Progressively, blockcain technology is becoming a commonplace concept as this innovation has gained so much publicity in the past couple of years. The idea of digital currencies has been massively accepted by many and this is one factor that has pushed the industry up greatly.
Along with the traditional financial functions of this industry, other interesting services and features are being established especially in the form of dApps through smart contracts which has added so much gloss to this already booming sector.
I will be exploring the aspect of dApps by answering the assignment questions on the topic as excellently taught by Prof. @wahyunahrul.
Look for 2 similar dApps and do a detailed fundamental analysis and compare the two dApps and explain the results of your analysis. (Screenshots required).
I will be exploring PancakeSWAP on Binance Smart Chain and JustSwap on Tron Blockcain, both dApps are decentralized finance (deFi) projects on these respective blockcains and they have quite similar features. Their major and primary function is the exchange of one crytopcurrency for another.
Brief Exploration of PancakeSwap on DappRadar
I first logged on to the site and landed on the cover page.
From here, I located the menu button from where I tapped on the ranking option to check out the dApp.
PancakeSwap at this time ranked at number one
as at the time of writing this task.
I then tapped on the dApp itself and I was taken to the page having all the details of the dApp. This included the dApp's token price, trading volume, market capitalization for some of the smart contracts that were being tracked.
I then proceeded to open the dApp which took me to the landing page.
Highlight of PancakeSwap
PancakeSwap DeFi is a form or automated market maker (AMM). Meaning that at any time someone wishes to transact with the native token of the DeFi, there are always liquidity available to match the market orders, in this way, ensuring large volume of transaction with no order book present.
This capability is made possible by users of the platform contributing their tokens to a liquidity pool from which they earn interest in form of liquidity provided tokens (LP). The project is an open-source platform implying that the public can access any information they wish from the platform.
Using this dApp, one can exchange and swap between Binance smart chain tokens (BEP-20). PancakeSwap is a prominent DeFi in the cryptocurrency ecosystem due to some lovely unique attributes such as the presence of a massive liquidity and heavy patronage.
The DeFi has some attractive aspects, like the extremely low transaction fees and rapid confirmation duration which ensures that trades are executed quickly.
Authors, Early Begining and Funding
The platform was officially launched in September 2020. The platform's founder's identity are hidden and the team administering it, is an anonymous team who are rather referred to as chefs. The platform is operated by PancakeSwap treasury, with funds generated from transactions performed. A total of 15% of the generated funds from fees is used for this funding.
PancakeSwap Token
The native token developed for the platform is called CAKE. Currently, it is valued at $18.27 and it is listed on 390,137 watchlists. It is ranked at #42 by CoinMarketCap.
Some uses of the token include: yield farming, staking, participating in Lottery, voting on governance proposals and so on.
System of Governance
The platform is partially governed by the community with CAKE holders using PancakeSwap's native voting portal to vote on governance proposals. These proposals can be sponsored by the team of by the users.
There are a couple of wonderful features in this dApp. I will go ahead to discuss them.
Exchange
This is the defining feature for the platform. From this point, users can exchange one BEP-20 for another. Here you will find spaces for typing in the swap amount. One can also find where to select the types of tokens as well as other details.
Liquidity
This is where users contribute their tokens to create liquidity. Users are at liberty to withdraw their deposits at any time they choose.
Initial Farm Offerings
This gives user the opportunity to acquire tokens of projects that built on the smart chain before the official launch and and public release of the tokens. This is done using liquidity provider tokens which will have part of it burnt as a means of infusing deflationary measures. Liquidity provider tokens (LP) are reward units gotten from taking part in liquidity pools.
Yield Farms and Staking
This is an additional income feature where users deposit their tokens in yield Farms and from here, they earn CAKE as rewards. It is a staking process where users stake their tokens in return for interest.
Syrup Pools
This pool accepts different BEP- 20 as staking asset. It is a staking system similar to the yield farms. However, here there are other reward tokens offered other than CAKE.
Lottery
This is an amazing feature of this dApp. In the lottery feature, users try their luck in winning tokens buy purchasing tickets and competing in a lottery. A user can purchase more than one ticket for a price which is equivalent to 10 CAKE. Purchase of more tickets attract discount.
Winning is by matching the numbers on the winning ticket which earns one a portion of the price pool. Lottery session last for 6 hour period. All tickets carry a random combination of four numbers between 1 and 14. The winning prize can be in CAKE or non-fungible tokens.
Prediction Markets
This feature is a betting system on the platform. A bet is placed about the potential change in price of Binance Coin (BNB) after every 5 minutes. The bet amount from different users participating is collected together. After the 5 minutes have elapsed and the outcome is gotten, the staked amount is shared to those with correct predictions after the bet. Wrong prediction implies forfeiture of bet amount and loss.
Non-Fungible Token Collectibles
This feature was introduced in February 2011. In this part, Bunny NFTs are made available for purchase. From purchasing these tokens, a user can create a personalized NFTs profile picture. Having complete profiles qaulifies users to join team where they compete in team events to earn rewards.
Upgrade and Updates
There have been some upgrades in this project through which, new products, functions and features have been introduced. In April, 2021, the dApp was ungraded to V2 version.
There are some projects and features that are proposed to be launched on the platform. Example will include: introducing fixed-term staking products, creating lending & borrowing features, allowing users to earn units of NFTs by completing tasks and moving to higher levels.
All images are gotten from the official page of the PancakeSwap DeFi Platform
This is a dApp which is a DeFi product built on Tron Blockcain. Is it the first of deFi built on this blockcain. It is a TRON-based exchange protocol where exchanges between TRC20 tokens ( these are smart contract tokens in the Tron Blockcain) are performed.
JustSwap makes use of an automated market maker protocol to ensure liquidity. Users take part in supplying liquidity and they earn from a percentage of the transaction fees generated.
Features of the dApp
The JustSwap DeFi project also provides financial services for users within the Tron Blockcain ecosystem using tokens developed on it.. There are a number of interesting functionalities like, liquidity mining, trading, staking and swapping of tokens. Through these features, users can generate income for themselves.
SWAP
This is the first feature displayed on the opening page. With this, a user can exchange between the different tokens on the Tron Blockcain. Here, one gets to type in the amount, select the tokens and input other details.
Pool Interface
In this interface, and individual can contribute his tokens to the liquidity pool and get to earn interest accrued from the transaction fees which will be calculated based on the amount of tokens contributed.
Liquidity Pool
It is in this interface that a user can participate in mining liquidity by staking their assets. The total staked assets is shown. TRON token is given as reward. There is a list of different assets pairs and the earning coefficient for a user to select from
Scan
Through this section, a user can get details about an address by pasting the address in the space provided. The liquidity chart and and volume chart for the platform are also displayed here.
SUNOLD Swap
This section is to enable holders of the old SUN token to swap them with the New SUN tokens as the project has undergone a redenomination.
WTRX and WBTT Exchange Portals
Other tools still on the dApp are the WTRX and WBTT exchange portals which gives an interface for swapping between TRON and these assets. These two are also native assets on the Tron Blockcain.
All images and screenshots were taken from the Tron Wallet extension of the dApp.
Comparison of PancakeSwap and JustSwap
These two dApps are very popular on their individual blockchains, they have so much similarities. They two are primary built for carrying out exchanges and swap between their native tokens that is TRC-20 tokens and BEP-20 tokens for JustSwap and PancakeSwap respectively.
These two are equally structured using the automated market maker protocol which ensures enduring stability for transactions. These involves the operation of liquidity pools and liquidity mining which are investment and earning options for users.
However, these two have some very distinct features and characteristics. PancakeSwap has its own unique token called CAKE which JustSwap does not have.
There is a lottery and prediction market features on PancakeSwap where users have more opportunities to earn income and invest. These offer attractive rewards and returns. These are not cannot be found in JustSwap.
The non-fungible tokens aspect of PancakeSwap is also worth mentioning here. The NFTs sub-sector in the crytopcurrency industry seems to be the most attractive one at the moment with very high market shares and population. The value of many NFTs are quite very high and so many people have reaped tremendous gains and income from dealing on NFTs.
PancakeSwap offers this feature which allows users to own NFTs. JustSwap does not.
Users on PancakeSwap have the opportunity to participate in initial farm offerings where they can have ownership of a token even before it is officially launched. They can take part in a variety of liquidity pools like the syrup pools, yield farms. These aspects are not present with JustSwap.
Transactions on JustSwap attract lower fees compared to those on PancakeSwap.
Result of Analysis and Comparison
From careful study and research on these two dApps, I am certain that these are two very interesting projects. The developers have taken time to build very formidable and functional dApps.
However, if I were to make a choice among the two, I would most preferably go for PancakeSwap. The project has so much to offer. It has some really better functionalities than JustSwap. Its investment and earning opportunities are quite broad and very comprehensive.
The dApp also has a very attractive user interface and looking at the ranking, it is better ranked than JustSwap. The number of usabilities and tools integrated into the project is very attractive. Thus, I would easily subcribe to making use of PancakeSwap than JustSwap.
It is very interesting to know that there is very little that cannot be done using blockcain technology especially when it comes to the financial functionalities. Blockcain systems now afford us great avenues to undertake several operations with ease and convenience.
By building several dApps on different blockchain networks, users do have little need for the traditional banking and financial systems. Through these lovely innovations, earning money, executing transactions are so much more only require an internet supporting device and nothing more.
It is really beautiful that humans now have several options of media to handle their financial needs and this is nice considering the boundless opportunities and advantages that these projects called dApps bring.
Thank you very much Prof. @wahyunahrul for this interesting class.
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