How to Farm on Trader Joe?
To position Islander as a learn-to-earn & affiliate marketing platform promoting crypto adoption, Islander is not only a place where retail investors can find and learn from potential projects but also provides informative news. Currently, our primary goal is to serve as a springboard for the top initiatives in the Avalanche ecosystem. So, with this “Avalanche How-to” series, we will provide you with the fundamentals of this potential ecosystem.
The next post in our “Avalanche How To’’ series is about Farming on Trader Joe.
But first of all, what is Farming?
Farming, also known as Yield Farming, is a term that refers to users trying to generate as much profit as possible from their crypto assets by providing liquidity to DeFi protocols.
In the concept of Yield Farming, Liquidity Providers will supply a pair of tokens in the Liquidity Pool and receive a special token call as an LP token in return, to know how much liquidity they have added to the pool. A liquidity pool is simply a smart contract that contains tokens in it. These pools allow users to borrow, lend or trade between tokens. By doing so, they are going to earn passive income from transaction fees, and interest from lenders. Users can even stake Liquidity Pool tokens to earn extra yield. Extra yield is frequently distributed by local tokens of DeFi protocols.
In Trader Joe, you can also earn extra returns by yield farming. More interesting, Trader Joe often gives users farms with double rewards. You can follow Trader Joe for the earliest updates on upcoming double reward farms to join and maximize your profit.
If you don’t know how to farm at Trader Joe, please follow the below instruction: