Avalanche DEX Trader Joe turns to Chainlink for new lending platform ‘Banker Joe’
Avalanche DEX Trader Joe today announced the launch of Banker Joe, new lending and borrowing platform powered by Chainlink price feeds.
Chainlink is the industry standard for building, accessing, and selling oracle services needed to power hybrid smart contracts on any blockchain. Chainlink oracle networks provide smart contracts with a way to reliably connect to any external API and leverage secure off-chain computations for enabling feature-rich applications.
After today’s integration, 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.
Trader Joe’s initial integration 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 can easily expand Price Feed support for more assets in the future.
Why did Trader Joe choose Chainlink?
Trader Joe said it integrated Chainlink as it was the most reliable decentralized oracle network in the blockchain industry, one that already helps 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,” Trader Joe developers said in a release, adding that Banker Joe is a crucial component of the overall vision to turn Trader Joe into a one-stop trading platform on Avalanche.
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.
Some of the notable optimizations of Chainlink Price Feeds include: