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Users can now use Banker Joe to make profits on their assets by lending them to other individuals through non-custodial pools or putting their existing assets up. Banker Joe consults Chainlink’s decentralized pricing oracles to determine a person’s borrowing capacity during loan issuance and checks loans for under-collateralization during liquidations. Importantly, the Chainlink connectivity allows for easy expansion of Price Feed compatibility for additional assets in the future.
Trader Joe chose Chainlink as its decentralized oracle system because it is the most tried and tested option in the blockchain space, having already helped secure tens of billions for top DeFi apps across multiple blockchain systems. During moments of intense market turmoil and network problems, Chainlink Price Feeds has delivered high-quality data and stable infrastructure, continuously updating them correctly and safely.
Furthermore, Chainlink Price Feeds assure that every Banker Joe transaction that depends on asset values reflects real-time, worldwide markets.
Banker Joe is an important part of the plan to make Trader Joe into an all-in-one trading system on Avalanche. Non-custodial leveraged dealing is possible because of Banker Joe’s lending capabilities and DEX. For example, users can deposit security and loan assets from Banker Joe to effectively make short or long trades. However, borrowing is not without risk, as customers can be liquidated if their ‘borrow limit’ exceeds 100%, culminating in the liquidators confiscating 8% collateral of the user.
Appropriate price feeds are essential to ensure that loans are provided, repaid, and liquidated at reasonable market rates. This is critical for preventing slippage and erroneous liquidations caused by improper oracle operations. Trader Joe chose Chainlink over other pricing oracle systems because of its successful track record of dependability, saving several protocols from unforeseen events like flash crashes, exchange outages, and data manipulation via flash loans.
Chainlink Pricing Feeds have a number of important improvements, including:
- Data of Excellent Quality – Chainlink Price Feeds obtains information from several premium data aggregators, resulting in price information collected from dozens of exchangers, balanced by size, and free of anomalies and questionable quantities.
- Rapid Updating Frequency – Chainlink Price feeds are protected by separate, Sybil-resistant database nodes operated by top blockchain DevOps groups and conventional organizations with a proven track record of reliability.
- Stable & Reliable Infrastructure – Chainlink Pricing feeds are decentralized at the data source, oracle node, and oracle system levels, resulting in robust security against data company and oracle network failure and manipulation.
About Chainlink
Chainlink is the industry norm for creating, obtaining, and distributing oracle services required to run hybridized smart contracts on any blockchain.
About Trader Joe
Trader Joe is a decentralized one-stop-shop dealing structure developed on the Avalanche blockchain. Trader Joe’s develops effectively and reliably to serve the public on the cutting edge of DeFi.