The Trader Joe team announces the launch of Banker Joe, a new asset lending and borrowing platform powered by Chainlink Price Feeds. Banker Joe refers to Chainlink's decentralized price oracles and from now on, users can leverage Banker Joe to earn interest on their assets by loaning them to others.
Now, users can leverage Banker Joe to earn interest on their assets by loaning them to others via non-custodial pools, or by depositing their own assets as collateral to borrow more assets. Banker Joe references Chainlink decentralized price oracles to determine a user’s borrowing capacity during loan issuance and check loans for under-collateralization during liquidations.
Currently supported assets
Trader Joe’s initial integration supports multiple Chainlink Price Feeds. Importantly, the integration with Chainlink can easily expand Price Feed support for more assets in the future.
- AVAX/USD
- ETH/USD
- WBTC/USD
- LINK/USD
- USDT/USD
- USDC/USD
- DAI/USD
Trader Joe decided to integrate Chainlink because it is the most time-tested and reliable decentralized oracle network in the blockchain industry, already helping secure tens of billions of dollars for leading DeFi applications across various blockchains. Chainlink Price Feeds have proven over an extensive period of time to provide high-quality data and robust infrastructure, consistently updating accurately and securely during periods of extreme market volatility and network congestion. Ultimately, they help ensure that each transaction on Banker Joe that relies on asset prices will reflect real-time, global markets.
Overall vision of the cooperation
Banker Joe is a crucial component of the overall vision to turn Trader Joe into a one-stop trading platform on the smart contract platform Avalanche. Banker Joe’s lending functionality combined with their DEX enables non-custodial leverage trading. For instance, users can deposit collateral and borrow assets from Banker Joe to effectively make long or short positions. However, borrowing doesn’t come without risk, as users can be liquidated when their health ratio falls below the 65% collateral factor.
“With Chainlink Price Feeds, Banker Joe now has a time-tested and battle-hardened oracle mechanism that further ensures user loans are protected from faulty liquidations due to exchange downtime, single exchange inaccuracies, flash loans, and other common DeFi exploits.” - 0xMurloc, Co-founder of Trader Joe
Accurate price feeds are critical to ensuring that loans are issued, closed, and liquidated at fair market prices. This is extremely important not only for reducing slippage but for avoiding inaccurate liquidations due to faulty oracle functions. After exploring various price oracle solutions, the Avalanche project decided to go with Chainlink because of its strong track record of reliability, saving many protocols from unexpected events like flash crashes, exchange downtime, or data manipulation via flash loans.
