In this article, I want to talk about an Avalanche DEX (decentralized exchange) that I like: it’s called Trader Joe.
A decentralized exchange like Trader Joe is a place where you can trade, pool, farm, stake or lend tokens. In other terms, it’s a decentralized finance platform that most people use to generate passive income.
Almost every blockchain has a DEX, but in this article, I want to focus on Avalanche.
1. Why use Avalanche to create crypto passive income ?
Avalanche is an open, programmable smart contracts platform for decentralized applications.
It’s the fastest blockchain on earth in terms of time-to-finality (the time it takes for a transaction to be processed end-to-end) but also one of the cheapest.
These are the reasons why I use Avalanche to generate passive income on the blockchain – every action or transfer is both cheap and fast.
2. Trader Joe: presentation of my favourite DEX on Avalanche
You can do multiple things on Trader Joe: trade, pool, farm, stake, lend or swap.
Soon you will even be able to vote. Some very brief explanations of the terms:
-trade: you buy or sell tokens. -pool: pools are a place for you to provide liquidity. You can create or join one to earn tokens within it. -farm: you earn extra rewards on your pools. -stake: you stake you Joe tokens in the Trader Joe protocol. You are locking them up. In exchange you receive the protocols interest-bearing token. -lend: you’re lending your tokens to someone else at a given interest rate. -swap: you exchange a token for another one.
3. An example of a juicy workflow I use: swap, stake and farm
A workflow I like is “swap-stake-farm”. Buy some AVAX on an exchange, “swap” it for some JOE token, stake your JOE token and “farm” the resulting XJOE token you get from the staking.
It looks like this:
This generates at the very least 40% APY excluding the growth of the tokens themselves. There’s a bit of risk as the tokens are volatile but most of the time it’s extremely rewarding.
4. Get some data about Trader Joe: Trader Joe’s dashboard
Trader Joe also has a Dashboard which I like, just like other dashboards I’ve covered here.
It is great to monitor what’s going on and provides you with some analytics that you can use to invest. You can follow the volumes, pools, tokens, and much more:
What are you waiting for, give it a try now ?
Take care,
Clem
