How to farm on Trader Joe: Earning boosted yields
Trader Joe is the leading DEX on Avalanche and serves as a one-stop-shop for all your DeFi needs. Today SteakHut walks you through how to farm on Trader Joe and get the most out of your tokens.
What is yield farming with Trader Joe?
Yield farming is a way of using decentralized finance (DeFi) to earn interest on your tokens. There are a large number of ways to yield farm in DeFi. With Trader Joe, users can supply liquidity to DeFi protocols and in return generate a return on their investments, this is called liquidity mining.
Liquidity mining is the process where users can earn passive income by depositing tokens into a smart contract-based liquidity pool.
Trader Joe’s liquidity pools allow yield-hungry investors to earn passive income by supplying liquidity to the market.
What is a liquidity pool?
A liquidity Pool (LP) is a smart contract containing two assets kept at a ratio of equal value. A liquidity pool creates a market allowing users to trade between the two assets and establishes a price for the tokens.
Users (called liquidity providers) can supply liquidity to these pools by providing an equal value of both tokens. In exchange, liquidity providers receive an LP token.
Every time the liquidity pool is utilized a small trading fee is retained by the pool and shared amongst liquidity providers in proportion to their total share of liquidity.
LPs allow users of the DEX to trade between the two assets.
With Trader Joe, users can supply liquidity to hundreds of different liquidity pool pairs. When a trade is facilitated by the pool, a 0.25% fee is proportionally distributed amongst all the LP token holders.
How to become a liquidity provider with Trader Joe?
Trader Joe has been designed to make it very easy for anyone to use. To become a liquidity provider, you can head over to Trader Joe’s pools and select from a large variety of liquidity pools.
Within their pools, you can either view all pools or search for a specific liquidity pool by token pair.
Step one: Access Trader Joe’s website and connect your wallet.
Step two: Head over to Trader Joe’s pools and select a liquidity pool of your choice.
Step three: Enter the number of tokens you would like to deposit
By entering the number of tokens to deposit into the liquidity pool for asset A Trader Joe will automatically calculate the number of tokens required to complete the pair for asset B.
You can also head to Zap which allows you to enter a token of your choice and automatically “Zap” it into an LP token. Once your JLP token is created, it will be credited to your connected wallet address.
What is liquidity farming?
With Trader Joe you can then stake your JLP tokens into farms to earn extra yield. Through yield farming not only will you continue to earn trading fees from the liquidity pool, but you can also earn extra rewards.
There are a number of farming models employed by Trader Joe:
· Double Reward Farm: Earn JOE + Token X
· Boosted Farms: Earn JOE with increased yields from veJOE
· Standard Farm: Earn JOE
· Single (no JOE) Farm: Earn Token X
How to start farming?
Step one: Head over to Trader Joe’s farms and find the farm of your choice.
Step two: Enter the amount of LP tokens you would like to stake into the farm.
As your rewards grow you can harvest your rewards at any time by visiting your selected farm and selecting harvest.
Understanding liquidity farming rewards
Within Trader Joe’s farms, you will notice a number of different APRs: Pool APR, JOE APR, and double reward farms will also have a bonus APR.
· Pool APR: Fees collected by Liquidity Pools, paid on top of your position.
· JOE APR: JOE Tokens that can be collected by selecting Harvest.
· Bonus APR: Bonus Reward Tokens that can also be claimed by selecting Harvest.
Boosting farming yields with veJOE
With Trader Joe’s new ‘ve’ or Vote Escrow tokenomics you can earn even higher rewards on selected farms by staking your JOE for veJOE.
With veJOE you unlock access to 40% of the JOE Rewards that are directed to a Farm.
To unlock these boosted rewards, you must first stake some JOE into veJOE. Within Trader Joe’s Farms, you can then search through boosted farms to see which farms are eligible for veJOE boosts.
The amount of veJOE you have will determine your share of boosted rewards and can lead to some extra lucrative returns. However, if you unstake any of your JOE, you will lose all of your accrued veJOE and those bonus rewards.
Yield boosting and SteakHut
SteakHut is a yield-boosting protocol that has been built for Trader Joe’s Liquidity Pools. We help take the work out of your JOE farming and allow you to get the highest possible yields!
How do I use SteakHut?
Step one:
Head over to SteakHut, connect your wallet, and select “Join the Herd Now”.
Step two:
To enjoy boosted yields select our “Herd Boosted LPs”.
Step three:
Scroll through our list of boosted pools until you find one you would like to join.
Step four:
In your selected pool you can enter the number of tokens to stake!
If you don’t have any JLP tokens clicking the name of the token pair will redirect you to Trader Joe to create the required LP token!
You will notice our cards have a lot of valuable information:
· TVL (Total Value Locked): This is the total value in USD of all LP tokens currently enjoying our boosted yields.
· APR: APR demonstrates the estimated annual yields on the selected pool. This is calculated in real time and will fluctuate depending on a number of factors including the underlying pool trading volumes, our boost amounts and TVL across the pools.
By clicking on APR, you can see a full breakdown of yields:
· BASE APR: This is the base rewards paid by the farm. This is paid in JOE tokens, it accrues in real time and is collectable when you select harvest.
· BOOSTED APR: This is the boosted rewards paid which SteakHut offers though our large veJOE balance. This is paid in JOE tokens. It also accrues in real time and is collectable when you select harvest.
· LP: The LP is the APR on the underlying liquidity pool, this is created from trading fees when investors use the liquidity pools and is distributed to liquidity providers.
Step five:
After entering and approving the amount, you can enjoy our boosted yields and harvest rewards as they appear in real-time!
How does SteakHut work?
SteakHut is a yield-boosting protocol that is powered by Trader Joe’s veJOE staking. SteakHut’s Herd uses our JOE balance to accumulate a mass of veJOE. This allows us to offer yield farmers much higher yields than are possible when farming alone!
SteakHut has been built for the Trader Joe community. We even launched with Trader Joe’s Rocket Joe Launchpad! We offer a secure audited platform trusted by the Trader Joe community. Our goal is to offer our users the lowest fees and highest rewards!
With SteakHut, you can join and enjoy our boosted yields without even owning any JOE or veJOE. We make it extremely easy to take your farming to the next level.
SteakHut Links:
Website
Whitepaper
