Banker Joe is Trader Joe's decentralized lending protocol that allows anyone to borrow and lend crypto assets.
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.
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.
You earn lending fees on Banker Joe by depositing your idle crypto assets to be used by borrowers looking for leverage.