Auto-compounders sell your JOE rewards from yield farming to increase your LP positions. If you're farming with AVAX-USDT, for example, you can gain more AVAX-USDT. It's attractive because the yields can appear large, but it can also mean that you miss out on profits if JOE increases in price.
Instead, you can stake your JOE tokens to xJOE, which has no impermanent loss (IL), and maximizes your profits when JOE tokens go up.
Holding xJOE will give you more JOE over time
How does it work?
xJOE is the main staking mechanism on the Trader Joe ecosystem. When you stake your JOE, you effectively exchange your JOE for xJOE. Over time, you’ll always earn more JOE by holding xJOE tokens.
This is because every swap on Trader Joe, a 0.05% fee is charged and sent to the xJOE pool. This fee is used to buy back JOE tokens periodically (currently, buy-backs happen every 2 days). So when you exchange your xJOE for JOE, you'll get more JOE than what you started with.
No Impermanent Loss
Maximize your profits when JOE tokens go up
A 0.05% trading fee is used to periodically buy back JOE tokens. When you exchange your xJOE for JOE, you'll receive more JOE than you started with.
If you deposit your xJOE into the Farm, you will receive both Farm the xJOE Farm yield and the xJOE Staking yield. Add both together to get your forecast yield.
How to Stake
Connect and confirm your wallet.
Navigate to the Trader Joe dashboard and select the Stake tab.
On the left hand side, enter the desired amount of JOE tokens and select ‘Approve’.
You will receive xJOE tokens in your wallet.
In the central panel you will see ‘XJOE Balance’ and ‘Staked JOE’.
XJOE Balance: Your staked deposit.
Staked Joe: Staked deposit + share of the fees.
You can see how this is calculated by viewing the stadium box beneath ‘Stake Joe’.
Want to view Analytics for Staking? Easy - Click on the 'View Stats' button.
When you deposit your xJOE into the Farm, you will not see your JOE staked on the staking page
How to Unstake
Before you can unstake, if you have deposited your xJOE into the Farm, you must firstly withdraw xJOE from the Farm before you can unstake
Simply select 'Unstake' on the right-hand side.
Enter the amount you wish to unstake in the balance input and select ‘Approve’.
You will receive your original staked JOE tokens, plus your share of JOE token rewards from fees.