Trader Joe is a decentralized trading platform that is native to the Avalanche blockchain and has a rapidly growing ecosystem. And Chainlink is making a name for itself in that.
Avalanche DEX Trader Joe launched Banker Joe today, a new lending and borrowing platform powered by Chainlink price feeds.
Chainlink is the industry standard for developing, acquiring, and reselling oracle services required to power hybrid smart contracts on any blockchain. Chainlink oracle networks enable smart contracts to connect to any external API while also leveraging secure off-chain computations to enable feature-rich applications.
Users can now use Banker Joe to earn interest on their assets by lending them to others through non-custodial pools, or by depositing their own assets as collateral to borrow more assets, thanks to today’s integration.
Banker Joe consults Chainlink decentralized price oracles during loan issuance to determine a user’s borrowing capacity and to check loans for under-collateralization during liquidations.
The initial integration of Trader Joe supports multiple Chainlink Price Feeds: AVAX/USD, ETH/USD, WBTC/USD, LINK/USD, USDT/USD, USDC/USD, and DAI/USD. Importantly, our integration with Chainlink allows us to easily add Price Feed support for additional assets in the future.
Chainlink was chosen by Trader Joe for several reasons.
Trader Joe stated that it integrated Chainlink because it was the most dependable decentralized oracle network in the blockchain industry, already securing tens of billions of dollars for leading DeFi applications across multiple blockchains.
“Chainlink Price Feeds have proven over an extended 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,” Trader Joe developers said in a release, adding that Banker Joe is an important component of the overall vision to transform Trader Joe into a one-stop trading platform on Avalanche.
Users can deposit collateral and borrow assets from Banker Joe in order to make effective long or short positions. Borrowing, however, is not without risk, as users may be liquidated if their health ratio falls below the 65 percent collateral factor.
Among the notable Chainlink Price Feeds optimizations are:
High-Quality Data — Chainlink Price Feeds obtain data from a variety of premium data aggregators, resulting in price data that is aggregated from hundreds of exchanges, weighted by volume, and free of outliers and suspicious volumes.
Chainlink Price for Secure Node Operators Feeds are secured by Sybil-resistant oracle nodes run by leading blockchain DevOps teams and traditional enterprises with a track record of dependability.
Chainlink Price in a Decentralized Network Feeds are decentralized at the data source, oracle node, and oracle network levels, resulting in strong safeguards against downtime and tampering by the data provider or the oracle network.
Transparency — Chainlink offers a strong reputation framework and a suite of on-chain monitoring tools, allowing users to independently verify the historical performance of node operators and oracle networks, as well as the real-time prices being offered.