Crypto Academy Season 4 Advanced course week 5: JustSwap by professor @kouba01

I have learned a lot from this lecture. Hope I will be able to answer the questions as expected from me.

let's get started…

Question 1

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JustSwap is a decentralized exchange built on the Tron network to provide liquidity. It is the first decentralized exchange protocol allowing traders to make exchanges between TRC_20 tokens without any involvement of intermediaries. One of the good things about JustSwap is, it allows liquidity providers to earn transaction fees through other traders who make transactions.

JustSwap is said to address the Etherium high gas fee due to the demand of its network. It has a very lower fee and is 200 times faster with an instant settlement of Swap or transaction. let's take a look at some features of JustSwap;

Connect To Wallet: This is one of the common features in JustSwap. It allows users to connect their wallets to justSwap. The most commonly used wallet is the TronLink wallet.

_{Screenshot from JustSwap}

Swap: This swap feature enables users to swap their tokens between the TRC20 tokens. This is swiftly done without waiting for a matching bit. The swapping comes with a transaction fee which is enjoyed by the liquidity providers.

_{Screenshot from JustSwap}

Add Liquidity: To provide a liquidity pool this is the feature a user needs to use for a few steps. The advantage of adding liquidity is to earn some income through the transaction fees paid by others.

_{Screenshot from JustSwap}

Features Of JustSwap

Fast And Convenient: Transaction is fast that does not have to wait for an order match in a queue before the transaction gets executed. This makes it easier for users to make a transaction or swap.

Accessible To All: Justswap has no restriction or whatsoever. Anyone can get on it and get about their business without any hindrance or KYC verifications. It's an open financial marketplace for everyone to get on.

High Returns: Liquidity providers earn some funds. By adding liquidity, a transaction fee is paid to the user with zero commissions attached.

Fast And Instant: Exchanges between TRX-20 tokens are easily executed making traders easily make some profits off the market without any hindrance.

Unlimited Liquidity: There is enough liquidity for thousands of investors and traders to utilize the platform to its best.

Importance Of JustSwap

1. For other exchanges, a trader transaction is said to execute if only it gets its matching price if not it remains pending. In the case of just swap, it makes an instant and swift transaction and does not have to wait for other bids or asking prices.

2. JustSwap enables users to swap between TRC20 tokens without the involvement of any third party or intermediaries.

3. Liquidity providers gain income from providing liquidity into the market pool. They gain this income from transaction fees paid by other traders.

4. JustSwap is compatible with TRON wallets. The commonly used Tron wallet is the TronLimk wallet.

Question 2

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JustSwap supports TRC-20 which are the tokens that are built on the Tron Blockchain. From the screenshot below we have the listed tokens which are; TRX, USDC, SUN, SUNOLD, NFT, BTC, WBTC, ETH, WETH, WBTT, WTRX, JST, WIN, DICE, LIVE, USDT, USDJ, TUSD, LTC, and HT are all tokens listed in JustSwap.

_{Screenshot from JustSwap}

_{Screenshot from JustSwap}

_{Screenshot from JustSwap}

JustSwap Token Prices

The prices of locked JustSwap tokens in the liquidity pool either increase or decreases depending on the demand of the pairs and the number of tokens in each pool. The formulae used to determine this price is;

X × Y = K where;

X = The First token
Y = The Second Token
K = Constant number which is unchanged.

Since the Constant remains unchanged. The tokens gets updated accordingly hence causing the changes in prices. Lets take a look at the illustration below;

_{Format from coindesk.com}

Using the screenshot above, let's assume a trader wants to swap Token A (TUSD) for another token, let's say Token B (TRX) using the pair TUSD/TRX at a price (Old position). This process increases token A (TUSD) availability to token B (TRX)

Now that K is constant, the price of token B (TRX) increases and the price of token A (TUSD) decreases in the pool ( New Position).

Question 3

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• To connect my JustSwap to TronLink Wallet, I will have to navigate to the Tronlink Official Website to download its extension onto my Chrome browser.

• I Logged in to my TronLink wallet onto the extension
  
  

  _{Screenshot from JustSwap}

• After the extension is set, i visited the Justswap official website and click on Connect Wallet
  
  

  _{Screenshot from JustSwap}

• next i clicked on the TronLink wallet
  
  

  _{Screenshot from JustSwap}

• I click on Connect to connect the TronLink wallet to JustSwap using the extention
  
  

  _{Screenshot from JustSwap}

• Now the TronLink wallet has been connected and will show the balance on the wallet.
  
  

  _{Screenshot from JustSwap}

Is there a mobile app?

JustSwap does not support a mobile app but one can use the Tronlink wallet either on applications both on Android and IOS or their official website.

Question 4

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To make a trade on JustSwap, I would have to have TRX token balance on my TronLink Wallet which I have already linked to my JustSwap. Let's take the steps below;

• On the JustSwap official website i click on Swap on the top left side of the page.
  
  

  _{Screenshot from JustSwap}

• The next step i will select the token i will swap with and input the amount to swap.
  
  

  _{Screenshot from JustSwap}

• Personally i selected TUSD as the token to swap with TRX with an amount of 50 TRX which is equivalent to *4.783598 TUSD. I clicked on *Swap
  
  

  _{Screenshot from JustSwap}

• i then review the details of my transaction then then *Confirm the Swap. I was charged with a fee of *0.15 TRX
  
  

  _{Screenshot from JustSwap}

• A popup will appear from my TronLink extention for me to Sign the transaction. I click on Sign
  
  

  _{Screenshot from JustSwap}

• On this step the transaction has been approved and confirmed, adding 4.783598 TUSD to my wallet.
  

_{Screenshots from JustSwap}

Question 5

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Adding Liquidity generates income from individuals who swap their tokens through payment of transaction fees. let's get into the steps involved in adding liquidity;

• On the Justswap official website we click on Pool then also click on Add Liquidity.
  
  

  _{Screenshot from JustSwap}

• We choose the tokens we want add. In my case i will used TRX and TUSD to supply. I used an amount of 40 TRX which is equivalent to *3.862075187061740416 TUSD. I click on *Supply
  
  

  _{Screenshot from JustSwap}

• A popup menu from my TronLink will require me to sign the the transaction. I click on Sign To Approve
  
  

  _{Screenshot from JustSwap}

• I need to cross check my swap details and then click on Confim Supply
  
  

  _{Screenshot from JustSwap}

• As we can see from the screenshot. the Liquidity has been added to the liquidity pool.
  

_{Screenshot from JustSwap}

CONCLUSION

JustSwap was launched to solve the problem of high fees on the Ethereum network and faster transactions.

JustSwap is now gaining a lot of attention because of its benefits and I personally think it’s going to be one of the most used Decentralized exchanges.