[JustSwap]- Crypto Academy S4W5 - Homework Post for professor [@kouba01]
Hello everyone. A very warm return to week 5 of CryptoAcademy Season 4. This week we learned about the JustSwap Platform from professor @kouba01. This is my assignment post.
Q1 Present the Just Swap platform in your own way, demonstrating its importance within the Tron ecosystem blockchain.
JustSwap is a Decentralized Exchange Platform (DEX) built on the Tron Ecosystem.
JustSwap enables its users to trade between the TRC-20 tokens and the exchange of TRC-20 tokens with the TRX, which can be done instantaneously. The JustSwap Platform consists of a Liquidity Protocol called the Automated Market Maker protocol which utilizes smart contracts to create liquidity pools in which the users on this platform lock their assets on the platform through which they provide liquidity. This is a Unique feature of the JustSwap exchange. If you think of it, by providing liquidity to the platform, there will never be any delay on the platform for the trades to take place and all the orders will be filled up immediately. If there's a disagreement between two traders, there's an Arbitrator who settles this disagreement.
If you're providing liquidity, you'll be granted some rewards which come from the transaction fees of the trades on this platform. The transaction fee for exchanging TRC-20 tokens is 0.3% which are directly rewarded to the liquidity providers without the involvement of any intermediaries
The true essence of decentralization is found on the JustSwap Platform. The first thing is that a swap of tokens between two users does not require any third-party involvements which makes the process quicker, safer, and more secure.
Alongside this feature, due to the decentralized nature of the platform, JustSwap ensures complete Transparency as the information of all the transactions carried, are shared by the users, which makes it difficult for fraudulent activities to take place.
JustSwap has given a tough competition to UniSwap which is built on the Ethereum Ecosystem and Pancakeswap which is built on BSC, since its origination. On both these mentioned platforms the trading fees were transferred to the protocol whereas on JustSwap, as mentioned, the trading fees are transferred to the liquidity providers.
We are all aware of the Ethereum inflated Gas Prices, which made it difficult for traders to effectively make use of these platforms. In these circumstances, Tron came up with JustSwap which has considerably very low trading fees.
Q2 What tokens does JustSwap support trading? How is the price of a JustSwap token determined (how it works)? Use an illustration to explain it. (screenshot required)
The JustSwap Platform enables its users to do trading between TRX and TRC-20 tokens. This had made things easy for traders all over the world as JustSwap gives you the opportunity of trading TRC-20 tokens and TRX in minimal fees
The illustration above shows the tokens supported by the JustSwap Default Token List which include: WBTT, WTRX, JST, WIN, USDT, USDJ, LTC, TUSD, WBTC, ETH, WETH, HT.
Price Determination on JustSwap
The price Determination on JustSwap is done by using Constant Function smart contracts.
- Price = X * Y = K
In this formula,
X = TRC-20 token
Y = TRX token
K = Constant
Elaboration
As we know when trading on JustSwap, we exchange the TRC-20 tokens and TRX token. In the liquidity pool, the price is determined by the availability of the tokens present in the pool. When one token is exchanged with another, the result of this exchange would always be constant(as shown in the formula)
To keep the constant value, the values of tokens are changed due to which the prices are changed as well.
For Example there are two tokens; Token X (TRC-20 token) and Token Y (TRX) involved in a trade. To have the constant value of this trade there are two possibilities of how this would happen.
- When the value of Token X (TRC-20) increases, to keep the K constant, the value of Token Y (TRX) will automatically decrease.
- When the value of Token Y (TRX) increases, to keep the K constant, the value of Token X (TRC-20) will decrease.
With this, the tokens' values will change by keeping a constant product
Illustration
This is my self made illustration to elaborate the price Determination on JustSwap
Q3 How do I connect my wallet to JustSwap.io? Is there a mobile app? (Screenshots needed)
This is a very simple task for users who have downloaded the Tronlink Wallet
Lets see how to connect your wallet to JustSwap:
Log in to your Tronlink wallet
Visit justswap
click on connect wallet as shown in the screenshot below
- you will see a pop-up in which you can clearly see the Tronlink Wallet option. Click on it
- after clicking on the option, there will be an initializing, and after that, a pop-up of Tronlink wallet will open.
- Click on confirm and your wallet will be connected. You can confirm it from the justswap site.
Mobile Application
JustSwap, for now, does not have any mobile Applications but it can be accessed from the Tronlink Wallet Mobile Application.
- Login to your Tronlik application and then click on the Discover option.
- after that click on JustSwap and you'll be redirected to the JustSwap home screen.
Q4 Include a real example of your interaction with Just Swap, demonstrate how you can trade on the platform. (screenshots required)
Once you have connected your Tronlink Wallet to JustSwap, trading gets easy for you. Let's demonstrate on how to trade on JustSwap
- First, click on swap and then choose the assets you want to exchange.
- For the next step, select the token you want to exchange and then select the next token that you want to be exchanged.
There's a list of tokens from which you can choose.
- I chose the trading pair of TRX and USDT and then put 10 TRX to be exchanged
I will receive 0.9944147 USDT and the transaction fee is 0.03
Click on swap to continue.
- it will ask for the confirmation of swap
- after you click on confirm swap a popup will appear in which you will have to sign.
- once you've signed the transaction, you will get the confirmation message of the swap.
All screenshots were taken from justswap
Q5 Include a real example of your interaction with Just Swap, explain How to add liquidity to JustSwap. (screenshot required)
Liquidity on JustSwap
By adding liquidity on JustSwap you can earn rewards which is an excellent feature of this platform. Lets see how to add liquidity on JustSwap.
- Click on Pool on the homepage of justswap and then on Add Liquidity
- After that, click on the pair that you want to provide liquidity. I chose the TRX/USDT pair. After writing in the amount you want to provide, the corresponding amount of USDT was provided. After that Click on supply
- After clicking on Supply a, pop up will appear in which you have to Sign to Approve
- After that click in Confirm Supply
- Again, an extension will appear and you will to Sign for confirmation.
After signing, the Liquidity will be added successfully.
Now that I have added liquidity to the pool, I'll be getting rewarded from the transaction fees.
Ps: all screenshots are taken from justswap
JustSwap is a decentralized exchange platform built on the Tron Ecosystem which has enabled its users with amazing benefits. You can get rewards by providing liquidity to the platform. There are instant trades available without any difficulties.
It can be used by connecting it with your TronLink wallet which can be done on both, chrome extension as well as the mobile phone app.
This was an interesting lecture professor @kouba01 in which we extensively learned about JustSwap. Hope you have a good read.
Thank you.
Ps: all screenshots were taken from justswap and my Tronlink wallet.
Regards,
@huzaifanaveed1
Hello @huzaifanaveed1,
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|9.5/10 rating, according to the following scale:
My review :
Excellent content, in which you succeeded in presenting an organized and useful work. Only one note I want to bring to you is:
Thanks again for your effort, and we look forward to reading your next work.
Sincerely,@kouba01
Thank you professor @kouba01 for your kind remarks. I wasn't able to present an illustration because the application wasn't being functional, so I came up with the idea of presenting it in this way. Nonetheless, thank you for your review.
Good Day To You.