Tron Ecosystem - Steemit Crypto Academy Season 4 - Homework Post for Task 1

in SteemitCryptoAcademy3 years ago

Assalam u Alaikum


From Canva using this image

Warm greetings to all steemians, hope you all are doing good! My name is Zaid and this is my homework post for professor @sapwood. Making this post has been very beneficial for me, I learned many basic things from it. Let's check out what I learned from Professor's lecture so far.

The question is given as

What are the different dApps in the Tron ecosystem are you familiar with? What are the uses of DeFi applications like Justswap, JustLend, and Sun.io? How can you optimize mining rewards by staking TRX and other TRC20 tokens in Sun.io? Examples?

Since the initiation of TRON in 2017, it has been one of the fastest-growing projects in the archives of cryptocurrencies. It is due to the exceptional ambitions and schemes that they have set for the project. Since the first question is how many D-apps are in the TRON ecosystem that I'm familiar with. I want to start by mentioning how I got to know about TRON itself.

I found about TRON recently this year when a buyer wanted to send his assets through TRC20. It was the first time I heard about the tokens of the TRON ecosystem. I'm not that much involved in trading. I spent some time researching its history and enthusiast interest regarding the currency. I got to know about the fact that it has a competitively less amount of transaction fees, and that was the sole reason that got my attention to this cryptocurrency. Enough about my introduction with TRON. Without further ado, let's dive into the familiarity that I have with the D-apps of the TRON ecosystem.

I know some of the D-app projects of the TRON environment, first of them is widely known as Steemit, second, being one of the most popular decentralized exchanges recognized as Poloniex.

Steemit

I got acquainted with this platform about four months ago in a gathering with my friends who introduced me to this D-app. After some research, I gathered information regarding the validity and legitimacy of the application. I can put Steemit into words by defining it as a blogging site that aims and endeavors to reward its users, both the authors and the curators, with the STEEM blockchain stable-coin known as Steem dollars, which can be converted into steem crypto-coins that is enlisted in many popular and legit exchanges. Definitions aside, what I have noticed during my time on Steemit is that it is now more than just a blogging site. It contains a wide variety of topics and one with respective knowledge about that topics is rewarded. I have seen first-hand the treasure of knowledge lies in the platform, amazing works of art, astonishing photographs, astounding football insiders news, and many more.

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Steemit Inc. surely came up with the most unique and idiosyncratic ideas regarding the assembly of this blockchain-based micro-blogging website. Various platforms have mimicked this same infrastructure of the product, or as I've come to know about them, as Steem was one of the first blockchains that introduced the idea of compensating its user for the posts they publish on this site.

Poloniex

Anyone who is even nearly involved in the trading of cryptocurrencies must have heard about one of the famous exchange markets known as "Poloniex". The essential discussion of "which exchange market is better?" is an imperative thing that has taken place since the inception of exchanges. Poloniex and Binance have been the giants for several years now. Even though Binance has surpassed Poloniex, but it also has its fair share of benefits that makes it exceptional from others. The prominent advantage being the lowest entry barriers one has to overcome and the varying transaction fees based on the individual trading volume.

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One of the fascinating things I came to know about from the @sapwood lecture is the pre-eminent feature that Poloniex holds over Binance, and that is the difference in the minimum trading amount. In Binance, you must have 10 USDT to trade. Poloniex has lowered the restriction to only 1 USDT. It is a significant deciding factor when it comes to determining the exchange you want to use for respective trades.

De-Fi can be elucidated as financial tools built on the respective blockchains. It aimed to provide enhanced and advanced features to the blockchain. Decentralized Finance applications like "JustSwap" and "JustLend" also comes under the umbrella of empowering the people of the respective blockchain to easily borrow, lend, and transfer their assets. Since the inception of De-Fi, it has created wide and varied opportunities for users. Blockchains are now evolving themselves to do more than just transact out money.

JustSwap

JustSwap was created as a way to exchange TRC20 tokens with the tokens of the same family. Not just it lets you exchange tokens, but one can also get rewarded by adding more liquidity. Liquidity providers, also known as "Market makers" can use their assets to provide liquidity to the liquidity pool so that the de-fi applications can work purely in a decentralized way. The market makers get rewards proportional to the amount of their contribution in the liquidity pool from the 0.3% handling fees acquired from traders.


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JustSwap works with smart contracts that essentially control the maintenance of prices in the application. It has made the conversion of one token for another extremely simple, easy, and advanced. JustSwap will issue you liquidity tokens if one provides liquidity to the token pair. The issued liquidity tokens can be staked on the SUN platform, and one can receive the rewards based on pre-determined criteria's which I will discuss in the SUN section.

JustLend

JustLend is a financial tool built upon the TRON blockchain that aims to provide lending and borrowing opportunities for traders. It was created as a way for the user to keep growing the assets. The concept of lending and borrowing took off in massive amounts during the pandemic where many traders got involved in the lending services. JustLend is the first lending system in the TRON ecosystem that, with the help of smart contracts, manages the price of interest amount based on demand and supply of the respective crypto tokens.

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JustLend has been created in a way to ensure a unique and pure decentralization system. JustLend is different from other protocols as the borrower does not have to bargain with the suppliers for setting the prices. JustLend can easily take care of it by automatically matching it with perfect orders as long as the liquidity is available in the pool. The process has been explained in detail in JustLend whitepaper.

Sun.io

One of the famous De-Fi applications known as SUN is the first TRON platform that supports stake and liquidity mining. A user must have gone through the phase to understand the difference between standard or regular mining and stake or liquidity mining. The key difference between both of those is that, in standard mining, miners of the respective blockchain compete to solve the puzzle to get the hash of the new block and they get rewarded, and on other hand, stakeholders stake their assets in a respective blockchain to help increase the liquidity of the coin and get rewarded accordingly, both methods have fair shares of advantages and disadvantages, but I am not going to that.

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SUN currently allows to stake in four liquidity and staking pools, that is 3 pool LP, SUN-TRX LP, and USDC LP, and also SUN locking and staking. The reward will be based on transaction fees from the tokens one staked and from the penalties of the stakeholders who exited the stake early. SUN is a great way actually to keep the liquidity of the TRON tokens stable and get rewards.

How to stake tokens to optimize rewards

I have briefly discussed what is staking and how one can earn rewards and on what basis in the above section. Below are the steps that one has to follow to stake their token in the pool.

  • Go to this link to enter the staking section. One must have its wallet connected in order to stake the tokens. There will be liquidity pools listed below. There are three given as of right now.


Screenshot from the source

  • If one wants to stake (or lock ) the sun token, the method is pretty straightforward. On the website,




Screenshot from phase 1 of sun.io

Stake
Lock
In staking, one can quit from liquidity pool any time without any restrictions and limitations.If one stake and locks the token, one can not quit from liquidity pool until the specified lock time is over
It has less APY as one can easily quit It has relatively more APY because there is no quitting
Click on the stake option
Click on the Lock option
Enter the amount and deposit
Enter the amount, select expiry date and deposit
All screenshots attached in the table taken from sun.io

Staking only sun tokens is a safe way as it will not give one, what is called a financial threat, therefore it also has fewer APY's than other liquidity alternatives. If one wants to stake with greater APY's, they should opt for liquidity pairs such as TRX-SUN LP, it is riskier than staking just sun token but is also more beneficial. As the phase 2 of governance mining has been started the previous month, the SUN-TRX LP currently has more APY than the other listed. Here is the method that one can involve in liquidity mining

  • One must have both TRX and SUN tokens, if one does not have the other pair, you can easily swap the former for later from JustSwap.


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  • Now that one has both tokens, move to the pool section in JustSwap and Click on "Add Liquidity".


image.png
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  • Select the tokens as SUN and TRX from "select token". Enter the amount and click on deposit. The deposition will issue you liquidity pools.


image.png
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  • Come again to sun.io, go to SUN-TRX LP, click on the stake button.



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  • There will be the number of liquidity tokens one got issued will be showing. Enter the amount and click on deposit.



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Congratulations! the staking has been successful.

Only those blockchains have any future who are putting all the efforts they can to stabilize the blockchain and TRON surely comes in one of them. It has currently more than 1400 decentralized applications running with over 20 million dollars worth of daily transactions. The numbers, in particular, can help one understand the scope and future of the project.

divider source from this respective user

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