TraderJoe is the premier DEX on Avalanch network. Avalanch Network is Ethereum Virtual Machine (EVM) based network that is competing with Ethereum for its low gas fees and high networth throughput. AVAX Total value lock is gaining considerably over Ethereum as of shooting this video. Avalaunch is one of many blockchains that are competing to overthrow Ethereum as the dominant smart contract network.
In order to invest in stablecoin, you need to have your stablecoins in Web 2.0 wallet like Metamask. I will provide a link below on how to setup Metamask Browser Extension on Chrome, Firefox, Brave and Microsoft Edge browsers. Chrome Metamask Plugin works also in Brave browser. When you install Metamask Browser plugin, it will only install Ethereum default network. In order to install Polygon and Fantom Networks go to Chainlist.org and select Polygon and Fantom networks to add it to the supported networks.
How to Buy Avalanch (AVAX) Coin from Exchange and Transfer into Metamask Wallet
I would buy AVAX from CoinEx centralized exchange because fees are like 0.003 AVAX much less than Hubi Global fee of 0.01 AVAX at $0.65 at current AVAX price of $65. You can get AVAX from any of the supported exchanges listed on CoinMarketCap. AVAX can be purchased Binance.com (Non US Users), Coinbase, Huobi Global, KuCoin, Bitfinex. I like using KuCoin exchange because of lower fees and no restrictions for US users. I used KuCoin centralized exchange to purchase AVAX tokens from USDT I had. Then, I switch to withdrawal tab. I select C-chain. You want to transfer funds in C-Chain to your metamask wallet. C-chain is for contract chain. Do not send via X-chain to MetaMask or you will permanently lose your funds. I copied my Metamask C-Chain AVAX wallet address and copied into withdrawal address of Kucoin AVAX token. Then you need to complete the 2FA authentication before funds are withdrawen to MetaMask AVAX wallet address. My Funds arrived under 5 minutes to MetaMask wallet. Now I am ready do TraderJoe DEX investing magic.
Swap AVAX to USDC and USDC.e StableCoins
Using your initial AVAX that was transfered in my case 6.85 AVAX tokens, I first Convert to USDC. I buy accident converted AVAX to USDT. I notice USDT APY is lot less at 15% APY. So I decided to convert the USDT into USDC. I had to pay like $1.00 in liquidity provider fee besided $0.10 in AVAX for gas. First you need to approve the Swap half of my AVAX 3.35 to USDC. Remember to keep 0.1 AVAX free to pay for AVAX gas. Then confirm the Swap with AVAX gas again around $0.10. Next I convert other half of AVAX 3.35 to USDC.e. Then I go to my MetaMask wallet and you will see $217 USDC.e and $221 USDC.
Provide Liquidity to USDC/USDC.e Liquidity Pair
Now you alread have $217 USDC.e and $221 USDC tokens on my MetaMask wallet, I pick Max lower amount of USDC.e token at $217. Since you cannot get exactly half half of equal tokens during the swap, just pick the lower amount of tokens and make that as Max. You have to invest equal worth half amount of tokens on any liquidity provider pair. First approve USDC.e with AVAX gas again at cost of $0.10. Wait until this confirms with block chain. You will now see USDC approve button enabled. Secondly, approve second token in this case USDC with $0.10 AVAX gas. Wait until this confirms with block chain. You will now see Supply button enabled. Thirdly, confirm the liquidity providing by clicking on Supply button gain with $0.10 worth of AVAX gas. After this third transaction is confirmed you have succesfully provided liquidity to Stable coin pair in AVAX.
How to Farm on TraderJoe for the USDC.e/USDC Liquidity Pair
Next, I will show you how to provide liquidity to USDC.e/USDC Farming Pair to earn additional JOE tokens at 1.71% APR on top of 30% APY with trading fees. Now go to the Farm tab on TraderJoe. You will see USDC.e-USCD LP pair. Click on it. Click Max about amount of LP token you want to invest. Click approve with AVAX gas and click Submit with AVAX gas again. This will confirm your investment in Liquidity tokens in TraderJoe AVAX farm.
After you invested in Liquidity tokens, you will see that your USDC and USDC.e tokens are gone from your MetaMask wallet into the Liquidity token called JLP. You will see a fraction of Liquidity token in JLP that corresponds to your USDC and USDC.e token share. Exactly how LP tokens amount is computed is beyond scope of this video. As you can see for my investment of $437, I got right away 0.001 JOE tokens. When I accumilate few JOE token, I will claim this JOE tokens. TraderJoe tells me my share of the pool is 0.00183% give total liquidity is 23 Million Dollars. You can allways to go to the farm tab and click on My Farms to see your liquidity provider pools.
Risk & Rewards in TraderJoe StableCoin LP Pair
The reason I pick a Stable Coin Liquidity pool because crypto currency is risk of going more down during this current down turn. I want to be able to multiple my money slowly even in a down turn. I will switch to AVAX-USDC pool when market is starting to pick up. I have no risk by staking on both stable coin pool other than smart contract exploits on TraderJoe exchange.
Happy Crypto! 😊