Trader Joe is one of the platforms where you can make money via cryptocurrency. Several crypto platforms have created avenues for their users to earn. One of such is Trader Joe.
This platform has crypto services available for crypto traders and investors to make profits with crypto assets. If you’re looking forward to the enormous possibilities to earn on Trader Joe, this post is for you.
You’ll learn about Trader Joe and how to make money on this platform.
What is Trader Joe?
Trader Joe is self-proclaimed one-stop trading on the Avalanche (AVAX) blockchain. It launched its decentralized exchange on June 29th, 2021. It has plans to offer DeFi lending and leveraged trading at a later date.
The platform’s has a token known as the ‘Joe Token’ which allocates fees collected from liquidation and swaps back to the users via staking.
Trader Joe is well known as a platform that offers a slick and friendly user experience that appears to be attracting crypto traders.
How does Trader Joe Work?
The core function of Trader Joe is as an exchange platform. People can use the exchange to swap the native Avalanche (AVAX) and other cryptocurrencies. To make this possible, the platform needs liquidity.
Anybody visiting Trader Joe can become a liquidity provider by buying a share of these tokens and then allowing Trader Joe to exchange them. For each liquidity pool, you provide some tokens and an equal amount of value in JOE tokens. For performing this action, you get rewarded with more JOE.
The more people who want to exchange tokens on Trader Joe, the more transactions take place and the higher the pay for liquidity providers. The more people who want to provide liquidity, the higher the supply, and unfortunately the lower the reward. Your provided liquidity, or money, gets moved around several hundred times a day, each time earning you a share of transaction fees.
How to Make Money on Trader Joe
There are steps to take before you proceed to make money on Trader Joe. You’ll need an Avalanche wallet and AVAX token to be able to make money on this platform. You’ll also need to set up your the wallet and fund your MetaMask connected to Avalanche.
When you do these, you can then make money on this platform through 4 various means. They are discussed below.
1. Swap AVAX for JOE
Once you connect to a wallet, at the homepage interface, select Trade on the navigation bar at the top of the screen, or select the Trade icon in the middle of the screen.
Step 1: Select the token and enter the amount you want to trade from the list. We will use the AVAX and JOE pair as an example in this article. If you want to Swap other tokens, you just need to select the corresponding tokens in the list. For new tokens that have not been listed on Trade Joe, you can paste their address (contract) into the search bar then trade as normal.
Step 2: Check transaction details carefully:
- Maximum sold: The maximum number of tokens that you will swap
- Price impact: Estimated difference % between the price when swap compared to displayed price
- Liquidity Provider Fee: 0.25% of every transaction will be used for providing liquidity.
Step 3: Select Swap.
- The system will send notification on details of the transaction again on the screen. If you acknowledge, select Confirm Swap.
- The system will then charge a very small network fee to Swap If you acknowledge, select Send.
2. Provide Liquidity
On the homepage, select Pool on the navigation bar at the top, or select the Pool icon in the middle of the screen.
Step 1: Select the token pair that you want to contribute to the liquidity pool. For this example, we will choose the JOE-WAVAX pair.
Step 2: Enter the amount for each token, select Approve JOE. The system will charge a very small fee to Approve. If you agree, select Send.
Step 3: Select Supply – Confirm Supply to contribute to liquidation.
Step 4: Select Send if you agree with the cost for liquidity contribution.
And so, we finished with adding liquidity to the pool. You can check your liquidity contributions at My Pools.
3. Farming
On the homepage, select Farm on the navigation bar at the top of the screen, or select the Farm icon in the middle of the screen.
Step 1: Select the Farm you want to join. You can click on the search bar to choose.
Here we will choose the JOE-WAVAX pair as an example -choose Approve. The system will ask you to pay a small network fee to join the farm. If you agree, select Send.
Step 2: Enter the amount of LP Token you want to Farm -Stake Trader Joe will ask for a small fee for confirmation, then select Send.
After the transaction is successful, the system will show the detailed number of LP Tokens and Tokens received over time. If you want to harvest tokens you have staked, click Harvest.
4. Stake JOE to get XJOE
On the homepage, select Stake on the navigation bar at the top of the screen, or select the stake icon in the middle of the screen.
Step 1- Select Approve
Step 2- Enter the amount of JOE you want to stake, select Stake. The system will ask for a small fee to confirm, select send.
Step 3- After a successful stake, the system will display the detailed amount of staked JOE and the corresponding and amount of xJOE to be received in real time. If you want to stake more JOE token, repeat step2.
For each JOE swap order, a 0.05% fee will be transferred to xJOE. Currently, the buyback occurs every two days. When you unstake, you’ll get back the total staked JOE and the above fee. Select Unstake and do as earlier if you want to unstake.
Conclusion
Trader Joe’s user friendly platform is one of the several platforms where you can make passive income via as a crypto trader. You have to know that every crypto endeavor isn’t without risk and using this platform isn’t an exception.
