What is Trader Joe?
Trader Joe is a decentralized exchange (DEX) that operates on the Avalanche blockchain. Launched in 2021 by anonymous developers known as 0xMurloc and Cryptofish, the platform has quickly become a central hub in the DeFi ecosystem on Avalanche. Trader Joe offers a variety of financial services, including token swaps, yield farming, staking, lending, and an NFT marketplace.
Using an automated market maker (AMM) model, Trader Joe allows users to trade cryptocurrencies seamlessly. Users can provide liquidity to the platform by depositing their tokens into liquidity pools, earning rewards in the form of JOE tokens. These JOE tokens can be staked to earn additional benefits. The platform charges a 0.3% fee on trades, with 0.25% distributed to liquidity providers and 0.05% going to the JOE token farm.
Trader Joe's ecosystem includes several integrated components. The platform supports various DeFi activities such as yield farming, where users can deposit liquidity pool tokens to earn JOE tokens. Additionally, the staking mechanism allows users to convert JOE into xJOE, which accumulates a share of the trading fees generated by the platform. The lending protocol, known as Banker Joe, is based on the Compound protocol and allows users to lend and borrow assets.