[Trader Joe] [FINAL] [STIP - Round 1]

UPDATE as of 25 Oct 2023 -

Existing multisig: 0x5d4C14142d8771190Ac67b813eB57225AD0d7cD2

Change to the following multisig: 0x0A56ba03cC70582EA512f44B86d19aCDd631f475

This new wallet is compliant with signers and has been specifiically setup for managing the STIP + separated from other operations.


Applicant Name:


Project Name:

Trader Joe

Project Description:

Trader Joe is a leading Decentralized Exchange (DEX) that facilitates token swaps through use of liquidity pools.

Team Members and Qualifications:

Murloc: Co-founder

Cryptofish: Co-founder

DavideFi: General Manager

Blue: Head of Marketing & Growth

Hero: Arbitrum BD Lead

Alima: Arbitrum Marketing Lead

Project Links:

Website: Trader Joe XYZ | Leading Decentralized Exchange

Twitter: https://twitter.com/traderjoe_xyz

Github: Trader Joe XYZ · GitHub

Product Documentation: Liquidity Book | Trader Joe Help Center

Technical Documentation: https://docs.traderjoexyz.com/

Contact Information:


Telegram: Contact @blueclarity Telegram: Contact @hero_0x


hero@traderjoexyz.com, blue@traderjoexyz.com, davide@traderjoexyz.com, murloc@traderjoexyz.com

Do You Acknowledge That Your Team Will Be Subject to a KYC Requirement?:



Requested Grant Size:

1,510,000 ARB

Grant Matching:

Up to 348k JOE committed based on the outcome of the execution (detailed below)

Grant Breakdown:

Distribution Form Total ARB % Split
Market Maker Incentives: Native Protocols 760,000 50.33%
Market Maker Incentives: Multi-Chain Protocols 240,000 15.89%
Auto-Pool Yield Farms 360,000 23.84%
New To Arbitrum Builder Allocation (Market Maker Incentives) 150,000 9.93%
Total 1,510,000 100.00%

Funding Address:

Funding Address Characteristics:

Multisig: 0x5d4C14142d8771190Ac67b813eB57225AD0d7cD2

Signers 2 out of 3 required

Contract Address:




  • To grow and support the liquidity of native Arbitrum builders
  • To grow and support the liquidity of multi-chain builders that are Arbitrum-aligned
  • Onboard new builders to the Arbitrum ecosystem
  • Increase user discovery of Arbitrum protocols

Key Performance Indicators (KPIs):

How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?

1) Support Builders

Liquidity is the lifeblood of DeFi ecosystems. This grant will help to enhance and deepen spot liquidity, allowing Trader Joe to offer a more stable and efficient exchange experience that directly benefits the builders whom the markets support. Since its expansion to the Arbitrum network, Trader Joe has already enhanced liquidity for several key Arbitrum protocols. This has been achieved through sustainable reward distributions from its bespoke Market Maker incentive program, utilizing its custom-designed Automated Market Maker (AMM) known as Liquidity Book.

2) Signal Growth

The Arbitrum DAO prides itself as a neutral and open governing body, upholding the values of interoperation and open innovation. As such, 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. Trader Joe believes that by supporting multi-chain protocols that have shown commitment towards Arbitrum, this will signal to the wider DeFi landscape that Arbitrum can be a home to builders who have yet to deploy here. With this grant, Trader Joe will aim to directly bolster Arbitrum’s standing as the go-to Layer 2 platform for innovation in the DeFi space.

3) Grow the Arbitrum User Base

Trader Joe aims to leverage the incentives granted to attract a larger and more diverse user base to the Arbitrum ecosystem. Utilizing its unique multi-chain position alongside previously delivered growth campaigns, Trader Joe will amplify the network effects of the allocated grant incentives via an Arbitrum Adventure branded Marketing Campaign. This approach will see resources committed from the Trader Joe ecosystem to raise awareness with the aim of creating a ripple effect that drives user acquisition for the Arbitrum Ecosystem. The phased approach to incentivization outlined in the below execution strategy, will complement the efforts of new user acquisition as Marketing efforts will be timed with each phase transition. The goal is to champion Arbitrum as a vibrant hub ripe with activity, benefiting all participants within the ecosystem.

Justification for the size of the grant:

Trader Joe has built a reputable and trusted name in the space through a commitment to long-lasting, collaborative relationships and a community-first approach. In addition, Trader Joe has a track record of continuous product innovation and has maintained high safety and security standards. Since deploying to Arbitrum, Trader Joe has signaled a significant level of commitment to the ecosystem by not only fostering a great trading and liquidity experience, but also launching community focused efforts to grow Arbitrum with continued community campaigns to be launched and aligned with the Arbitrum Odyssey.

Trader Joe offers a unique DEX experience on Arbitrum with its custom AMM, Liquidity Book. This novel primitive discretizes liquidity, enabling on-chain zero slippage trade execution and surge pricing for liquidity providers. It also offers a granular, hyper-manageable liquidity provision experience. Liquidity Providers using Liquidity Book get full control and precision when managing liquidity where and when it’s needed, making it an excellent hub for liquidity that champions both efficiency and composability. Liquidity Book to date has facilitated over $3.15bn in trading volume on Arbitrum and the Decentralized Exchange has welcomed over 470k unique wallets.

The grant request of 1,510,000 ARB tokens will be utilized to foster and support liquidity growth of key builders that have demonstrated a strong commitment to scaling Arbitrum, and/or have introduced genuine product innovation that has helped to shape the diversity of the Arbitrum One ecosystem. To date this year over 1,400,000 JOE emissions have been utilized towards Arbitrum. Trader Joe will continue to support builders with JOE emissions moving forward.

Execution Strategy:

Trader Joe’s execution strategy 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.

Summarised Distribution % Split Total
Market Maker Incentives 66.23%
Auto-Pool Yield Farms 23.84%
New To Arbitrum Builder Allocation (Market Maker Incentives) 9.93%
Total 100.00%

The incentives will be distributed over the duration of 84 days (12 weeks) with every 28 days (4 weeks) defined as a ‘phase’. A balanced approach will be taken when distributing incentives to ensure consistency throughout the phases. Each phase will see specific protocols selected to receive incentives, enabling a focused approach to incentivization that aids a core objective of the proposal, discovery.

Distribution Form Phase 1 Phase 2 Phase 3 Total
Market Maker Incentives: Native Protocols 17.88% 17.88% 14.57% 50.33%
Market Maker Incentives: Multi-Chain Protocols 5.96% 4.64% 5.30% 15.89%
Auto-Pool Yield Farms 7.95% 7.95% 7.95% 23.84%
New To Arbitrum Builder Allocation (Market Maker Incentives) 3.31% 3.31% 3.31% 9.93%
Total 35.10% 33.77% 31.13% 100.00%

1) Liquidity Book Rewards (Market Maker Incentive Program): Grant % allocated 66.23%

The Liquidity Book Rewards program was first introduced on Arbitrum and has successfully completed 12 Epochs since its inception on February 8th. This program incorporates a unique incentive mechanism through a competitive scoring system, known as the ‘MakerScore’. It encourages liquidity providers to manage their assets more efficiently, enabling them to earn increased trading fees and boost their MakerScore. A higher MakerScore translates to a larger portion of the available rewards. By introducing a competitive element to yield farming with concentrated liquidity, the program promotes sustainability and benefits builders by enhancing the depth of spot liquidity which improves the trading experience by enabling more swaps to execute with zero slippage thanks to the innovations of the Liquidity Book AMM.

Every liquidity provider who deposits into a participating liquidity pool is evaluated over the entirety of an Epoch in which they participate, with each Epoch lasting 14 days and each phase containing two Epochs. At the conclusion of each Epoch, The MakerScore is calculated for all participating liquidity providers. These rewards are then distributed to eligible liquidity providers through a smart contract, which vests the rewards over the duration of 7 days. Liquidity providers who have rewards to claim, can do so directly from the liquidity pool page where they accrued them.

  • Full details for how this program works in its entirety, including formulas used can be found here
  • All MakerScore calculations for every Epoch are published for public view here

Each incentivized partner pool will have rewards allocated in one of the three phases, enabling a focused selection of protocols for each phase that aids user discovery and concentrates reward effectiveness. Trader Joe proposes incentives to the following builders on account of key factors demonstrated, such as proven commitment, contribution and product innovation for the Arbitrum ecosystem.

Native Partners Phase 1 Phase 2 Phase 3 Total ARB Allocation % of Total Grant
GMX (GMX) 120000 120000 7.95%
Treasure (MAGIC) 120000 120000 7.95%
Radiant (RDNT) 120000 120000 7.95%
Camelot (GRAIL) 90000 90000 5.96%
Dopex (DPX) 90000 90000 5.96%
Jones Dao (JONES) 90000 90000 5.96%
Lodestar (LODE) 50000 50000 3.31%
WINR (WINR) 50000 50000 3.31%
Nitro Cartel (ALP) 10000 10000 0.66%
Savvy (SVY) 10000 10000 0.66%
Stella (ALPHA) 10000 10000 0.66%
Total 270000 270000 220000 760000 50.33%
Multi-Chain Partners Phase 1 Phase 2 Phase 3 Total ARB Allocation % of Total Grant
Stargate (STG) 70000 70000 4.64%
Pendle (PENDLE) 60000 60000 3.97%
Gains (GNS) 50000 50000 3.31%
Woo (WOO) 30000 30000 1.99%
Level (LVL) 20000 20000 1.32%
Swell (swETH) 10000 10000 0.66%
Total 90000 70000 80000 240000 15.89%

2) Auto-Pools (Automated Liquidity): Grant % allocated 23.84%

As a DEX that is supporting liquidity for Arbitrum builders, deep spot liquidity for core pairs is important to ensure that users can seamlessly trade in and out of core tokens with high efficiency.

Auto-Pools is the latest product innovation by Trader Joe. They are designed to automate the balancing of liquidity in a Liquidity Book pool, offering users a highly accessible way to access concentrated liquidity, without the requirement to directly manage a position. Auto-Pools are utilized for core ‘blue chip’ pairs and will serve as an accessible way for users to access Arbitrum Token liquidity mining rewards via a one-click yield farming experience, whilst also supporting the core trading routes that serve all builders and participants in the Arbitrum One ecosystem.

The allocated incentives will be spread evenly across the total incentive period of 3 months and the rewards will be streamed in a linear distribution that is uninterrupted over that complete timeframe. Over 10% of the allocated grant will be put towards the ARB/ETH pair to ensure robust liquidity throughout the incentivization period.

AUTO POOLS Phase 1 Phase 2 Phase 3 Total ARB Allocation % of Total Grant
ETH/USDC 50000 50000 50000 150000 9.93%
WBTC/ETH 10000 10000 10000 30000 1.99%
ARB/ETH 60000 60000 60000 180000 11.92%
Total 120000 120000 120000 360000 23.84%

3) New to Arbitrum Builder Allocation (via Market Making Incentives): 9.93%

Trader Joe proposes allocating 150,000 ARB (9.93% of the grant) to support new builders who either launch on Arbitrum during the incentivization period or deploy to it within the same timeframe. This allocation aims to bolster the growth of the Arbitrum Ecosystem by providing crucial early-stage support to promising projects, ensuring their long-term success. Trader Joe has consistently welcomed new builders to Arbitrum and this allocation directly aligns with the Arbitrum DAO’s objectives of expanding the ecosystem.

Any unused ARB would be returned at the end of the proposed incentivization period.

Grant Matching: JOE allocation committed up to 348k tokens

As part of the proposed KPI framework, Trader Joe will assess each participating Liquidity Pool 28 days following the end of the incentivization period for that specific Liquidity Pool. If the average TVL over a rolling 7d period falls below 25% of the peak measured TVL over a rolling 7d period during the incentivization period, JOE incentives equivalent to 10% ($ value) of the ARB tokens allocated to the pool will be distributed for a minimum of 2 weeks to a maximum of 4 weeks.

Grant Timeline:

Execution of the incentives will be structured over 3 phases, each lasting 28 days that run consecutively. Breakdown of the phases and reward allocations across the incentive mechanisms can be viewed above in the Execution Strategy.

  1. Phase 1: Starting from when the grant is received and last for 28 days
  2. Phase 2: Starts immediately after Phase 1 has finished and lasts for 28 days
  3. Phase 3: Same as above, lasting for 28 days
  4. Entire distribution of incentives: 84 consecutive days

Do you accept the funding of your grant streamed linearly for the duration of your grant proposal, and that the multisig holds the power to halt your stream?

Yes - We acknowledge the linearity of the incentives and the possibility of their altering. In case incentives would be halted the incentives granted till that time will be fully distributed according to the proposed schedule in proportion to the amount received for the specific epoch.


Is the Protocol Native to Arbitrum?:

Trader Joe is a multichain DEX.

On what other networks is the protocol deployed?:

Trader Joe is also deployed on Avalanche, BNB, and Ethereum mainnet.

What date did you deploy on Arbitrum?:

December 2022.

Protocol Performance:

  • 4th largest AMM based DEX of all time with $85bn cumulative trading volume (source: https://defillama.com/dexs)
  • $10bn cumulative trading volume since launch for the Liquidity Book Protocol
  • $3.15bn cumulative trading volume since deployment on Arbitrum
  • $250m cumulative volume on Arbitrum (last 30 days)
  • Peak TVL of $59m on Arbitrum
  • Total Unique Wallets on Arbitrum: 473k

Protocol Roadmap:

Continued focused on the core product line: Liquidity Book V3

Audit History:

SECTION 5: Data and Reporting

Is your team prepared to create Dune Spells and/or Dashboards for your incentive program?:

Yes, Trader Joe will create a dedicated flipside dashboard to track and report KPIs as part of the usage of incentives from this grant.

Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread?

Yes we can supply bi-weekly updates highlighting changes presented in the Grant Dashboard being built on Flipside (mentioned above).

Does your team acknowledge that failure to comply with any of the above requests can result in the halting of the program’s funding stream?: [Y/N]:



Hello @traderjoe thank you for your application!

This part of this proposal falls into somewhat of a gray area as funds are not meant to be used for development costs. Could you provide more details as to what these market-making incentives entail?

1 Like

gm! Thank you for the feedback

To elaborate, this allocation would go towards incentivizing LPs for new projects that deploy onto Arbitrum during the duration of the STIP via our Market Maker Incentives program. If no new protocols were to deploy during STIP, these ARB will be returned to the DAO. 100% of the requested ARB allocation will be used as incentives within our grant.


As a disclaimer, I’m slightly biased about TJ: I’ve been following them for a while and I really love both the team and their product.

I have a lot of respect for the fact that they tried to do their own thing rather than just sticking with the Uniswap AMM. Some things have been working well, others a bit less, but on the whole they managed to build a very commendable product. Having them on Arbitrum is a great addition.

About the proposal, I honestly don’t have much to comment:

  • The selection of pairs is very solid, with a large focus on native ones (they have even included a direct competitor with GRAIL, which says a lot about their mentality)
  • The dedicated program to bring new or external builders to Arbitrum is a great idea, imho that’s exactly how a DAO should want its applicants to think.

I will just add a few personal comments to temper the previous points:

  • As a non-native protocol, I believe the requested amount is a bit high. I wouldn’t recommend to make a significant cut, but considering the qty of applications and the 50m total cap of the program, I think we should be more conservative / tip the balance a bit more in favor of native ones
  • I would have liked to see more emissions directed to ARB, as well as the addition of an ARB/stable pair

Apart from these two points, which I believe could easily be adjusted if necessary, I’m very supportive of this proposal.


Thank you for this clarification! Your submission now meets all requirements to be considered for a snapshot vote.


Great details, love to see the grant to be used to facilitate more collaboration between Arbitrum eco projects.


TJ is a staple of the arbitrum ecosystem and this proposal is very fair in my opinion

keep it up lads

1 Like

TraderJoe is a chad protocols. Not only cause of their branding, but also cause the team was wise enough to pivot from being a native Avax protocol to a multichain one, and were able to expand when most of Avax protocols just hadn’t the idea to get off from a chain that is currently suffering the most in this bear market.
This testify that the team is made by people with a long term vision. And this is THE key factor, in any business you can build.

Full suppport.


d2.finance supports TraderJoe application! pleased to see incentives in protocols where we actively market making in our V2 vaults :saluting_face:


Trader Joe team is top-notch and a net benefit to the Arb eco. The proposal is well-detailed and deserving of consideration. LFJ!


A strong DeFi protocol, which has made smart business decisions and shown skill at building. I’m in favour of this TJ proposal.


Despite TraderJoe being clearly not an arbitrum native protocol, its undeniable it’s a good product with top performance metrics among other competing AMMs in Arbitrum.

I find very interesting the idea proposed of incentivizing more native protocols than multichain ones to compensate the fact that TraderJoe isn’t – seems like a fair tradeoff that is positive-sum for the ecosystem.

Taking into account its not a native protocol + their good AMM metrics on the chain, I’d say the grant size relative to total grant size is very reasonable. If it was a fully native protocol I would suggest it should be bigger.

Overall, a very well balanced proposal and not much to critizise.


Very ecosystem-oriented proposal. I can’t argue with much. Despite not being a big TJ user, I respect the attempt to invigorate the ecosystem. I’m in favour of the proposal


I’m very familiar with Trader Joe, since their fisrt inception protocol y Avalanche and im sure that this on boarding process and liquidity incentives are aligned with the goals of the whole project.
Nice to see the adoption that it’s growing here.


As a TraderJoe user but also as a partner protocol with Lodestar Finance, I am fully in support of this proposal.

The team at TraderJoe has demonstrated their exceptional professionalism and their commitment to expanding Joe’s presence on Arbitrum is positive for our ecosystem


Other than being a long time user of Trader Joe’s DEX and their other products I had the pleasure of interacting countless times over the past 2 years with their team members and have to say I’m incredibly happy of how far they have come and all the innovations they have brought to life on different chains.

It’s clear Trader Joe has big plans for their Arbitrum expansion, testified by the countless quality partners they have in the Arbitrum ecosystem.

This grant is well put together and I am in full support. Good luck team!


Fully support the proposal by Trader Joe. They have provided healthy TVL for Arbitrum thus far, and this proposal would help to continue in that goal. Support for such a proposal also signals to other protocols looking to move to arbitrum from other chains that they are welcome here and would help the chain to grow further imo, attracting more builders and smart teams such as TJ.

I have had the pleasure of meeting and discussing with the TJ team many times and as OG builders, I support them here. Also, it should be considered that they have committed to some grant matching which is a sign of commitment to Arbitrum.


I personally fully support this traderjoe proposal.

TJ has been one of the first protocols I had the cahnce of having a close relationship with, and despite high and lows, I strongly believe their role in the ecosystem is valuable.

I enjoyed a lot the way the proposal breaks down in details the distribution schedule into phases, as well as how detailed the incentivised pairs are.

Amazing job @BlueClarity , @DavideFi, @traderjoe and the rest of the TJ team!


TraderJoe have been long term builders in the space, and have shipped quite a few innovative products like liquidity book and autopools.

We at Stella have worked with them to build leveraged LPing strategies on top of liquidity book. Given our experience of working together and their track record of shipping great products, I support their grant proposal.

The Trader Joe team is definitely one of the most innovative and community-oriented teams within the entire ecosystem. Their priority towards wider ecosystem growth is clearly evident in their proposal and the reasonable size of the grant request. We, at Timeswap, have had the pleasure to work with them in launching multiple innovative pools for APT tokens and StakedJoe, among others, and they’ve always been a very collaborative and supportive team. We fully support TJ’s proposal and are confident that they will do full justice to the requested grant.