What Is Trader Joe?
Trader Joe is a decentralized exchange (DEX) built on the Avalanche blockchain, offering a comprehensive suite of DeFi services.
Background
Forked from protocols like Uniswap and Compound, Trader Joe rapidly became the most utilized DEX on the Avalanche network. It combines various DeFi functionalities, aiming to serve as a one-stop-shop for decentralized trading, borrowing, lending, and more.
How It Works
Users on Trader Joe can swap tokens using an Automated Market Maker (AMM) model, provide liquidity to earn yields, engage in staking, borrow and lend tokens, and trade NFTs. The platform also features a governance token, JOE, which entitles holders to a share of the exchange’s revenues and allows them to participate in governance decisions.
Five Key Takeaways
- Trader Joe is a leading DEX on the Avalanche blockchain, offering diverse DeFi services.
- It was launched in June 2021 and features functionalities including token swapping, liquidity provision, staking, and NFT trading.
- JOE, the native token, not only facilitates governance but also provides holders with revenue shares.
- At its peak in late 2021, Trader Joe achieved a TVL of $2.5 billion, though it adjusted to $191 million by July 2022.
- The platform emphasizes a community-first approach and continuous innovation, with plans for expanded services like improved staking and leveraged trading.
