Trader Joe, a central on-chain marketplace on the Avalanche blockchain, has announced the launch of Boost, an incentive campaign aimed at revitalizing DeFi on Avalanche. Over the next four months, AVAX incentives will be distributed across liquidity pools, bringing back the excitement of the 2021 DeFi farms era and supporting the launch of new DeFi protocols.
Trader Joe: Boosting Avalanche
Boost is designed to enhance the entire Avalanche ecosystem by strengthening core liquidity venues across various platforms. Trader Joe, the leading token hub on Avalanche, aims to unite and collaborate with native builders to set a solid foundation for the future of DeFi on Avalanche. By participating in Boost, users can help support this resurgence and benefit from AVAX incentives.
The Aim of Boost
Liquidity is crucial for a prosperous DeFi ecosystem. The Boost program targets to level up the ecosystem by bolstering liquidity in key venues. This initiative allows new and existing Avalanche native builders to collaborate, creating a stronger and more resilient DeFi infrastructure.
How to Earn Boost Rewards
Boost rewards are distributed as AVAX incentives. To earn these rewards, users need to deposit liquidity into participating markets on the Trader Joe platform. This straightforward process allows users to actively support the DeFi ecosystem while earning incentives.
Boost Program Overview
Boost rewards will be distributed over approximately four months, with numerous pools available simultaneously. This period provides ample opportunity for participants to earn AVAX rewards and explore the offerings of Trader Joe and its partners. Every two weeks, the allocated rewards and markets will be reviewed, with potential adjustments based on market dynamics. Some markets may see additional incentives, while others may have incentives removed.
Market Details
Phase 1 of the Boost campaign will last for four weeks, with changes to incentives possible within each phase. Key markets with allocated Boost rewards will be highlighted, allowing users to easily identify where to deposit their liquidity.
Quick Start Guide for Rewards
If you are confident in managing concentrated liquidity, follow these steps to start yield farming:
- Navigate to the Pool Page.
- Select the ‘Has Rewards’ filter.
- Identify your preferred liquidity pools.
- Deploy your liquidity over your desired range.
- Claim your AVAX tokens as you earn them.
- Optional: Track the ‘Boost’ channel in the Trader Joe Discord for updates.
New Users: Learning to Manage Concentrated Liquidity
If you are new to managing concentrated liquidity, it is recommended to read through the provided guides:
- Basic Introduction: Primer to Liquidity Book
- Risks: Your Risks as a Liquidity Provider
Liquidity Book: Your Master Guide
Concentrated liquidity requires active management. As a liquidity provider, you concentrate your tokens over a fixed price range that you set. Prices fluctuate as traders buy and sell, so your goal is to keep your liquidity within the active trading range to earn a share of the fees.
Guides for Managing Liquidity:
- Shapes and Strategies: What are Shapes?
- Single-Sided Liquidity: Deploy a Single Side
Earning Incentives
To earn rewards, your liquidity must stay within the reward range. This range moves with the price of the assets in the pool. The proportion of your liquidity relative to others determines your share of the rewards.
Guides for Earning Incentives:
- Concentrated Incentives: Full Guide
- Rebalancing: Managing Your Position
Rebalancing Liquidity
To earn fees, your liquidity must be within the active trading range. The active bin, shown on the UI, indicates where your liquidity is currently positioned.
If the asset prices move outside your chosen range, your liquidity becomes ‘out of position,’ meaning you are no longer earning fees or rewards. You can choose to do nothing, reposition, withdraw, or add more liquidity, each with its own pros and cons.
Considerations and Risks:
Your decision will depend on market trends, gas fees, potential for impermanent loss, and your goals. Detailed guides help you understand the best strategies for managing your liquidity position.
Support and Caution:
For technical support, join the Trader Joe Discord and open a support ticket. Be cautious of scammers and never trust unsolicited messages requesting you to connect your wallet.
