The Trader Joe protocol is slowly but steadily building a solid DeFi reputation. Currently, they offer three different staking options. They call them “modular staking pools.” It adds to the use cases for the JOE token.
We will focus on staking sJOE. This gives you a reward in the USDC stablecoin. So, let’s have a closer look at how this works in Trader Joe.
What Is sJOE?
The sJOE token is the follow-up or replacement token for the xJOE token. Furthermore, when you stake JOE, sJOE will give you rewards or yield in the USDC stablecoin. But why the change? The xJOE token is still around but is not compounding anymore. The whole idea is to improve the UX (user experience).
The change from xJOE to sJOE gives also a clearer view on the rewards. It also makes it easier to access the staking options on Trader Joe. As a result, there should be a higher demand for sJOE.
With sJOE, you can immediately see how much your yield is. Furthermore, you can claim your rewards easily, like a yield farm. However, the previous staking rewards was in xJOE. Why did Trader Joe change this to a stablecoin? Another good question, but Joe has also two good answers.
- Providing JOE as a reward creates sell pressure. This sell pressure is gone now.
- A stablecoin is versatile and will most likely create more engagement on and with Trader Joe.
sJOE Staking offers you one certainty in an uncertain market
Forecast APR: 81% (based on previous 7d payouts) pic.twitter.com/KcnBRPsuNN
— Trader Joe (@traderjoe_xyz) May 19, 2022
How Does Staking sJOE on Trader Joe Work?
For every swap that happens on Trader Joe, they charge a 0.05% fee. The protocol collects this fee and swaps it into the USDC stablecoin. Every 24 hours, they distribute this USDC to the sJOE pool.
- Follow these steps to stake your JOE tokens for sJOE.
- Connect your wallet, like MetaMask, to the Avalanche network and buy AVAX.
- With your AVAX tokens, buy JOE tokens.
- Keep a small amount of AVAX in your wallet to pay for transaction fees. 0.1 AVAX will go a long way.
- Go to the Joe staking page. See picture below. At the time of writing, the APR is 36.72%. See the red box and arrow. To clarify, be aware that this figure can change. The deposit fee is 1%. See the green box and arrow. The deposit fee varies and can go up to even 3%. This depends on the number of staked JOE. At the time of writing, these fees go to the Treasury.
Source: Trader Joe staking page
- Select the staking pool with sJOE.
- Deposit the amount of JOE you want to stake. Confirm this in your wallet.
- When you like to claim rewards, click “Get Harvest.” See the picture below.
- Congratulations, you just set your JOE staking pool up. You also know now how to claim rewards.
Source: Trader Joe
We showed you how to stake the JOE token into sJOE. As a reward, you receive the USDC stablecoin. Trader Joe is an interesting DeFi platform with attractive yield options.
The JOE token is trading at $0.417903, according to CoinGecko. This is 3.5% down from 24 hours ago, but still 2% up over the last seven days. The market cap is $112 million with a max supply of 500 million JOEs. The current supply is 268 million JOE tokens.
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