Incentivizing the JOE Token — Liquidity Farming Phase 2

Trader Joe
3 min readAug 1, 2021


TLDR; $JOE hodlers rejoice! We are announcing a new single-sided xJOE farm, with no IL and up-only; Also, we will prioritize trading volume which lead to more fees for xJOE holders.

Our first month of JOE farming is almost over!

We are now sitting at $3.4M market cap, $23M+ TVL and capturing 18% of daily trading volume on Avalanche, which is an impressive start for a new DEX.

On August 3rd, JOE emissions will reduce from 30 JOE per second to 20 JOE per second. In this post, we outline our strategy for prioritizing JOE token holders while remaining competitive for liquidity growth.

Our Priorities

Going forward, we propose our emissions strategy to prioritize, in this order:

  • Trading Volume: Liquidity farming is a growth bootstrap to achieve TVL for the purpose of attracting trading volume. A high TVL or high JOE token price without capturing trading volume is no good. Trading volume is intimately tied to the value of the JOE token as xJOE receives 0.05% of all trades as revenue. One of our strategies will be to capture trading volume for new tokens, with the recent SHERPA launch a great example of this. We want Trader Joe to be the destination to trade new tokens, and we will leverage farm emissions to do so. Another strategy will be optimization. We will reduce or even cut farms for non-productive assets.
  • Incentivizing JOE holding: Everyone loves a good yield farm, and even better if you can do it on your favorite auto-compounder. For new DEXes, auto-compounder partnerships can bring a lot of TVL and volume. However, this growth comes at the cost of continuous sell pressure on our token. We will continue to spend our emissions on growth, but will favor JOE token holders going forward.
  • Liquidity: Liquidity is still an important metric for us. Currently, we’re just over 16% of Pangolin’s TVL. Our goal for next month is to double that to 32% and we will continue to use our emissions as a lever to achieve that.

What To Expect

So, what can you expect on August 3rd?

  • New xJOE Farm: We will be creating a new xJOE farm on August 3rd. This farm is single-sided, meaning no impermanent loss whatsoever. This should give ample incentives for people to hold JOE.
  • Revamped Staking: Unlike other DEXes, the JOE token earns sustainable revenue and is not just a governance token. We will be revamping the UI so users can easily access staking analytics, and clearly understand its intention.
  • Revamped Farm Selection: Our farm manager, MountainFarmer, is hard at work to evaluate and optimize our farms for phase 2. TLDR; ⬆️ JOE farms and ⬇️ Non-productive farms. Some farms will be removed.
  • Farmers Market: We’ll be making changes to the Farmers Market. Some weeks they worked well, some weeks less so. We’ll be making changes to the format. More details to be announced.

Find out more

Join us on Telegram for our community AMA, on Aug-3, 10:30 AM (EST) where the team will answer all of your questions.