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

Lending

Banker Joe

Protocol Code Quality

Protocol Maturity

Protocol Design

Risk Rating

Watch Out

* [Documentation](https://docs.traderjoexyz.com/) 
 * Auditors 
 	* [Paladin](https://paladinsec.co/assets/audits/20211004_Paladin_Trader_Joe_Bank_Final_Report.pdf) 
 	* [Audits](https://docs.traderjoexyz.com/main/security-and-contracts/audits) 
 * Please see our [FAQ on experienced auditors](https://help.exponential.fi/en/articles/6381015-what-are-experienced-auditors)

Exploit/Hacks

green

None

* [Website](https://traderjoexyz.com/lending#/)  
 * Token: JOE  
 * Tags: Lending

Info

* TVL: $72.7M (Rank #60)  
 * TVL Ranking by Lending: #0  
 * Blockchain: Avalanche  
 * Chain TVL  
 	* Avalanche: $57.91M

Key Metrics

Information


- Code reviewed by at least one experienced auditor; [Paladin](https://paladinsec.co/assets/audits/20211004_Paladin_Trader_Joe_Bank_Final_Report.pdf) audited in October 2021
- Anonymous team reduces transparency
- No documented protocol hacks since launch
- Robust controls to mitigate oracle price manipulation

yellow


- Core protocol launched in 2021; maturity less than 1 year increases technical risk as smart contracts are less battle-tested
- Top 5% by total value locked reduces risk
- Governance decentralization is in the roadmap
- Low voting power concentration reduces risk


- No concerns identified
- Cross-collateral markets are exposed to systemic risks as each asset creates incremental risks for the platform as a whole

Risk Assessment

TraderJoe's lending platform, Banker Joe, is based on the Compound protocol, one of the most reputable money market protocols.

What we like

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 we like less

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.

What it means for you

Summary

#### 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.