Avalanche DEX Trader Joe today announced the launch of Banker Joe, a new lending and borrowing platform powered by Chainlink price feeds.
Chainlink is the industry standard for creating, 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 to enable feature-rich applications.
After today’s integration, users can leverage Banker Joe to earn interest on their assets by lending them to others through non-custodial pools, or by posting their own assets as collateral to borrow more money. assets.
Banker Joe refers to Chainlink’s decentralized price oracles to determine a user’s borrowing capacity when issuing a loan 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 to more assets in the future.
Why did Trader Joe choose Chainlink?
Trader Joe said he joined Chainlink because it is the most trusted decentralized oracle network in the blockchain industry, which already secures tens of billions of dollars for major DeFi applications on various blockchains.
“Chainlink Price Feeds has proven over a long period of time to deliver high quality data and a robust infrastructure, constantly updating accurately and securely during times of extreme market volatility and network congestion”, the developers of Trader Joe said in a statement, adding that Banker Joe is a crucial part of the overall vision to transform Trader Joe into a single trading platform on Avalanche.
Users can post collateral and borrow assets from Banker Joe to effectively take long or short positions. However, borrowing is not without risk, as users can be liquidated when their health ratio falls below the 65% collateral factor.
Some of the notable Chainlink price feed optimizations include:
- High Quality Data – Chainlink Price Feeds provides data from many premium data aggregators, leading to price data that is aggregated from hundreds of exchanges, weighted by volume, and cleaned of outliers and suspicious volumes.
- Secure Node Operators – Chainlink price feeds are secured by independent, Sybil-resistant oracle nodes operated by leading blockchain DevOps teams and traditional enterprises with a strong track record of reliability.
- Decentralized Network – Chainlink price feeds are decentralized at the data source, oracle node, and oracle network level, generating strong protections against downtime and tampering by the data provider or oracle network.
- Transparency – Chainlink provides a robust reputation framework and set of on-chain monitoring tools that allow users to independently verify the historical performance of node operators and oracle networks, as well as verify the real-time prices offered.
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