Banker Joe

This marks the dawn of a new era for Trader Joe as we continue to build on the promise of providing a one-stop-shop DeFi trading platform. Banker Joe will be the first platform to offer a fully-fledged, in-house DEX and Lending protocol on the Avalanche ecosystem, unlocking the next step in achieving our vision of pushing the frontiers of DeFi innovation.

Co-founder - 0xMurloc: “Banker Joe is an essential step towards our vision of turning Trader Joe into a one-stop-shop DeFi trading platform”

By combining Trader Joe’s friendly UI with the multi-functionality of the platform’s dual protocols, investors can expect a seamless user experience. With Banker Joe, users will now be able to lend and borrow assets expanding the range of investment strategies to include single asset yield, leveraged longs, leveraged farming, and open short positions.

1. Instead of holding tokens in your wallet, you can lend your tokens to Banker Joe to earn yield with no exposure to IL.
2. Using your current tokens as collateral, you can take on leverage in your portfolio by borrowing another token.
3. Borrow and sell tokens you expect to decline in value, creating an open short relative to the token you hold in its place.

Co-founder - Cryptofish: “Banker Joe gives you added flexibility for your DeFi investment strategies”

Look no further, Co-founder Cryptofish expands on the uses of Lending and why diversification on your DeFi strategies is an important consideration for any budding DeFi pioneer.

To engage with Banker Joe’s services, users will navigate to the Lending page on the website and deposit one of the whitelisted tokens. In return, we’ll provide them with a receipt, e.g. user deposits AVAX and they receive jAVAX in return. The interest accrued will be increasing over time (this works in the same way as xJOE). When the user returns the jAVAXreceipt to Banker Joe, they will receive their original AVAX + the additional earned AVAX on top.

As well as supplying an asset, users can also borrow against that asset which is used as collateral. For example, a borrower can supply ETH to the jETH contract and then borrow AVAX from the jAVAX contract. The amount of AVAX the borrower can borrow is defined by the collateral factor of ETH. If for example, the borrower has supplied 1 ETH as collateral and the collateral factor of ETH is 65%, then he can borrow up 0.65 ETH worth of AVAX.

The protocol would have safety measures to restrict users from taking actions (borrowing more tokens or withdrawing collateral) that may exceed their borrowing limit.

Borrowers can repay tokens to Banker Joe up to the borrowed balance. If partial repayment is made, the borrow balance may be non-zero, and continue to accrue interest. Repayment is a transfer of tokens from the borrower back to the token market.

It is important to point out that the above use-cases for Banker Joe do not come risk-free. Borrowers of tokens risk liquidation if they are unable to keep a leveraged trade open, which in turn places lenders at risk of being unable to withdraw their deposit. In the event of a shortfall, which is when a borrowing balance exceeds that of the borrowing limit, a portion of the borrower’s collateral will be liquidated to return the account to good standing. If your account is in a shortfall position, a liquidator can liquidate it to return your position to a balanced position; liquidation comes with a discount to help incentivize proper risk management for users of the protocol.

The integration of a reliable price feed is another key element in establishing the fidelity and integrity of Trader Joe’s data and security. Banker Joe will utilise the existing, market-leading Oracle on the platform to ensure that all data is accurate, helping with the management of lending pool positions. The official announcement for this market-leading Oracle will follow soon.

Banker Joe will be double audited prior to launch, by Paladin and Hashex. We are also engaging with more auditors to double down on our stance of ensuring the highest standards of security, for the protocol and the Avalanche community.

On launch, whitelisted assets (WETH, USDT, DAI, AVAX, LINK, WBTC, USDC) will be available. However, we’ll be adding more tokens in the near term (yes this means xJOE at some point) and this list will also grow to potentially include Liquidity Pool tokens.