Trader Joe’s: The Ultimate Guide to the Top DEX on Avalanche

Trader Joe’s is a decentralized crypto exchange that includes the Avalanche network and ecosystem. The platform offers a variety of DeFi services, including dividend farming, staking and trading.

In this article, we will show you how Trader Joe’s works and whether this DEX can help you with your crypto ventures.

What is Trader Joe’s?

Trader Joe’s explainer video

Trader Joe’s is an AMM (Automated market makers) that focuses on trading Avalanche (AVAX). However, this DEX (Decentralized Exchange) also offers services related to lending and borrowing, liquidity pools, leveraged trading, dividend breeding, NFTs, staking, as well as a startup space. Overall, Trader Joe’s one of the most comprehensive DEXs in the DeFi space.

DEX was founded in 2021 by developers whose identities remain anonymous to this day Have become. The primary goal of the platform is to make trading AVAX easier. Many of the Avalanche projects are modeled after other famous projects in the crypto space. For example, Pangolin and Zero Exchange copy Uniswap’s model.

Trader Joe’s has also launched its own token, JOE. Users are rewarded with JOE for contributing to liquidity pools.

How does Trader Joe’s work?

Similar to the trading platforms dYdX or Sovryn, Trader Joe’s offers a wide range of services. Let’s see how each of these services works.

Act

Trader Joe’s focus is on trading pairs. The platform has a beginner-friendly user interface. Trading liquidity is obtained from pools provided by liquidity providers. These providers can cultivate JOE. This is a financial incentive for them.

A 0.3% fee is charged on all trades. Of this, 0.25% goes to the liquidity providers and 0.05% to the JOE token farm.

Liquidity pools

As already mentioned, the liquidity pools receive 0.25% of all transactions. The liquidity pools contribute to seamless trading between two cryptocurrencies. The financial motivation for users to contribute to these pools is LP tokens. These act as rewards for liquidity providers. They represent their share of the entire pool.

“Permanent Loss” means the risk to which Providers are exposed. It is the difference between the value of the payout and the value of the deposit. Losses are “volatile” until the price returns to the original value.

Yield farming

Trader Joe’s yield growing process is pretty standard. It involves depositing liquidity pool tokens to earn rewards in the form of JOE tokens. Users must visit the Trader Joe’s agriculture page and select the pool they want to contribute to.

strike

When you bet on the Joe platform, you earn with your JOE, xJOE. The latter are the main rewards for betting on Joe’s crypto exchange. As we mentioned earlier, 0.05% of each trade goes into the xJOE pool. Ideally, this means that each user can earn a higher amount of xJOE by holding JOE. When a user finally trades xJOE back to JOE, they end up with a larger amount than they started with.

DeFi lending protocol

Banker Joe supports the Trader Joe’s loan protocol. This is based on the composite protocol. Tokens can be withdrawn at any time provided the outstanding debt is paid in full. The value of the security determines the loan-to-value limit, and users can increase it by adding more funds.

Trader Joe NFTs

Joepegs Marketplace is designed to support Trader Joe NFTs. It is currently one of the largest NFT marketplaces in the Avalanche ecosystem.

Joepegs offers several interesting features for auctions, whitelisting and presentations. There is also an artist-focused support page that provides real-time information as well as extensive NFT filters. Trader Joe’s is also introducing its own official NFT collection titled CLUB JOEPEGS.

What makes Trader Joe’s so unique?

A futuristic yet classic touch – An image by BeInCrypto.

Trader Joe’s is similar in many ways to other decentralized crypto exchanges available in the DeFi space. It includes functions related to trading, liquidity pools, dividend breeding, investment and lending as well as management. Still, the platform’s anonymous developers have integrated a few unique features.

One of the unique features developed on the platform is Rocket Joe. This is the launch pad for DeFi protocols. It allows crypto-developers to develop their own tokens and bootstrap their “protocol-owned liquidity” – ie. use it as a jump-start.

Trader Joe’s Benefits

Trader Joe’s competes with a number of similar services launched in the DeFi space. Trader Joe’s plans to assert itself through several financial incentives among users. In addition, the platform is very beginner-friendly, secure and of course decentralized.

Trader Joe’s uses the highly competitive Avalanche network. As such, the platform benefits from a strong community backed by a knowledgeable and responsive technical support team.

How to shop at Trader Joe’s?

Trader Joe’s works similarly to other AMM-based crypto exchanges, such as Uniswap or Quickswap. Users simply navigate to the “Trade” tab and select the desired tokens they wish to exchange. You also need to connect your crypto wallet (e.g. MetaMask).

Before proceeding to trade, users see the minimum amount they will receive, the impact on the prices of the liquidity pool and the liquidity provider’s fee. As soon as users confirm the transaction, they receive the assets at the respective contract address.

What is Trader Joe’s (JOE) Token?

Trader Joe's Cover Design by BeInCrypto.
Visualization of the JOE token – An image from BeInCrypto.

Shortly after its release in 2021, Trader Joe’s introduced its own token JOE.

tokenomics

JOE runs on the Avalanche blockchain. He has a stash of 500 million tokens.

distribution

Half of the JOE tokens will go to liquidity providers, and the rest will be divided between the treasury (20%), the development team (20%) and future investors in the project (10%).

Use case

Whoever contributes to Trader Joe’s (stakeholder, farmer, liquidity provider) gets the token. The control process via JOEVOTE also uses the token.

price and future

JOE is currently trading at around $0.33. Analysts believe it could reach $0.9 in 2023. Even more optimistic analysts say the token could reach above $3.3 within five years.

What is rJOE?

The rJOE token is used to participate in Rocket Joe Launches. It must support new projects and protocols in the Avalanche network. Crypto users can collect rJOE by depositing JOE into staking pools. The token is not available on other platforms and has no intrinsic value. Its use is exclusive to the Rocket Joe project.

How to buy JOE cryptocurrency?

Online shopping cover collage.
Online Shopping Illustrated – An image by BeInCrypto.

If you want to buy JOE directly, you can find it on a number of reputable crypto exchanges, especially Binance. But JOE can also be found on FTX and Gate.io.

What does the future hold for Trader Joe’s?

Trader Joe’s is tapping into the growing public desire for a simple decentralized financial system. The AMM-based protocol includes a large number of financial services. In fact, the company may gain even more users over time to be part of the Avalanche ecosystem and the rewards it provides. But only time will tell how well Trader Joe’s will actually do in the DeFi space.

To learn more about Trader Joe’s and the Avalanche ecosystem, visit BeInCrypto Telegram Group. Group members will be happy to update you on Avalanche and AVAX.

Frequently asked questions

How do I use Trader Joe’s on Avax?

Trader Joe’s runs on the Avalanche network. Users need some AVAX coins to pay gas fees (transaction costs) and buy other tokens on the blockchain. Otherwise, Trader Joe’s operates like other AMM-based crypto exchanges in the DeFi space.

How do I get JOE?

JOE Tokens are earned by contributing to the Trader Joe’s Platform (eg through Staking). JOE can also be bought on crypto exchanges like Binance.

How is yield breeding with Joe Avax?

They earn JOE when they contribute to a pool based on the APR of the protocol.

What is the rJoe Token?

The rJOE token will be used as part of the Rocket Pool program that Trader Joe’s wants to use to support new tokens being added to the Avalanche network.

How to Buy Cryptocurrencies at Trader Joe’s?

Crypto transactions at Trader Joe’s are similar to Uniswap. Users need to visit the “Trade” tab, select the transaction details (check the transaction fees) and then they can receive their crypto assets from the existing pools.

What is Trader Joe’s Crypto?

Joe is Trader Joe’s own token. It is used as an incentive for users and as part of the governance process of VOTEJOE.

Where can I bet JOE Coins?

JOE can be bet directly on the Trader Joe platform. Users then receive the rJOE token, which in turn can be exchanged for JOE.

Disclaimer

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