TraderJoeV2.1-Arbitrum is an automated market maker (AMM) protocol built on the Arbitrum Layer 2 scaling solution. It enables users to swap tokens with low fees and fast transactions. The protocol's purpose is to provide a seamless trading experience while reducing the scalability issues faced by Ethereum. TraderJoeV2.1 was founded by an anonymous developer or team and is not affiliated with any specific company or organization. Its exact founding year and naming origins are unknown.
TraderJoeV2.1-Arbitrum offers several benefits compared to its direct competitors in the blockchain ecosystem. One of the key advantages is its scalability. TraderJoeV2.1-Arbitrum is built on the Arbitrum protocol, which is known for its high throughput and low transaction fees. This allows traders to execute their transactions quickly and cost-effectively, making it an attractive choice for high-frequency trading.
Another benefit of TraderJoeV2.1-Arbitrum is its interoperability. It allows for seamless integration with other DeFi protocols and platforms, enabling users to access a wide range of financial services and products. This interoperability sets it apart from its competitors by providing a more comprehensive and interconnected trading experience.
TraderJoeV2.1-Arbitrum also boasts enhanced security features. The Arbitrum protocol utilizes robust security mechanisms, such as fraud proofs and cryptographic verifiability, to ensure the integrity of transactions and the safety of user funds. This focus on security provides traders with greater confidence and peace of mind when engaging in transactions.
Furthermore, TraderJoeV2.1-Arbitrum offers a user-friendly interface and intuitive trading experience. Its user interface is designed to be accessible and easy to navigate, making it suitable for both experienced traders and newcomers to the blockchain space. This ease of use distinguishes it from its competitors and helps attract a wider user base.
Overall, TraderJoeV2.1-Arbitrum provides scalability, interoperability, enhanced security, and user-friendly features that set it apart from its direct competitors in the blockchain industry.
TraderJoeV2.1-Arbitrum is built on the Arbitrum blockchain, which is a layer 2 solution for Ethereum. It leverages the benefits of Arbitrum's scalability and low transaction fees to enhance the trading experience for users.
At its core, TraderJoeV2.1-Arbitrum is a decentralized exchange (DEX) platform that allows users to trade various tokens seamlessly. It uses smart contracts to enable trustless transactions without relying on centralized intermediaries.
The underlying technology behind TraderJoeV2.1-Arbitrum is based on Ethereum's Virtual Machine (EVM), which provides a secure and reliable environment for executing smart contracts. It utilizes the Optimistic Rollup technology offered by Arbitrum to scale Ethereum's capabilities.
The functioning of TraderJoeV2.1-Arbitrum involves a multi-step process. First, users deposit their tokens into liquidity pools on the platform. These liquidity pools serve as the source of liquidity for trading. Traders can then use these pools to exchange their tokens without the need for a centralized order book.
When a trade is initiated, smart contracts facilitate the transaction by executing the trade logic and updating the token balances accordingly. The outcome of the trade is determined by the predefined rules encoded in the smart contract.
Overall, TraderJoeV2.1-Arbitrum provides users with a decentralized and efficient trading experience by leveraging Arbitrum's scalability features and the security of the Ethereum blockchain. It enables seamless token swaps while minimizing transaction costs and congestion on the Ethereum mainnet.
DIA takes a comprehensive approach to sourcing trade data from various DeFi and NFT exchanges. The process differs depending on the type of exchange we are referring to.
For centralized exchanges like Coinbase, Kraken, and Binance, DIA utilizes scraping techniques to directly collect trade data from the exchange databases using Rest APIs or WebSocket APIs. These APIs allow DIA to access real-time trade information with varying collection frequencies ranging from 1 to 7 seconds, depending on the exchange. By retrieving the data as close to the source as possible, DIA ensures high precision and accuracy.
On the other hand, when it comes to decentralized exchanges, DIA collects data from various blockchains by subscribing to swap events in liquidity pools. This means that DIA retrieves trading data directly from the blockchain itself, ensuring enhanced data accuracy. Notable decentralized exchange sources include Uniswap, curve.finance, and PancakeSwap.
When it comes to NFT marketplaces, DIA captures live trading data by monitoring the smart contracts of integrated marketplaces. The retrieval period ranges from 20 seconds to 1 minute, ensuring comprehensive coverage of all NFT transactions happening in real-time. DIA's integration with NFT marketplaces such as Blur, X2Y2, OpenSea, and TofuNFT allows them to provide highly accurate and customizable price feeds.
By employing these strategies, DIA ensures that they have access to a vast amount of trade data, providing highly accurate and customizable price feeds for their users.
When building price feed oracles with TraderJoeV2.1-Arbitrum trade data, DIA follows a specific process depending on the type of exchange: DeFi or NFT.
For DeFi exchanges, the first step is data cleaning and outlier detection. This involves removing trades with prices that deviate significantly from the current market price. DIA applies an Interquartile Range (IR) filter to exclude data points outside an acceptable range relative to the interquartile range. Only trades falling into the "middle" quartiles move forward for further processing.
Next, DIA applies price determination methodologies to calculate the final price. One example is the Volume Weighted Average Price (VWAP), which considers the different volumes of trades. Another example is the Moving Average with Interquartile Range Filter (MAIR), where trades are ordered by timestamp and weighted against volume to determine the average price.
For NFT exchanges, the process differs. DIA determines the floor price of an NFT collection by processing the on-chain trade data in two steps. First, the data goes through cleansing filters to exclude market outliers and manipulation techniques. Then, a pricing methodology is applied.
The simplest methodology is the Floor Price, which provides the lowest sale price recorded on the blockchain during a given time window. However, this method can be manipulated by malicious actors. To address this, DIA offers advanced methodologies such as the Moving Average of Floor Price, which returns the moving average of a collection's floor price. DIA also applies an interquartile range outlier detection filter to filter out malicious behavior.
These methodologies are customizable, allowing DIA to provide price feed oracles that best meet the requirements of different applications.
It's important to note that DIA's computation process ensures resilience against irregularities and provides market-representative prices without being affected by market manipulation techniques.
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.