Trader Joe

Market Making

Trader Joe is a decentralized exchange native to Avalanche that allows anyone to trade, provide liquidity and yield farm.

Risk Rating
Average
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
First mover advantage as a beginner-friendly, decentralized exchange (DEX) with a solid community and low gas fees on the Avalanche chain.
What we like less
Trader Joe has not yet fully differentiated itself from competitor DEXs and has seen its native JOE token suffer from the typical farm and dump strategies seen throughout DeFi.
What it means for you
Trader Joe is an attractive marketplace for you to earn yield due to its high total value locked (TVL) and significant volume. JOE tokenomics have also been revamped to provide more utility to long-term holders.
Information
Exploit/Hacks
None
Info
  • Website
  • Token: JOE
  • Tags: Market Making
Key Metrics
  • TVL: $69.7M (Rank #79)
  • TVL Ranking by Market Making: #0
  • Blockchain: Avalanche, Binance
  • Chain TVL
    • Avalanche: $69.71M
    • Binance: $31.29K
Risk Assessment
Average
Protocol Code Quality
  • Code reviewed by several experienced auditors including HashEx and Paladin
  • Anonymous team reduces transparency
  • No documented protocol hacks since launch
Protocol Maturity
  • Core protocol launched in 2021; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 5% by total value locked reduces risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of less than 4 signers, which makes the protocol more susceptible to centralization risks
  • No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
  • Low voting power concentration reduces risk
Protocol Design
  • No death spiral concerns
  • This protocol is susceptible to risks related to decentralized exchanges (DEXs), such as impermanent loss
  • TraderJoe is a Uniswap fork implemented on the Avalanche chain
Things to know about Trader Joe

How Trader Joe (DEX) works

TraderJoe is an automated market maker (AMM) like Uniswap that launched in July 2021 on the Avalanche chain. AMMs rely on liquidity pools rather than traditional order books to execute decentralized trades. The liquidity pools are funded by users who deposit two tokens in equal proportion in exchange for a liquidity provider (LP) token that represents their claims to their share of the total pool, plus a portion of trading fees. On TraderJoe, you can earn additional yield by locking up your LP tokens to farm them for native protocol tokens.

How Trader Joe (DEX) makes money

TraderJoe charges a 0.3% fee on all trades within its liquidity pools. Similar to SushiSwap, TraderJoe distributes 0.05% of the fee to JOE token holders proportional to the amount they stake on the platform.

How you make money on Trader Joe (DEX)

As a liquidity provider (LP) on TraderJoe, you earn 0.25% of every trade within a pool, in additon to yield farming rewards paid in native protocol tokens. JOE holders can also earn a portion of protocol fees by staking on the platform in exchange for sJOE.