Trader Joe Partners with LayerZero to Enable Multichain JOE Token Transfers

The integration of LayerZero will enable Trader Joe’s JOE token to be seamlessly transferred from its native Avalanche blockchain to Arbitrum and BNB Chain, where the DEX recently expanded its presence.

Trader Joe, the leading decentralized exchange (DEX) on Avalanche, has announced a collaboration with cross-chain infrastructure platform LayerZero. This partnership aims to enhance the flexibility of the JOE token, particularly in enabling multichain interoperability.

The collaboration between Trader Joe and LayerZero is expected to mitigate or eliminate security risks associated with traditional cross-chain methods. LayerZero is designed to serve as an infrastructure platform that enables blockchains to interact while maintaining decentralization and security. Specifically, LayerZero facilitates the transfer of tokens by transmitting information between smart contracts on Chain A and Chain B, offering a more secure alternative to the traditional “wrapping” method, which involves creating an intermediary token for swapping between chains.

Understanding LayerZero – A Solution for Blockchain Interoperability

LayerZero’s first product, Stargate Finance, recently drew attention by announcing a complete reissue of its STG token to avoid repercussions from the FTX exchange hack in November 2022.

Trader Joe, with over $110 million in total value locked (TVL) at present, is a DEX that allows users to swap both tokens and NFTs on Avalanche. The platform also provides lending and borrowing services for user assets.

The LayerZero integration marks a significant step in Trader Joe’s effort to expand beyond the Avalanche blockchain. The platform began its expansion to Arbitrum in December 2022, followed by BNB Chain in January 2023.

Following the news of this partnership, the JOE token has surged by up to 13%.