) rollup hosting asset valued at $5.77 billion, has maintained robust growth in the previous quarter.
In the second quarter of 2023, daily transactions and gas prices on Arbitrum One, one of the critical components of Arbitrum utilizing Arbitrum Rollup technology to enhance transaction throughput while maintaining security, remained steady, averaging 800k transactions.
The quarter also saw a consistent rise in transaction count compared to the previous quarter, indicating heightened activity since the airdrop.
Furthermore, daily active addresses on Arbitrum remained stable at approximately 200k throughout the quarter.