TraderJoe is a decentralized finance (DeFi) platform built on the Ethereum blockchain. It allows users to trade, lend, borrow, and earn interest on their digital assets without the need for intermediaries. The platform was launched in 2020 and was founded by unknown individuals or a group using the pseudonym "Trader Joe". Its name is inspired by the popular grocery store chain "Trader Joe's". TraderJoe has gained popularity in the DeFi community for its user-friendly interface and innovative features.
TraderJoe offers several benefits compared to its direct competitors, making it a preferred choice for many in the blockchain industry.
Firstly, TraderJoe provides a highly secure and transparent platform. It leverages the immutability and decentralization of blockchain technology to ensure that all transactions are secure and tamper-proof. This is in contrast to some of its competitors who may lack the same level of security and transparency.
Additionally, TraderJoe offers competitive pricing and low transaction fees. This is crucial for traders looking to optimize their profits and reduce costs. Some of its direct competitors may have higher fees or less favorable pricing models, making TraderJoe an attractive option for cost-conscious users.
Moreover, TraderJoe provides a user-friendly interface and seamless user experience. The platform is designed with simplicity in mind, allowing users to easily navigate and execute trades. In comparison, some of its competitors may have a steeper learning curve or complex interfaces, which can be daunting for newcomers in the space.
Furthermore, TraderJoe offers a wide range of supported cryptocurrencies and trading pairs. This allows users to have more flexibility and diversify their portfolios. Some competitors may have a limited selection of cryptocurrencies or trading options, limiting users' opportunities.
Overall, TraderJoe's benefits of security, competitive pricing, user-friendly interface, and wide range of supported cryptocurrencies make it stand out among its direct competitors. Traders seeking a reliable and efficient platform can find value in choosing TraderJoe for their trading needs.
TraderJoe is a decentralized trading protocol built on the Ethereum blockchain. It utilizes an automated market maker (AMM) model to facilitate cryptocurrency trading. The core technology behind TraderJoe is smart contracts, which are self-executing contracts with the terms of the agreement directly written into the code.
TraderJoe operates on the Ethereum network, leveraging its robustness and security. Ethereum is a decentralized blockchain that supports the execution of smart contracts, enabling the creation and deployment of decentralized applications (dApps) such as TraderJoe.
The functioning of TraderJoe revolves around liquidity pools and the use of its native token, JOE. Users can provide liquidity to these pools by depositing their cryptocurrency assets. These pooled funds enable trading on the platform. As a reward for providing liquidity, users receive LP (Liquidity Provider) tokens representing their share in the pool.
Traders can then swap tokens directly through the AMM model, which relies on a predefined mathematical formula to determine token prices. The decentralized nature of TraderJoe ensures that trades can be executed without the need for intermediaries, providing users with greater control and transparency over their assets.
Furthermore, TraderJoe supports yield farming through its farming pools, allowing users to earn additional tokens by staking their LP tokens. This mechanism incentivizes users to provide liquidity while promoting the growth of the platform.
Overall, TraderJoe leverages the power of smart contracts and the Ethereum blockchain to provide a decentralized trading experience for users, enabling them to trade, provide liquidity, and participate in yield farming in a secure and efficient manner.
DIA takes a comprehensive approach to sourcing trade data from various types of exchanges, including decentralized finance (DeFi) and non-fungible token (NFT) exchanges. The process differs depending on the type of exchange.
For centralized exchanges like Coinbase, Kraken, and Binance, DIA utilizes scrapers to directly collect trade data from the exchange databases. This is done using Rest APIs or WebSocket APIs. The frequency of data collection varies between exchanges, ranging from 1 to 7 seconds. By retrieving the data as close to the source as possible, DIA ensures high precision and real-time updates.
In the case of decentralized exchanges, DIA collects data directly from the underlying blockchains by subscribing to swap events in liquidity pools. This allows DIA to retrieve trading data directly from the blockchain itself, ensuring enhanced data accuracy. Examples of decentralized exchange sources include Uniswap, Curve Finance, and PancakeSwap.
When it comes to NFT marketplaces, DIA captures live trading data by integrating with the smart contracts of various marketplaces. The retrieval period for NFT trading data ranges from 20 seconds to 1 minute, covering real-time transactions happening on the integrated marketplaces. By focusing on the actual transactions rather than unreliable bids and offers, DIA ensures data precision. Notable NFT integrated exchange sources include Blur, X2Y2, OpenSea, and TofuNFT.
This comprehensive data management strategy enables DIA to provide highly accurate and customizable price feeds for cryptocurrencies, NFTs, and other assets. By leveraging a network of data sources and utilizing blockchain oracles, DIA ensures that the trade data obtained is reliable and verifiable for use in smart contracts and other applications.
DIA has a process in place for computing trade data from TraderJoe to build price feed oracles, depending on the type of exchange we are referring to (DeFi or NFT).
For DeFi exchanges, the process involves two steps. The first step is data cleaning and outlier detection to ensure the resilience of the price estimation process. This step involves removing trades with prices that deviate too much from the current market price. Outliers are detected and excluded using an Interquartile Range (IR) filter. Trades falling into the first or last quartile are filtered out, and only trades falling into the "middle" quartiles are considered for further processing.
The second step is the application of price determination methodologies. DIA uses various trade-based filters to calculate a single USD price value for each asset. One example is the Volume Weighted Average Price (VWAP), which takes into account the different volumes of trades. Another example is the Moving Average with Interquartile Range Filter (MAIR), which calculates the weighted average price based on the volume of trades.
For NFT exchanges, the process is different. The trade data is processed in two steps. The first step involves feeding the data through cleansing filters to exclude market outliers and manipulation techniques. The second step is the application of pricing methodologies to determine the final price point. DIA offers methodologies like the Floor Price, which provides the lowest sale price of an NFT collection recorded on the blockchain during a given time window. DIA also offers the Moving Average of Floor Price methodology, which returns the moving average of a collection's floor price.
It is important to note that market manipulation techniques like wash trading and floor sweeping can impact the accuracy of the floor price. DIA implements filtering mechanisms to mitigate these manipulations and provide more realistic and reliable NFT floor prices.
In conclusion, DIA uses a comprehensive process involving data cleaning, outlier detection, and the application of different pricing methodologies to compute trade data from TraderJoe and build price feed oracles for both DeFi and NFT exchanges.
Instead of distributing pre-calculated data feeds, DIA covers the whole data journey from individual trade collection, and computation to the last mile of the feed delivery.