Blockchain and Cryptocurrency Beginner - JustSwap: Tokens Supported by JustSwap and How the Price of A Just Swap Token Is Determined
Justswap tokens
The JustSwap platform supports a number of Tron-based TRC-20 tokens. The default list of the supported tron-based TRC-20 tokens on the justswap platform are; TRX, USDC, SUN, NFT, BTC, WBTC, ETH, WETH, WBTT, WTRX, JST, WIN, DICE, LIVE, USDT, TUSD, USDJ, LTC, HT. Also, users can add tokens that are not on the list.
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How the price of a JustSwap token is determined
The way price is determined on the justswap protocol is one of the main factors that differentiates the Justswap DEX protocol from the centralized exchanges. On Justswap, there are no order book that determines the price of the tokens. Instead of order book, Justswap determines the price of the tokens by dividing the size of the two sides of the LP of the assets. This is gotten from the number of tokens deposited in the liquidity pool. It makes use of smart contract to maintain a constant function which is;
X * Y = K
Where;
X = Token A
Y = Token B
K = Constant
Each swap transactions occurs by replacing some of the tokens being swapped with a certain number of the other token in the pool. The constant K remains unchanged. The tokens balance becomes updated and causes a change in price.
Where;
Token A = TRX
Token B = TRC-20 token
From the illustration, we can see the swap transaction where a user buys Token B with Token A. This swap transaction causes the supply of Token A to increase and the supply of Token B to decrease. There is an increase in price of Token B. For instance, if a user makes use of the justswap protocol to swap TRC-20 token with TRX, then the supply of TRC-20 token in the pool would decrease and the supply of TRX would increase in the pool. This causes the increase in price of TRC-20. Also, if the user makes use of justswap to swap TRX with TRC-20, then the supply of TRC-20 in the pool would increase and the supply of TRX would decrease in the pool. This causes the price of Token B to decrease.
With the look of things, I am so sure that in days to come, the value of the justswap token will definitely increases as we continue to see more usage of it. I just hope it can really be sustained for so long as that is the most important