Banker Joe

Lending

Banker Joe is Trader Joe's decentralized lending protocol that allows anyone to borrow and lend crypto assets.

Risk Rating
Watch Out
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
TraderJoe's lending platform, Banker Joe, is based on the Compound protocol, one of the most reputable money market protocols.
What we like less
Banker Joe is still very small relative to its sister DEX and will likely require more inflationary protocol emissions to capture market share from the top Avalanche lending platform, Benqi.
What it means for you
Banker Joe is a simple way for you to easily earn additional yield by lending your crypto assets to borrowers without leaving the Trader Joe ecosystem.
Information
Exploit/Hacks
None
Info
Key Metrics
  • TVL: $42.3M (Rank #80)
  • TVL Ranking by Lending: #0
  • Blockchain: Avalanche, Binance
  • Chain TVL
    • Avalanche: $42.26M
    • Binance: $20.14K
Risk Assessment
Watch Out
Protocol Code Quality
  • Code reviewed by at least one experienced auditor; Paladin audited in October 2021
  • 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
  • Robust controls to mitigate oracle price manipulation
  • Cross-collateral markets are exposed to systemic risks as each asset creates incremental risks for the platform as a whole
  • Basic controls in place to prevent risky borrowing
  • Basic mechanisms in place to incentivize liquidations
  • Basic method to accrue protocol reserves
Things to know about Banker Joe

How Banker Joe works

Banker Joe consists of a decentralized system of lending pools. Users deposit assets they want to lend into a liquidity pool and borrowers draw from the pool when they want to take out a loan. Banker Joe borrowers must first supply assets before they can borrow. Given the high volatility of crypto assets, borrowers must post more collateral than the value of the loan, or commonly referred to as overcollateralization. Interest rates on Banker Joe are driven by market supply and demand. To facilitate this activity, Banker Joe issues jTokens to lenders that reflect accruing interest on the underlying token.

How Banker Joe makes money

Banker Joe currently charges a reserve factor that allocates a share of borrowers' fees to the protocol. Each supported asset has a reserve factor based on the asset's individual risk that determines how much goes into the reserve.

How you make money on Banker Joe

You earn lending fees on Banker Joe by depositing your idle crypto assets to be used by borrowers looking for leverage.

Banker Joe Pools
Trader Joe ETH Lending
1.98%
Yield 30d
$1M
TVL
Risk
D
Protocol
Banker Joe
Chain
Avalanche
Trader Joe USD Lending
5.12%
Yield 30d
$583K
TVL
Risk
D
Protocol
Banker Joe
Chain
Avalanche
Trader Joe USD Lending
3.91%
Yield 30d
$498K
TVL
Risk
D
Protocol
Banker Joe
Chain
Avalanche