For transparency I just started adding JOE on Avalanche to the portfolio around the 2.5$ range. We are not extremely early to this play, but it has a tremendous upside. This article is why we are extremely bullish on JOE and AVAX.
How to get AVAX
Thankfully, coinbase pro has added ethereum AVAX for purchase recently. AVAX will be needed to get JOE, or other tokens within the ecosystem. This can easily be sent to the AVAX wallet [here]. Users need to send this AVAX to the “c” chain on the wallet, this is the part of that wallet that interacts with Ethereum based applications/tokens. Once you have these tokens on the AVAX wallet, you must set up your Metamask to work with Avalanche main net. Pangolin, another project on Avalanche has a great guide for doing this [guide]. Once your Metmask is set up, switch to the Avalanche main net, then send your “c” chain AVAX to meta mask, this should reach finality very quickly. Make sure to leave a small amount of AVAX in each wallet for network fees. Once your funds of AVAX are in your metamask, open [JOE]. We provide these links to help you avoid being phished by potential hackers/scammers. You can then swap your AVAX for JOE if you decide you want to get some!
What is JOE?
JOE is a decentralized exchange leading the way within the Avalanche ecosystem. JOE can be compared to Uniswap, Sushiswap, Pancake swap and more. For more information on Avalanche please check out my writing on it [AVAX]. JOE begins with offering the normal swap feature we see on all DEXs, it brings its value up a notch by mixing this service with other decentralized finance (DeFi) protocols. Today the staking APY for joe is around 27%, this is the least risky option for a yield offered on joe.
Users can pool a match of two tokens for a given APY percentage, this generally outperforms simply staking the JOE token. Bringing this to another level, joe also offers farming opportunities. As I mentioned in my most recent media update, I am currently farming using a JOE-AVAX pair, which is equal dollar value or the two for 98% + 19% respectively. JOE offers lending services, promising a return based on the loan interest from borrowers using the funds. This is like what Blockfi does but on a decentralized platform, defi usually offers much higher APY. Joe also has a “Zap” protocol which allows for 1 button LP token conversions, very easy to use, I have tested this myself.
Tokenomics/Team
To begin, JOE has similar initial token allocations to other projects I am bullish on, this is a great sign. JOE reserves 50% of the allocation for liquidity providers, and 20% for the treasury. Treasuries reserve funds for project development, marketing, and other expenses. The rest of the initial allocation can be reviewed in the graphic provided. JOE has a limited supply of 500,000,000.
- 05% of all trades are paid to xJOE staking pool.
- A share of fees from lending interest and liquidations will also be paid to the xJOE staking pool. The % will be determined at launch of lending product.
- JOE token holders may stake their JOE to xJOE and receive a share of the revenues.
Since JOE is a governance token, holders will be granted voting rights scaled to their individual holdings.
The JOE team is diverse, both Founders are full stack experts in the field. Cryptofish (one of the founders) even worked for Google, and a centralized derivative trading company. The rest of the team is full of software engineers and includes a graphic artist and marketing lead. This team combination is exciting, almost all team members can assist in building the actual ground foundation of the protocol because of their training.
JOE Thesis
Before buying JOE, I spent a day using the different services offered on the platform. It was incredibly cheap to experiment because Avalanche is so affordable to use. I ended up settling on an allocation to the farm mentioned and I am staking the rest to have direct exposure to the token rate of return. The token farms on JOE have almost 1-billion dollars of value locked to date. JOE is averaging anywhere from 250k-1.5million dollars in daily revenue for the platform. Over 180 million dollars of Joe is currently staked, this is more than half of the circulating supply and possibly over 67%. Joe has had nearly 2-billion dollars deposited for lending, and almost 800 million dollars borrowed so far.
The total value locked using Defi Llama is 2.4 billion today. This brings JOE to a TVL-Mcap ratio of .012, remember lower values are better using this metric. JOE has 2x the ratio benefit vs. AAve which is generally what I compare these ratios to. Comparing the ratio to Uniswap, Pancakeswap and Sushiswap, JOE appears VERY undervalued. Another option on JOE which I am considering doing, is taking my large stable coin allocation and Farming a combination for 18.5% APR. Remember this is not financial advice, I am incredibly bullish on AVAX and JOE, so much so that I might be dollar-cost averaging it into my top three since the narrative is so strong. Stay safe out there, and remember, never trade based on emotion (SHIBA is seeing this) take your time, do your own research and thrive!
