The Avalanche blockchain is a popular blockchain and will be in the top 10 of crypto coins in January 2022. With fast and cheap transactions and great scalability, Those are exactly the problems that Ethereum has to solved with, and Avalanche is also one of the many Ethereum killers. Avalanche has an extensive ecosystem, with oracles, DAOs, gaming NFTs, wallets, dApps and DeFi. The latter, the DeFi, also houses a new DEX since June 29, 2021, which has quickly become popular and that is Trader Joe.
You probably already figured it out, in this blog I’m going to talk about Trader Joe and the JOE token. I’m going to explain to you exactly what Trader Joe is and how it works. I’m also going to take a behind-the-scenes look at the team on this project and take a closer look at the JOE rate. Furthermore, I will also tell you where to buy the JOE token.
Please note: please note that the text below about ‘Trader Joe (JOE)’ as well as the explanation thereof should in no way be construed as advice. The choice for whether and in what way you want to trade (crypto) and which choices you make in terms of investment is up to you and you alone. We are not financial advisors.
Here you can first watch a video showing how to stake and farm at Trader Joe.
- 1 What is Trader Joe?
- 2 How does Trader Joe work?
- 3 Who is on the team behind Trader Joe?
- 4 What is the JOE token?
- 5 What is the price of the JOE token?
- 6 Where can you buy the JOE token?
- 7 What is the best way to store the JOE token?
- 8 Conclusion
What is Trader Joe?
Trader Joe sees himself as a one-stop DEX on the Avalanche network. They combine several DEX services with DeFi , such as lending/lending and leveraged trading. Trading, liquidity pools, farming and staking are also possible.
This DEX was not launched until June 2021. In November 2021, the Total Value Locked (TVL) will reach a whopping $2.6 billion, by January 2022 that amount will be halved. The platform has quickly gained popularity and there are several large and well-known investors in this project. Coin98 Ventures, Avalanche Foundation, Three Arrows Capital and Not3Lau Capital are a few examples of this.
It is an AMM (Automated Market Maker ), based on DEXs built on Avalanche. Most of these DEXs are built after examples of the Ethereum blockchain and BSC. For example, think of Pangolin and Zero Exchange which are built on Avalanche, which in turn are based on Uniswap. Or think of Olive and Lydia Finance which are based on PancakeSwap.
Trader Joe also has several values that they want to hold onto and offer. For example, the community comes first for them. They also want to be innovative, fast and safe and offer DeFi to everyone.
It’s kind of funny how they always have their ‘Trader Joe’ figure as a good-natured farmer in their pictures. He is also placed as a central figure in the community.
Their vision is to serve their Avalanche community with innovations in the DeFi world, and to build fast but most importantly safely. They want to offer all their DeFi services under one roof, for the convenience of the user. It seems to work, as their popularity is growing fast. They are in the top 10 in the TVL ranking.
How does Trader Joe work?
How Trader Joe works was already explained in the video at the beginning of this blog, but I’m going to explain this again. Not everyone feels like watching a video or may not understand English well.
Connecting MetaMask to Avalanche
As a first step, a wallet must be connected to connect the Avalanche blockchain to the Trader Joe platform. The easiest way to do this is with a MetaMask wallet. This can easily be set up on the Chrome, Brave or Firefox browsers. When setting up MetaMask for the first time, it is important to write down the password and seed phrase well and keep it safe in several places. This information should also never be shared with anyone else. Whoever has access to this information also has access to your cryptocurrencies.
- Log in to MetaMask.
- In the top right corner of the page, select the appropriate network from the drop-down menu.
- Choose ‘Add Network’.
- Now fill in all Avalanche information as shown below and when you are done click on ‘Save’.
– Network Name: Avalanche Network
– New RPC URL: https://api.avax.network/ext/bc/C/rpc
– Chain ID: 43114
– Symbol: AVAX
– Explorer: https://snowtrace.io/
Now you can add all tokens that run on Avalanche, but you have to import the token information first.
- Click on ‘Import Token’ at the bottom of the Avalanche page on MetaMask.
- Enter the information of the relevant token. You can find this info on CoinGecko or CoinMarketCap.
- The token info is normally entered in your MetaMask per the auto-fill option.
- Click on ‘Add Custom Token’ and click on ‘save’.
There are gas costs that have to be paid in AVAX. With 0.1 AVAX you come a long way because the gas costs are very low.
Now you can confirm the connection between Trader Joe and the Avalanche network. You can now start trading, staking, farming, lending/lending and pooling. Trader Joe is also one of the first DEXs to introduce a price cap.
Bridges to other blockchains
Several bridges are in place to transfer AVAX to other blockchains. There are bridges between Joe and Ethereum via the Avalanche Bridge or to Fantom via the Fantom Opera chain. There are also bridges between BSC, Polygon, Heco, Fantom and xDai via the ElkNet Bridge. This is a native cross-chain launched on Avalanche that connects ‘Any chain, anytime, anywhere.™’.
This video gives a good explanation of how to transfer tokens on Ethereum to Avalanche.
Trading on Trader Joe
On the Trader Joe exchange, you can exchange tokens, which is also known as ‘swapping’. It’s done on a very simple interface, you pick the two tokens you want to swap and that’s it!
The liquidity of this exchange is provided by the LPs, or the Liquidity Providers of the liquidity pools. These LPs put their tokens into a pool and in return they get LP tokens. You can then strike these again to earn JOE tokens in the farm. I will come back to this.
With each swap, there is a 0.3% transaction fee. These are divided as follows.
0.25% is paid to the liquidity pools in the form of trading fees for the LPs.
0.05% will be sent to the JOE token farm.
It is possible that some tokens have a ‘reflect’ element and this increases the slippage. This reflects element is a token property and has nothing to do with the exchange. To be able to trade with these tokens now, you will have to set the slippage higher.
I just explained that for every trade on Trade Joe, there is a 0.3% fee, 0.25% of which goes to the liquidity pool. Each pair that is traded will receive this cost as a reward in their pool. So the cost of an AVAX : JOE transaction goes to the AVAX:JOE pool. These liquidity pools are pools of two different tokens, which makes swapping possible. The SMP then does this fully automatically. If you invest in such a liquidity pool, for example in the AVAX:JOE pool, you will receive LP tokens in exchange. This LP token or these LP tokens indicate the value of your investment.
If you now add liquidity to such a pool, you will receive a reward proportional to your investment, which comes from the 0.25% transaction costs. You get this reward when you take the liquidity out of the pool. You always run the risk of permanent loss. This is the risk that, for example, you put a certain amount of a token into the pool, but by the time you take the token out of the pool, the value of the token has dropped. So you get back less than you put in. If you had not put the tokens in a liquidity pool, but kept them in your wallet, it is possible that your tokens would have been worth more.
You can put your liquidity tokens in a yield farm to get extra yield or income (interest). You will then receive this yield in the form of JOE tokens.
If you do this, you actually earn double, because you already receive extra income from the liquidity pool.
How does yield farming on Trader Joe work?
- Connect a wallet.
- Go to the Polish page.
- Click on the Pool you want to join, for example the AVAX:JOE pool.
- Now go to the Farm page and click on the same Farm, so AVAX:JOE.
- If you did everything right, you should now view the ‘Manage Farm’ page.
- Check the details of the Farm, such as Liquidity, Pool Weight and APR.
- On the right side of the page, you can enter number of LP tokens you want to deposit, and then do so.
- Confirm the transaction on your wallet.
- Now you are in the Farm and earn JOE Tokens.
The JOE rewards are updated every few seconds. To collect the reward, select the ‘Harvest’ button. If you want to quit the Farm, you can click the ‘Unstake’ button on the right side. Then you go to the corresponding pool on the Pool page. You can now remove the number of tokens that are ‘unstaked’ from the pool and you have the original tokens back in your possession. So there is no waiting time, you can start and stop farming as you see fit.
This video shows how farming works.
If you stake JOE for xJOE, you have the chance to get more profit than by using an auto-compounder. This is when your yield farming rewards are automatically sold immediately and the yield is added back to the pool, to get a higher APY. This can yield nice interest or yield percentages, but you will miss out on any profits if the JOE token increases in value.
With staking you don’t have that problem, you benefit even if the value of the JOE token increases, because you now get more interest. In addition, there is no risk of permanent loss when discontinuing.
The staking mechanism on Trader Joe is the xJOE token. When you strike JOE, you exchange it for xJOE. Now you always earn more JOE because you strike xJOE.
Of the trading costs, 0.05% is always put into the staking pot in order to pay out the staking rewards. So you always get more JOE when you stop staking than when you start staking.
You can now also farm xJOE, then you get the staking yield in addition to the farm yield.
How does strike work?
How to stake at Trader Joe:
- Connect a wallet.
- On the dashboard click on ‘Stake’
- On the left side of the page, now enter the number of JOE tokens you want to stake and confirm.
- You will now receive xJOE tokens in your wallet.
- You will now see a panel where you can see ‘xJOE Balance’ which is the amount you are staking and ‘Staked JOE’. Staked Joe is the number of staked JOE tokens and your share of the reward or interest. Under ‘Staked JOE’ is a box showing how that is calculated.
- There is a ‘View Stats’ button where you can see the analysis of your staking credit.
- If you place xJOE in the Farm, you will no longer see the JOE you are staking on the staking page.
If you want to stop your staking, simply click on the ‘Unstake’ button, enter how much you want to unstake and confirm. You now have the original number of JOE tokens you started with plus the reward or interest from the transaction fees.
This video shows the staking works on Trader Joe.
Banker Joe, Trader Joe’s loan protocol
Banker Joe is Trader Joe’s loan protocol and is based on the Compound protocol. This loan protocol can be combined with the Trader Joe DEX and you can use non-custodial leverage.
Lending at Trader Joe
You can invest crypto that other users can then borrow. In return, you will receive interest on your tokens. You can do this in the following way.
- Go to the ‘ Lend ‘ page.
- On the left side of this page, you can find various lending markets with information about liquidity and the deposit APY.
- Choose a token you want to lend and click on it, and you will then see a page with even more detailed information.
- Enter the number of tokens you want to lend and confirm.
- Click on ‘deposit’ to add the tokens to the market.
You can withdraw the tokens at any time if you do not have any outstanding debts on the platform because you have borrowed something yourself. Go back to the ‘Lend’ page and click on the token you want to include. On the token page click on ‘Redeem’ and enter how many tokens you want to extract and confirm this.
On the ‘My Portfolio’ page you can keep track of your activities when borrowing and lending. Here you also see an increasing sum of your earnings with the total interest that you have received. This interest is automatically added to your account, so if you withdraw the tokens, you will receive more than you invested.
As a kind of receipt as proof of the tokens you have put in to lend, you get jTokens. So if you lend AVAX it’s jAVAX or with JOE it’s jJOE, and so on. With these jTokens you get your original tokens back.
The tokens you have deposited can also be used as a deposit, and under ‘Account Assets’ on the My Portfolio page, you can see how much they are worth as a deposit. The collateral value is how much you can borrow now. On the right side of the page is a button that you can click and your deposited tokens will now become ‘collateral’ or deposit.
Borrowing money from Trader Joe is of course also possible. That works almost like borrowing money from a bank, but slightly different.
- Go to the Lending Markets page.
- On the right, you will see a list of tokens that you can borrow with information about liquidity and APY.
- Choose a token you want to borrow and click on it, and you will be presented with a page with even more detailed information.
- Enter the number of tokens you want to borrow and confirm.
You also have to pay back the tokens you borrow. You have first paid a deposit, as described earlier. Now on the ‘Lending’ page, you can click on the token you want to repay. Enter how much you want to repay and click on ‘Confirm’.
The following video gives a good explanation of how to borrow and lend money on Trader Joe.
What is Zap?
Zap is the newest part of the Trader Joe AMM. To farm on Trader Joe, you need to make three trades, each costing gas and it also takes time. The two tokens you need to swap and add liquidity before you get the LP tokens. With Zap you can solve this and these three trades are reduced to one trade. So it is cheaper and faster.
Click on Zap and then choose the token from the drop-down menu and the LP token. Enter how much you want to ‘zap’ and confirm this and you’re done. You have now saved time and money.
This video gives a good explanation of this Zap function.
Who is on the team behind Trader Joe?
The team behind Trader Joe comes from all corners of the world, they say. However, they are anonymous but do reveal their identity to investors if necessary. This seems safe enough as they do have a few well-known investors, who don’t just give money to a bunch of unknown individuals. In addition, some team members have Twitter accounts with many followers. They don’t use LinkedIn, because that is a little less anonymous.
- Cryptofish — Co-founder with over 33,000 Twitter followers. He is a full-stack and smart contract engineer. He has a master’s degree in computer science from a well-known American university.
- 0xMurloc — Co-founder with over 6,000 Twitter followers. He is also a full-stack developer and specialized in product marketing. Worked as a Senior Product Lead at Grab.
- Blue — Marketing Lead. Has 10 years of experience in the traditional financial world in an Asset Management Firm based in London.
A strategic sale of $5 million was raised. Investors include DefianceCapital, Avalanche, Coin98 Ventures, Not3Lau Capital and Three Arrows Capital.
What is the JOE token?
The JOE token is an ARC20 token because it runs on the Avalanche blockchain. It is a utility token and is also used to manage Trader Joe.
In total there will be 500 million JOE tokens with 161,685,999.00 JOE already in circulation or 32% at the end of January 2022. The market cap is quite low at $190,110,566. There was no private sale or presale of this token, but all JOE tokens will be released on the market according to an established release plan.
The team gets 20%, which is a good percentage, there’s no immediate danger of them going off with a back pull. In addition, the release of the tokens will last until January 2024.
Below you can see the distribution of the JOE token.
The following image shows the release of the JOE token.
What is the price of the JOE token?
If you want to invest in the JOE token, a good start is to know its price. If you are already going to trade, you also want to make a profit. You can make a technical analysis to see what the best buy or sell moment is.
The JOE token was listed on CoinMarketCap on August 27, 2021 with a price of $1.9078 and on August 30, the token was trading at $2.06. It then plunged hard to return to $4.03 at the end of September. Here again a correction was made. Its preliminary ATH was reached on November 21, 2021, with a price of $4,8873. After that, the price also fell again and at the time of writing, at the end of January 2022, the price is $1.19.
At CoinMarketCap, it is well outside the top 200 in place 252. This coin has a good prospect in my opinion, because it has a lot of TVL, although that is not the best indicator. Furthermore, it is a good SMP that quickly found its place and also has good investors. I think he could have a good price development. If you want to invest in this coin, it is important to do your own research, especially because I do not give financial advice, because I am not a financial advisor.
Where can you buy the JOE token?
The JOE token is not yet available on Bitvavo, but it is for sale at Binance. Several leading CEXs also offer this coin, such as FTX , Gate.io and KuCoin. Almost all tokens can be found on Gate.io and new tokens are added every week. A very good alternative to Bitvavo if a token is not offered there. There are also several liquidity pools on DEXs such as Trader Joe or Pangolin where you can find a JOE pair.
What is the best way to store the JOE token?
You have several options to save this token. The safest way is to store them on a hard wallet, also known as a cold wallet. With a hard wallet, such as the Ledger X or S and the Trezor, you are protected against internet hacks.
You can of course leave your JOE token on the CEX where you bought the token. However, now you do not have access to your private keys. The private keys of exchange remain in the hands of the exchange itself. There is always the danger of a hacked exchange and then you have a chance that you will lose your crypto. These wallets on an exchange are also called hot wallets.
As a third option, you can also use an online wallet such as MetaMask, Trust, or HyperPay wallet. This is a good solution, especially if you trade directly at Trader Joe. Here is also another chance of an internet hack, but it is theoretically smaller than a hack on a stock exchange.
Trader Joe is currently the most popular AMM DEX on the Avalanche blockchain. AMMs play an important role in DeFi. In addition, Trader Joe is community-managed via the JOE token and has an easy-to-use UI.
The rewards on Trader Joe are good and that is because there are many users. The more users there are, the more trades are made and the more transaction costs flow to the users. Trader Joe is therefore an excellent platform to set up a passive income with, for example, staking. You convert your JOE tokens into xJOE tokens. You can then farm these xJOE tokens and you receive interest on both the staking and the farming.
Considering how quickly Trader Joe has become popular and is already the best running DEX on Avalanche, I do see a bright future for this platform. DeFi is still on the rise and also getting more famous every year and more people are going to use it. This all plays into the hands of protocols like Trader Joe. If this indeed plays out, then the value of the JOE token will also increase. However, do your own research on this token first if you want to invest in it as I am not a financial advisor.
If you have any questions about Trader Joe, let us know on our Crypto Buying Facebook group. You can also follow us on Twitter. See you there!
Thanh Lanh Tran(1989) is Chief Editor from BitcoinUSD.com