Trader Joe is a decentralized cryptocurrency exchange based on the Avalanche blockchain. Launched initially as an ordinary DeFi platform, in time it added other services such as lending, leverage, staking, farming, etc. and turned into a one-stop platform that tries to solve such problems as capital efficiency and other topical tasks of the DeFi industry. At the time of writing, Trader Joe has managed to gain a very strong community that includes over 110K users.
Avalanche is known in the crypto community for such strong features as high speed and low transaction fees. These attributes defined the choice of the underlying platform for the team of Trader Joe and forged the principles highlighted as the core values of the facility. The team emphasizes fast and secure development, a community-focused, and an innovative approach that helps the service to stand out from the list of its competitors.
The platform offers numerous services under one roof. The list included swapping, staking, farming, lending, borrowing, and leverage and fully covers all the needs of the community. Thus, traders don’t have to leave the platform as they can perform all activities in one place.
Also, it is possible to co-market with Trader Joe as the members of the community can set up a partnership with Trader Joe. Those who are willing to participate should contact the team that promises to respond to the request within a week. Those who want to provide Farm incentives usually get a faster response as the team prioritizes such candidates over other obligations. This option should be specified in the Farm Application Form. All other requests are sent to the Cultivation Club which is the Community Governance program managed through the group on Discord.
The members of the community can also get a larger farm multiplier if the team agrees to provide this condition. Users should reach the support through social channels as well. The decision is taken on the basis of internal metrics such as volume, traction, etc.
The facility offers a detailed guide on how to buy and withdraw Joe to your Metamask from a different platform. Using ‘Joe’s Bridging guides’ offered on the website, the members of the platform learn to bridge to Avalanche from such platforms as BSC, Polygon, Heco, Fantom, xDai using ELK. Elk.Finance is an Avalanche project that has developed its own cross-chain solution.
Trader Joe has also developed its own lending protocol that is called Banker Joe. It is based on a Compound protocol. The roadmap of the facility is rather ambitious and promises to introduce new services on the platform in 2022 such as Options, Futures, IDO Launchpad, NFT marketplace, Limit Orders, and Joe Pro platform.
Trader Joe fees
There is a 0.3% fee for all participants who trade on the platform. The fee serves to partially support the liquidity pool of the particular trading pair. For instance, for the AVAX/JOE pair, the trading fee goes to the corresponding AVAX/JOE liquidity pool. Thus, whenever users trade some specific pairs, they also provide liquidity for the corresponding liquidity pool. Also, a fee of 0.25% is deducted from the initial 0.3% and is paid to liquidity providers. The amount they earn is proportional to the share they contribute to the pools.
The trading fees are accrued in real-time. It is possible to claim and withdraw the liquidity whenever you wish. It is important to remember that LPs’ activities are associated with some risks due to the possibility of impermanent loss exposure.
The platform enables the migration of Pangolin Liquidity to deposit it further on Trader Joe. The members of the community can earn extra yield in JOE tokens when they deposit Liquidity Pool tokens into a farm. The rewards are updated every few seconds. If you decide to unstake your tokens, you can harvest the rewards in JOE and then remove your share from the pool. The platform urges its users to stake JOE for xJOE to maximize their yield.
The facility has auto-compounders selling JOE rewards to help users improve their LP positions. Thus, participants get more tokens for corresponding trading pairs. Though users don’t get their rewards, they still get the opportunity to get even higher profit in case the native token of the platform increases in price. However, there is a different solution that saves users from impermanent loss. Users can stake JOE for xJOE to increase their profits when the price of JOE goes up. The main staking mechanism of the facility (xJOE) helps participants to earn more JOE.
Users have to pay 0.05% for swapping on Trader Joe. This fee goes to the xJOE pool and is spent on the periodic buyback of JOE tokens. At the time of writing, these buybacks take place every 2 days.
Some tokens can include a “reflect element”. This is a kind of transaction tax that is charged when these tokens are traded. Reflects vary from 5 to 20% as a rule, though sometimes they may be even higher than that. The slippage should be increased when these tokens are traded.
Trader Joe security
The AMM and yield farming has been audited by Paladin and HashEx with the last one flagging a few issues concerning the ability to allocate all emissions to the team. Also, the bug bounty program on Trader Joe offers users to find issues with potential rewards reaching 500,000 USD.
Trader Joe team
The team members prefer not to reveal their true identities and only display their nicknames on the web. Cryptofish used to work for the Avalanche project where he was a smart contract engineer and also a full stack developer just like 0xMurloc who additionally takes the position of a Product Manager. A graduate of a top US university with a specialty in electrical engineering, he also worked as a Head of a Product for a famous unicorn startup that later conducted an IPO. The name of the platform wasn’t specified.