JustSwap - Crypto Academy / S4W5 - Homework Post for @kouba01

Introduction

Today world moving toward decentralized finance. This system makes the process and brings more innovation in the system of finance. First of all, our physical financial system moves the digital financial system. As time is passed, more and more innovations are introduced in every system. In the same way, the Next step of our Digital financial system is a Decentralized financial system called Defi.

In our physical system, there is the third which is involved between the finance and user. But in Defi, there is no third party involved. Transactions are executed independently and automatically. There are many Decentralized Exchanges that exist. PancackeSwap, AAVE, Compound, OpenSea, Dy/Dx, JustSwap and Curve are the example of Defi exchanges protocols.

Question No: 1

Present the Just Swap platform in your own way, demonstrating its importance within the Tron ecosystem blockchain.

JustSwap is a decentralized finance app that brings innovation to digital finance. There are many features offered by JustSwap Defi. It is a Decentralized finance application that is built on the basis of Tron Blockchain technology. In this application, all the activities are done without the presence of a middle man.

All the transactions, trading, and Swapping are done independently. In this Platform, we can swap all the tokens that are attached with Tron network TRC-20. We can swap our token with another token. The fee is applied we swap one with another. This fee is collected by the protocol and the Investors who provide the liquidity. On the behalf of fees, they provide security of this platform. Here are few features offers by Just Swap. We will discuss these features one by one.

1. Swap

In this platform, we can Swap our Token that is linked with TRC-20. We can swap our token with another token without the interference of central authority and intermediaries. It is a huge benefit that we get to this function. When someone swaps their asset here fees are applied on this swapping. This fee is collected by protocol and investors of this platform who provide liquidity.

_{Screenshot from^JustSwap}

2. Liquidity

This is another feature of JustSwap. In this feature, we can get benefit from the liquidity pool. In this function, we add our assets to the liquidity pool and earn profit from it. Our earning profit is dependent on the number of assets that we enrolled in the liquidity pool. We add liquidity of particular coins. When someone swaps their asset with another asset then the fee is charged. This fee is distributed according to the percentage of assets invested. In this way, this is a great feature of this platform. We get benefits from the Liquidity pool.

_{Screenshot from^JustSwap}

3. JustSwap Mining LP Token

In this feature, we earn profit by stacking our assets into this platform. On the behalf of stacking assets, we get LP Tokens. We get the LP token after adding the Liquidity in the liquidity pool in this platform.

_{Screenshot from^JustSwap}

Importance of JustSwap within the Tron ecosystem blockchain.

There are many elements that a Tron Ecosystem gets from JustSwap. We will discuss a few of them.

Swapping without Intermediaries.

It is a top feature that a Tron network gets from this decentralized platform. Here we can easily swap our token with other tokens that are listed on the TRC-20. In this Swapping process, there is no middle authority involved like in a centralized system. When transactions are directly executed then fewer the fee is charged with respect to a centralized system.

Further, transaction execution spend is increased due to the absence of intermediaries. All transactions are executed on the smart contract. Less is fees charged and this fee is beneficial for the liquidity providers.

Earning Through Liquidity Pool

Due to this liquidity feature, the Tron ecosystem has great importance. In this feature, we invest our assets in a liquidity pool and earn a profit on the behalf of asset’s amount. All this process is done through Automated Market Makers. When someone swaps their asset with another listed asset then a few amounts of the fee are applied to this swapping process. And this fee is a profit of investors. This earning is due to the providing liquidity.

Question No: 2

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)

JustSwap supports all those tokens which are built on Tron Blockchain. Further, we will visit and explore the JustSwap to find out all the tokens that are supported by the Tron Blockchain. Here is the list of all Tokens. You can See these tokens in the following table.

Coin Supported by Tron Blockchain

TRX	USDC	SUN	SUNOLD	SFT	BTC
WBTC	ETH	WETH	WBTT	WTRX	WIN
DICE	LIVE	USDT	USDJ	TUSD	LTC, HT

_{Screenshot from^JustSwap}

All the above tokens are supported by Tron Blockchain. We can use these tokens to swap with another token and add liquidity to them.

How to Determine the Price of Token on JustSwap?

As we discussed above, in JustSwap Automated Market Makers is used to determine the price of an asset. In Automated Market Makers, there is no concept of booking orders and ask/bid price like in the centralized system. The absence of Booking orders and Bid/Ask prices is due to the absence of intermediaries. The price of the token is determined by using the Automated Market Makers module.

The formula that is used to determine the price is: X * Y = K.
In the formula the First Token is represented by X, and Second Token is Represented by Y.
K is constant that represents the total liquidity in the pool.

We will understand this concept with an example of two tokens. LIVE represent the first Token. HT represents the second token. When we perform huge buying of HT token with the Second token LIVE. It reduces the Quantity of HT tokens in the liquidity pool. The Quantity is reduced then the price of that token is increase. In the same way, if the LIVE token Quantity is increased in the pool. It will automatically enhance the price of the LIVE token.

To maintain the balance in the liquidity pool we use the formula. According to this formula, the price of the First token is the same as the value of the second token. In this way even in both buying and selling conditions, the balance in the liquidity pool is maintained.

Question No: 3

How do I connect my wallet to JustSwap.io? Is there a mobile app? (Screenshots needed)

The process of connecting the wallet to JustSwap.io is simple. Because there is no process of signup and login at JustSwap.io. I Chose to connect my web Tron link Wallet to this protocol. For connecting the wallet, you need to do the following steps.

Step: 1

• First, You need to log in to your Tron Link wallet in a web browser.
• Second go to the JustSwap site.
• Click on the Connect Wallet Button.
• Then click on the TronLink Wallet as shown in figure two on the right side.

Step: 2

• Next, a connection window appears. You need to click on the Connect Button.
• In the right figure you can check our wallet is successfully connected with JustSwap.

Here our wallet is successfully Connected with JUST SWAP.

Does JustSwap has Mobile Application?

JustSwap has no Mobile application. It only has a web existence. We can perform activities on his web official platform. There is no android or IOS application on the play store. But we can access JustSwap as an extension in other applications like Tron link Wallet. We can connect our wallet to this platform to performing the Swapping and adding liquidity to the pool. So, we can access this exchange protocol using the website and Tron link Wallet.

Question No: 4

Include a real example of your interaction with Just Swap, demonstrate how you can trade on the platform. (screenshots required)

I chose a website to interact with JustSwap. Here I will explain how to trade on JustSwap. To do trading on JustSwap, first, you need to log in on online wallet. The connect the wallet to JustSwap. After that, we are able to do trading on JustSwap.

Step: 1

• Select the Swap Button at the top left for swapping the asset. I chose to swap TRX with USDT.
• First, you need to select the token.
• I select the TRX and USDT Token.

Step: 2

• After Selecting I enter the Value of 1 TRX to swap with USDT.
• After that you need to click on the Swap Button.
• After that, a confirmation window appears as you can see in the right figure.
• Click on the Confirm Swap Button.

Step: 3

• Next, We a window appears, in this we need to click on the Sign Button for transaction execution.
• After Clicking on the Sign Button, you see that our swapping is successfully done. You can see in the right figure.

Here are our Transaction Details on TronScan.

_{Schreenshot from ^TronScan}

Question No: 5

Include a real example of your interaction with Just Swap, explain How to add liquidity to JustSwap. (screenshot required)

I am going to use the JustSwap website to interact and adding the liquidity in the pool. First, you need to perform the initial steps like login to the Tronlink wallet and connect with JustSwap. I chose TRX and USDT to add liquidity to the Liquidity Pool. For adding liquidity, you need to perform the following steps.

Step: 1

• After landing on the homepage you need to switch the Pool and Click on the Add Liquidity.
• Select the token, I select TRX and USDT Token.

Step: 2

• I Enter the 5 TRX adding the Liquidity.
• At last click on the Supply Button.
• In Next Window, you need to Click on Sign to Approve Button.

 
Step: 3

• Next, Clickn the Confirm Supply Button.
• In Next window you need to click on Sign Button for further processing.

Here you can see that your adding liquidity process is successfully completed.

_{Screenshot from^JustSwap}

Here is a transaction detail on Tronscan.

Schreenshot from ^TronScan

In this way, we add Liquidity to Liquidity Pool.

Conclusion
JustSwap is a decentralized finance application. In this platform, we can swap our assets with other tokens listed on this platform. The tokens that are built on Tron Network are supported by JustSwap. In JustSwap we can do swapping without the interference of intermediaries. This is why our transactions are executed in a very short time.

Less transaction fee is charged on swapping because it is a decentralized platform. There is no concept of Order booking and Bid/Ask. Here all the activities are processed based on Automated Market Makers.

To maintain the balance in the liquidity pool, a formula is used. In this formula, the value of the first coin is the same as the value of the second token. In this way, it does not matter how you bought or sell. The price and quantity of assets remain the same using the formula as discussed above.

JustSwap has no mobile application. It just has a web existence. But we can access JustSwap by using another mobile application like Tronlink wallet. In this application, we can access JustSwap as an extension. Overall this lecture is full of information about JustSwap. I learned many things from this lecture. Thank You!

Cc:

@kouba01

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: Author

@noshi