Rocket Joe, Limitless Liquidity Launch platform on the Trader Joe
Trader Joe Research, Jan — 2022
The Launch of Rocket Joe marks a new dawn for Trader Joe, transforming the platform into a hub for new DeFi primitives. Rocket Joe, the ‘limitless liquidity launch platform’ provides an innovative solution to the sustenance of liquidity on Avalanche.
This is a DeFi 2.0 primitive, that will help to nurture the growth of the ecosystem, in a sustainable manner.
This article will explore at a high level, the features, accessibility, positioning, and benefits of Rocket Joe for both the Joe ecosystem and for Avalanche 🔺
Rocket Joe whitepaper linked at the bottom of this article
What is Rocket Joe?
Fundamentally, Rocket Joe is a type of ‘Launchpad’. But ultimately the solution it provides is innovative in the current DeFi space. Below we explore the core features of Rocket Joe.
Core Protocol Features
- Participating users can earn issuing protocol tokens through a fair market price discovery mechanism.
- Participating protocols can use Rocket Joe to acquire Protocol Owned Liquidity (POL).
- Protocols launching from Rocket Joe will be able to raise a larger pool of liquidity, based on consumer demand for the Issuing protocol token.
- With a larger pool of liquidity being raised, this will discourage front-running bots, easing volatility and providing a favorable trading experience. Users and the Protocol launching, both benefit here.
- Rocket Joe is also a complementary primitive, designed to run in concurrence with all existing Avalanche launchpads.
Think CEX Listing, but on a DEX
How can we access Rocket Joe Liquidity Launches?
Firstly, we introduce rJOE — a new non-transferable token for the Trader Joe ecosystem.
How to acquire rJOE?
- Exclusively earned via staking JOE (similar to a yield farm)
- rJOE will be a new staking option for JOE Stakers
How to use rJOE?
- Users can participate in Rocket Joe launch events by spending rJOE tokens, which represent allocation credits yielded from staking JOE.
- Users will submit rJOE to enter a Launch, this unlocks the ability for the user to deposit AVAX into the Launch pool.
- To deposit 1 AVAX a user will need to submit the total of 100 rJOE.
- rJOE is a non-transferable token with an infinite supply.
- rJOE is burned on use.
High-Level user guide for Rocket Joe
- Users stake JOE to earn rJOE. rJOE is earned over time.
- rJOE can be accrued and used for launches when they open for deposit.
Phase 1: Deposit (2 days)
- When a launch opens for deposit, users can exchange rJOE to gain access to the launch pool.
- Once users have entered the launch pool, they can deposit AVAX to the launch pool. The user will now be allocated a % of that pool based on their AVAX deposit.
- Users can withdraw their deposit at any time, however, there is a maximum withdrawal fee of up to 50% that scales in the final 24 hours. This is to prevent price manipulation ahead of launch.
Phase 2: Withdrawal (1 day) (Optional)
- To enable optimal price correction, users will be given a 24-hour window to withdraw their tokens at a fixed fee of 20%.
- Users may want to withdraw at this stage, if they are not happy with the price of the Issuing protocol token.
- If users are happy with the price and their allocation share, they can remain in the pool for the launch phase.
Phase 3: Launch (Up to 7 days)
- Users will receive LP tokens composed of their deposited AVAX + The issuing protocol token.
- LP tokens will be locked for 3–7 days, dictated by the issuing protocol.
- This can be timed to coincide with the unlock of tokens from an IDO Launchpad.
- The Issuing protocol wishing to sustain accrued liquidity can do so by deploying a double reward farm on the Trader Joe platform.
How has Rocket Joe been built differently?
The mechanics behind Rocket Joe are new to the market, the price discovery mechanism, and pooling of liquidity and is an innovation of existing solutions. Below we compare Rocket Joe to popular market options currently available with a further detailed comparison provided in the whitepaper.
Key Summary of Rocket Joe
- Stake JOE to earn rJOE and enter launches
- Rocket Joe Launches last for up to 10 days
- Launches can run concurrently with one another
- Complimentary to existing Launchpads on Avalanche
- Certain launch parameters can be customized by the issuing protocol
- Launches provide issuing protocols with Protocol Owned Liquidity
- Liquidity Pools are established pre-unlock of IDO Launchpad tokens
- Discourages frontrunning/sniper bots, due to larger liquidity pools
- Users can acquire newly launched protocol tokens, at fair market prices
Rocket Joe positions Trader Joe as a facilitator of sustainable launches for new protocols, furthering our commitment to the continued growth of Avalanche. Protocols launching from Rocket Joe will have the means to jump-start POL, ensuring long-term sustainability. The Price discovery mechanism allows for the market to set a fair and equitable price for all participants and the issuing protocol. Rocket Joe also further expands the Trader Joe platform, providing JOE Stakers with increased utility as well as setting foundations for a wider overhaul to tokenomics.
Rocket Joe will imminently begin testing, with launches commencing thereafter. Stay tuned for upcoming announcements regarding timelines, further content, and launch partners.
Want to read the whitepaper?
Do I have to do anything with my JOE / xJOE now?
No, you cannot stake for rJOE now and you do not need to do anything with your JOE/xJOE tokens currently.
What is Protocol Owned Liquidity (POL)
The acquisition of Protocol Owned Liquidity (POL) is a method of securing funds to support stable protocol liquidity, ensuring an ecosystem’s long-term health. By encouraging the adoption of POL, protocols can improve sustainability by removing the reliance on fair-weather LPs and reducing the cost of incentives needed to sustain liquidity.
Can I withdraw from Rocket Joe?
Yes — Once entered you will have up to 3 days maximum to withdraw, there are varying withdrawal fees over this period.
- On day 1 there is a 0% charge for withdrawal
- On day 2 there is a scale increasing from 0% to 50% over the 24 hours
- On day 3 there is a fixed 20% withdrawal fee
Why is there a withdrawal fee?
Withdrawal fees limit the opportunity for price manipulation, acting as a deterrent to bad actors attempting to manipulate prices.
If withdrawing do users get AVAX or rJOE back?
Entering a Rocket Joe pool requires rJOE tokens, these tokens will be burned on entry and exchanged for AVAX, therefore if you decide to withdraw, you will receive AVAX back.
Where is the withdrawal fee paid?
Any withdrawal fees collected will be allocated towards JOE protocol-owned liquidity, used to ensure the long-term security of the ecosystem.
Under-subscription or Over-subscription
In the event that a Rocket Joe launch is either undersubscribed or oversubscribed, a user participating in the launch may end up with a higher or lower than expected allocation of the issuing tokens. Therefore the market price discovered may be unsatisfactory, the withdrawal phase allows the user to exit before the Launch phase.
Why is rJOE needed?
rJOE is needed to purchase an allocation of the AVAX-TOKEN launch pool. The fixed allocation for Rocket Joe is 100 rJOE/1 AVAX.
When depositing with rJOE, your rJOE is burned and we give you an AVAX allocation.
How can I earn rJOE?
You can stake JOE to receive rJOE, which is accrued over time.
Are there limits when staking for rJOE?
Each participant is allocated a maximum stake in the launch pool. The allocation limit for each launch event is customizable by the protocol.
What happens to rJOE after it is spent?
rJOE is burned for an AVAX allocation at each liquidity launch.
Is rJOE transferable?
rJOE Tokens will not be transferable on the open market.
Can users participate in multiple Rocket Joe Launches?
Users may participate in multiple concurrent launch events provided they have sufficient rJOE tokens to use.
Is Rocket Joe permissionless?
On deployment no, but we plan to build this feature in post deployment.
About Trader Joe
Trader Joe is a one-stop-shop decentralized trading platform native to the Avalanche blockchain. Trader Joe builds fast, securely and aims to serve the community at the frontier of DeFi. Maximize your yield generating activities under one fully integrated roof, providing you with a unique, innovative, and highly accessible DeFi experience.