Trader Joe is an Avalanche blockchain-based decentralized exchange. Avalanche is an Ethereum rival with exceptionally low transaction fees that allow for large throughput while maintaining decentralization.
This DEX offers lending and borrowing services, liquidity pools, leveraged trading, yield farming, non-fungible tokens (NFTs), staking, and a launchpad. Overall, Trader Joe has established itself as one of the most comprehensive DEXs in the decentralized finance (DeFi) industry.
The DEX was established in 2021 by Cryptofish and OxMurloc. The platform’s major goal is to make AVAX trading more convenient. Many of the Avalanche initiatives are patterned after well-known crypto projects. Pangolin and Zero Exchange, for example, mimic Uniswap’s approach. JOE, Trader Joe native token, has also been introduced. Users receive JOE for contributing to liquidity pools.
At the time of writing, JOE 24-hour trading volume stands at $1,751,173, going for $0.164378. The JOE token has gained 1.27% in the last 24 hours, ranked position 320 in the CoinMarketCap ranking. (Source; CoinMarketCap).
Table of Contents
How does Trader Joe work?
Trader Joe has numerous services:
1. Trading
Pools offered by financial intermediaries serve as the source of liquidity for transactions on this platform. They are capable of farming, Joe. Each trade is subject to a 0.3% fee. This is split between 0.05% going to the JOE token farm and 0.25% going to liquidity providers.
2. Staking
Staking on the marketplace entails utilizing your JOE to generate xJOE, the fundamental advantage of the exchange. As previously stated, the xJOE pool receives 0.05% of all trades. This suggests that by holding JOE, each user may earn a greater number of xJoe. Finally, when a user trades their xJOE back into JOE, they will have more than they had at the start.
3. Liquidity pools
As previously stated, liquidity pools get 0.25% of all trades—the liquidity pools aid in the seamless exchange of two coins. Users are encouraged to contribute to these pools with their LP tokens. These advantages are granted to liquidity suppliers. It indicates their portion of the total pool.
4. Yield farming
The yield farming procedure at Trader Joe is quite conventional. To obtain JOE token incentives, you must first contribute liquidity pool tokens.
5. Protocol for DeFi Lending
Based on the Compound Protocol, Banker Joe supports the loan process at Trader Joe. Tokens may be removed anytime, provided the existing obligation has been properly paid. Consumers can extend their borrowing limit by adding additional money to the collateral value.
6. NFTs
The Joepegs Marketplace supports Trader Joe’s NFTs. It is presently one of the largest NFT markets in the Avalanche ecosystem. JoePegs has various useful tools for display, safelists, and auction settings. There are also sophisticated NFT filters and a support website dedicated to artists that give real-time information.
How to use Trader Joe’s
One of the initial stages is obtaining a wallet compatible with Avalanche’s C-Chain. Many Trader Joe’s customers prefer the Coin98 mobile wallet. Then you must link your wallet to your Trader Joe account.
It is quite simple to utilize Trader Joe after that is done. There is a lot to the website, and it might be challenging to describe everything so we won’t do so here. Trader Joe’s creators, on the other hand, have worked hard to provide a thorough tutorial regarding their website, which includes step-by-step instructions and videos.
If you already have a basic understanding of cryptocurrencies, this page will help you comprehend why you should utilize their platform and how each step works.
Their guidelines include utilizing Metamask, the platform, CEX routes, and being secure when shopping at Trader Joe.
How is Trader Joe unique?
Trader Joe has various elements that set it apart from the competition. One of the first is that it has a very low probability of competition due to the limited number of AMMs allowed on Avalanche.
Trader Joe also attempts to make DeFi, cryptocurrencies, and their platform as user-friendly as possible. Trader Joe provides a thorough tutorial as well as videos so that anybody can use their program, unlike many cryptocurrency platforms that are complicated and can take years to understand. This is a refreshing contrast from other software that appears to be restricted to individuals who understand cryptocurrencies and DeFi markets well.
The cryptocurrencies available for purchase at Trader Joe stand out as well. They accept trades between the following currencies: AVAX, ELK, YAK, PMG, RELAY, JOE, IME, FTOMB, and XAVA. USDC, USDC.e, USDT, USDT.e, UST, DAI.e, and MAI are all available stablecoins. And there are so many more.
Therefore, Trader Joe is a one-stop shop where you can manage practically any farming imaginable in a single, decentralized location. Instead of managing multiple blockchains and platforms, you can manage everything in one place.
Advantages of using Trader Joe
1. One-Stop-Shop
Trader Joe is a site where users may borrow, trade, lend, stake, launch, farm, or pool all in one simple and handy location. This makes it simple for consumers to transfer funds as needed.
2. Easy to use
Because of its basic platform, Trader Joe is straightforward to utilize. Most trades and transfers can be completed in just a few clicks, and tools like ZAP may also be quick and inexpensive.
It is also simple to work on many ways to transport money simultaneously. Because of the simple homepage, all their features are easy to grasp and navigate. For example, you may lend your tokens by clicking the “lend” button, then rapidly switch to farming by hitting the “farm” button.
3. Security
Trader Joe strives to be as secure as any coin or platform. HashEx and Paladin thoroughly audit them, and they attempt to be as open about any dangers associated with utilizing their platform as possible.
HashEx and Paladin have extensively audited them, and they are completely transparent about their hazards. Their first focus is safety, and they demonstrate that they mean what they say.
Disadvantages of using Trader Joe’s
1. New
All cryptocurrencies, DeFi, and blockchains are relatively new, having been around for about three years. Trader Joe is a relatively new platform and uses cryptocurrency. The platform launched in June 2021, with JOE tokens becoming available at the end of August 2021.
2. Beginners will need help using.
To get onto Trader Joe, you must purchase other cryptocurrencies and exchange them for JOE tokens. This can make it difficult and confusing for beginners to use.
Also, while the Trader Joe platform is simple to use, there needs to be some clarification about how the trading system works. If you look at their Reddit page, you’ll notice that there are a lot of questions about why certain trades didn’t work and where people’s money went after they tried to trade. Despite its efforts to make its platform simple, with many trades taking place in just a click or two, it is difficult to understand exactly how the process works or where the tokens are located.
3. Risky
Some risks are associated with any DEX services. Though Trader Joe strives for maximum security, some drawbacks are unavoidable when utilizing any cryptocurrency.
Final Thoughts
Trader Joe, albeit novel, has great ambitions for people in the DeFi community. This platform provides affordable and secure ways to transfer money and pooling, launch, lend, borrow, farm, and stake all on one platform. All of which are easily accessible with a few clicks of the mouse.
