JustSwap - Crypto Academy / S4W5 - Homework Post for @kouba01
Good day everyone. Thanks to @kouba01 for such a wonderful lecture on JustSwap. I will be doing the homework from the lecture, so sit back and look for somewhere quite quiet and comfortable as you read through this amazing article I created just for you(😉). Let's get started!!!
Question 1: Present the Just Swap platform in your own way, demonstrating its importance within the Tron ecosystem blockchain.
From my very own understanding, JustSwap is a decentralized exchange platform built on the TRON blockchain. JustSwap enable users of it's platform to trade TRC-20 tokens. JustSwap was the first decentralized finance DApp created in the TRON blockchain by JUST, a platform that aims provide all-in-one financial solutions to its users. Other platforms which are created by JUST include, JustStable, JustLend and JustCryptos.
JustSwap is the leading DApp for the Tron ecosystem as at the moment of writing this article. JustSwap paved the pathway for Decentralized finance in the Tron Blockchain, which saw the introduction of some unique DeFi projects such as Pearl.Finance, SalmonSwap and others.
Importance Of JustSwap Within TRON Ecosystem Blockcahin
JustSwap is very important within the TRON ecosystem blockchain as it provides various features which has attracted many users to TRON blockchain and these features are;
Highly Decentralized
Unlimited Liquidity
Fast Trade Execution
Low Transaction Fees
Passive Income Earnings
Highly Decentralized: JustSwap is highly decentralized and this has encouraged a lot users to start making use of Tron Blockchain. There's no central server, as the platform is run by multiple nodes from miners across the globe, hence, no more issues like server down, which is experienced in centralized exchange platforms. The decentralization of JustSwap has greatly impacted the Tron ecosystem blockchain positively.
Unlimited Liquidity: JustSwap has infinite liquidity which is something traders love to see from a platform, as traders will know they can buy and sell whatever volume they want at any given time.
Fast Trade Execution: Trade execution on JustSwap is instant, as soon as you make a trade, your trade is executed immediately. As a result of the limitless liquidity which is provided in the platform, traders don't have to wait for their trade orders to be filled, as they would be filled instantly.
Low Transaction Fees: JustSwap provides very low transaction fees which attracts lots of users to the platform, hence to Tron blockchain. The trading fees charged in JustSwap is as low as 0.3%, which is very low when compared to platforms such as Uniswap, Poocoin Exchange, and others.
Passive Income Earnings: Liquidity Providers(LP) do earn by just providing liquidity to JustSwap. The 0.3% trading fees charged, are distributed among the Liquidity Providers. This is a source of passive income for some users of the JustSwap platform, as they easily provide liquidity to the platform and earn passively from it.
All of the features of JustSwap listed above, has impacted positively to the Tron Ecosystem blockchain as a whole, thus, making JustSwap very important to the Tron Blockchain.
Question 2: What tokens does JustSwap support trading? How is the price of a JustSwap token determined (how it works)?
JustSwap supports mainly TRC-20 tokens and some major cryptocurrency tokens such as BTC, ETH, LTC and USDT. Below are the tokens mainly traded on JustSwap.
| Tokens Traded On JustSwap | Tokens Traded On JustSwap |
|---|---|
| LIVE | DICE |
| WIN | JST |
| USDJ | TUSD |
| HT | LTC |
| NFT | WBTT |
| SUN | SUNOLD |
| ETH | WETH |
| BTC | WBTC |
| TRX | WTRX |
| USDC |
Those are the tokens that are trading on JustSwap as at the moment of writing this article.
How Are The Prices Of Tokens Determined On JustSwap?
Since there's no centralized body that controls the prices of tokens listed on JustSwap, how are prices determined? It's quite simple, JustSwap makes use of Automated Liquidity Supplying Protocol, which uses the Constant Function to regulate the prices of tokens. The constant function is;
where;
X = First Token pair
Y = Second Token pair
K = Constant Value
What this constant function does, is that, it regulate the price of tokens based on the pool size of the tokens been traded. It follows the law of Demand and Supply, which implies, that whenever demand is more than supply, there's increase in price and whenever supply is more than demand, there's a decrease in price. Hence, the Automated Liquidity Supplying Protocol, comes in, to determine the price depending on the order(demand) and liquidity pool(supply) of the tokens been traded.
To further explain this, I will show you an illustration of TRX/USDT price impact on JustSwap.
Pay attention to number of TRX that makes 1 USDT. It is currently about 10.48 TRX that makes a 1 USDT when you above to swap 10 TRX for USDT.
But if I should increase my demand for USDT, using TRX, that will definitely increase the number of TRX that gives 1 USDT. Reason for this, is that, demand for USDT has increase the value for USDT, and reduce the value for TRX.
Look at the price impact above when I tried to swap 1,000,000,000 TRX for USDT. It has a massive price impact of -48.3%. And also you can see that because of the negative price impact that such transaction will have on TRX tokens, 20.24 TRX makes 1 USDT, instead of 10.48 TRX.
Question 3: How do I connect my wallet to JustSwap.io? Is there a mobile app?
In order to be able to connect your wallet to JustSwap, you firstly need a wallet. Just like how you need either a Metamask wallet or a Binance Smart Chain Wallet to gain access to PancakeSwap, same applies here with JustSwap.
The mainly used wallet in the Tron Blockchain is TronLink wallet. Click on the official website of TronLink wallet in order to create a wallet for yourself, by clicking here.
When you have arrived at the official front page of the TronLink wallet site, you will have different options to download the wallet depending on which device you are using. It's available on both Android and IOS devices, desktop devices as browsers extensions and others. For this article I will be making use of the Chrome browser extension, because I'm using a desktop device.
After you have successfully added the extension to your chrome browser, it's time to set up your TronLink Wallet.
- Create a new wallet
- Choose a Wallet name
- Write down your mnemonic phrase and store somewhere very safe.
- Wallet all set up.
Congrats, you have successfully set your TronLink Wallet.
Now, we have to connect our just created TronLink Wallet to JustSwap, by visiting the official site of JustSwap, by clicking here.
When you have arrive at the site, at the top left corner of the screen you a phrase which says "Connect to Wallet", click on it.
As soon as you click on it, a pop up will appear at the center of your screen, click on TronLink Wallet.
After you click on it, the TronLink Wallet extension will pop up on your screen, Click on Connect.
Boom!!! You have successfully connected your TronLink Wallet to JustSwap.
Is There A Mobile App For JustSwap?
There is currently no mobile application for JustSwap but we can use the TronLink Wallet on Android and IOS devices and browse through the DApps section to get to JustSwap platform on our mobile devices. In other words, we can access JustSwap platform using TronLink Wallet on our mobile devices, but there is no mobile application for JustSwap.
Question 4: Include a real example of your interaction with Just Swap, demonstrate how you can trade on the platform.
As you can see from the image above, I currently don't have TRX tokens to perform any trading activity. In order to have some TRX tokens, I had to copy my TronLink Wallet address and sent some TRX tokens from my Binance wallet to my newly created TronLink Wallet.
Now, I have some TRX, so I can trade now. In order to trade, you need to search for the token you want to trade your TRX for. For this article I will be using JST token.
After you have chosen your desire token, now input the amount of TRX you want to trade for JST tokens. For this article I'm using 60 TRX. After that, click on "Swap".
The summary of your transaction will be shown to you, if you are okay with all of the details, click on "Confirm Swap".
As soon as you click on "Confirm Swap", your TronLink Wallet will pop up for you to sign the transaction, so it can be confirmed and broadcasted to the blockchain. Click on "Sign".
Boom!!! I have successfully traded 60 TRX for 76.2 JST tokens
You can check your TronLink Wallet to further confirm that the trade was successfully.
And that's how you trade on JustSwap platform.
Question 5: Include a real example of your interaction with Just Swap, explain How to add liquidity to JustSwap.
By adding liquidity to JustSwap, you will be earning 0.3% of trading fees which will be charged on every trading transactions related to the token pairs you added liquidity to.
Now, how do we add liquidity in JustSwap? First, visit JustSwap website, by clicking here. When you arrive at the home page, click on Pool as shown below.
When you click on Pool, you will then see "Add Liquidity", click on it.
You can choose two token pairs of your chosen. For me, I will be using TRX/JST. And I will be adding 20 TRX liquidity which will result to me also adding 25.5 JST liquidity automatically. Then click on "Supply" after you are done inputting your desired liquidity on your token pairs.
Your TronLink Wallet extension will pop up, requesting you to Sign the transaction, in order to have approve the transaction. So, click on "Sign to Approve".
You will then see the your pool tokens, if you are okay with it, click on "Confirm Supply".
Your TronLink Wallet extension will pop up again, requesting you sign the transaction. Click on "Sign".
Boom!!! you have added liquidity to the JustSwap platform.
You can also confirm it on your TronLink Wallet as seen below.
And that's how you add liquidity in JustSwap platform.
Conclusion
The JustSwap platform is very important to the Tron Blockchain, as almost every Tron users make use of the platform to trade, stake tokens and add liquidity to the platform in order to earn some cool passive income. The charges are very low, I traded on the platform, hence, from experience, I can confidently say, it has very low transaction fees, which is a huge plus to the platform and Tron blockchain in general. The speed of trade execution is pretty high and the decentralized nature of the platform makes it very trusting for users. In all, JustSwap platform is truly a remarkable decentralized finance platform on Tron Blockchain and with time, it might become as popular as PancakeSwap and UniSwap.
Special thanks to you, @kouba01, for organizing this amazing class and giving this nice assignment, as it has helped me in the understanding of JustSwap.
Hello @menoski,
Thank you for participating in the 5th Week Crypto Course in its 4th season and for your efforts to complete the suggested tasks, you deserve a Total|8.5/10 rating, according to the following scale:
My review :
Good content in which you tried to implement what was asked of you to explain it with distinction. Here are some notes I give you.
You should have explained more how to use the platform on the mobile phone.
In your explanation of how JustSwap works, you are asked to prepare an illustration.
Thanks again for your effort, and we look forward to reading your next work.
Sincerely,@kouba01
Thanks for review and feedback @kouba01