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

Hello esteem steemians, welcome to week 5 lecture presented to us by professor @kouna01 about “JustSwap”. After reading through, and do some more findings to do the homework task assigned.

Question 1
Present the JustSwap platform in your own way, demonstrating its importance within the Tron ecosystem blockchain.

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JustSwap Exchange Platform

JustSwap is a decentralized exchange (DEX) platform hosted on the Tron blockchain network. This platform enables instant exchange of tokens based on the tron network known as TRC20 tokens. It is an open financial market that permits users to provide their assets as liquidity to be exchanged with other TRC20 tokens. This is done through the use of Automated Market Makers (AMMs) system.

Literally, AMMs is a protocol on DEX systems that depends on a mathematical model that determine prices between two assets. Unlike conventional systems that uses order book to price assets, AMMs provides pricing algorithms to assets based on availability of liquidity pools. With AMMs, a trader does not need another trader on the other side to initiate a trade, but rather a smart contract determines the market to a trader. That is peer to contract transaction.

Liquidity is provided by users which they earn rewards from transaction fees (0.3% per transaction) accumulated after traders swap TRC20 tokens. Therefore, liquidity providers share 0.3% as rewards for providing liquidity to the blockchain.

Importance of JustSwap Within the Tron Ecosystem
There are a number of factors that make JustSwap a perfect match to the Tron blockchain. The factors are as follows:

• Decentralized in Nature: The system permits users to freely trade between TRC20 tokens without interference of a third party. It gives an opportunity for a an open financial market without any barriers to traders.
• Provides Unlimited Liquidity: Liquidity is a determinant factor for any crypto project to be realized. JustSwap provides enough liquidity to users of the Tron blockchain.
• Highly Secured: Transactions on JustwSwap are executed by the use of smart contracts without any interruption. Traders cannot manipulate prices as prices are determined by the use of smart contracts.
• Highly Profitable: The processing fee given to users is with zero commission from the protocol.

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Question 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)

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The assets supported for trading by JustSwap DEX are TRC20 tokens based on the Tron blockchain. It equally permit users to swap non native assets from other blockchain but paired with BTC, and ETH. JustSwap supports over 40 tokens to be traded on the platform per CoinGecko. It equally has unverified tokens with low liquidity. The screenshots below indicates the tokens supported by JustSwap for trading.

Screenshots from https://www.coingecko.com/en/exchanges/justswap edited on Pixelcut

How to Determine Price of a JustSwap Token

Price of JustSwap tokens as I earlier mentioned are determined by an Automated Market Maker(AMMs) through the use of smart contracts in liquidity pools. Unlike conventional exchange platforms where buyers, and sellers can manipulate price of a token in the market to favor them, on a DEX like JustSwap, AMMs is the sole determinant of price of a token to be exchanged in the liquidity pools.

AMMs creates liquidity pools where liquidity providers provide liquidity for the pools, and are rewarded. The more assets are provided on the pools, it’s easier for trade to take place. AMMs uses a mathematical algorithm to determine price. The mathematical model is
X * Y = K .
Whereby:
X is token 1
Y is token 2
K represents the over all number of tokens found on the liquidity pool which is always constant.
Each time a transaction is done on the platform, a percentage of 0.3% is paid as transaction fee which is shared to liquidity providers. When a token for example USDC is used to swap TRX, it increases the liquidity of TRN in the pools. Here, Supply of USDC will be high leading to low prices while demand for TRX is high leading to high prices. To make sure that prices are stable, the constant factor k is used with the help of smart contract to determine price. When more assets are bought on the liquidity pool, the price is high, and when more is sold, price is low.

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Question 3
How do I connect my wallet to JustSwap.io? Is there a mobile app? (Screenshots needed)

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Here I am going to use Tronlink wallet to connect to JustSwap. I am going to show a step by step process using an apple phone.

Step 1:
Open your Tronlink app if you already have the app, but if not visit AppStore and download Tronlink. Since I already have the App, I just need to login using my username and password, it takes you to the homepage of Tronlink.

Screenshoot from TronLink

Step 2:
Click on the “Market” icon at the bottom of the screen of my phone. It takes me to a new page where justSwap is one of the dApps.

Screenshot from TronLink

Step 3: Click on JustSwap as indicated in the screenshot below. Tronlink automatically connects with Justswap. You can now input amount of asset to be swapped, recipient address and confirmed the swap.

Screenshoot from TronLink

Screenshoot from TronLink

Is there a Mobile Application for JustSwap

JustSwap does not have a mobile application but can be accessed via Tronlink wallet, which has both web, and a mobile application supported by both Android and iOS operating systems. It appears as a dApp on the Tronlink wallet, and even the web extension.

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Question 4
Include a real example of your interaction with Just Swap, demonstrate how you can trade on the platform. (screenshots required)

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I am going to use TronLink wallet to connect JustSwap and initiate a trade. Trading is done by swapping assets with the use of smart contracts to determine prices. Before a swap is initiated, one need to first of all have TRX on the TronLink wallet so that you can then linked to JustSwap and exchange with other assets. I am going to swap TRX with USDC.

Step 1:
After I connected my TronLink wallet to JustSwap, I click on swap icon as seen in the screenshot below. I proceed, and select the tokens to be swapped. I select TRX as token 1, then select USDC as token 2. Input the amount to be swapped.

Screenshot from JustSwap

Step 2:
After inputting the amount to be transacted, I proceeded, and click on “Swap” as seen below.

Screenshot from JustSwap

Step 3:
Now I have to confirm the swap. So I click on “Confirm Swap” as indicated on the screenshot below.

Screenshot from JustSwap

Step 4:
Once I click on confirm swap, it takes me to a new interface which requires me to input my password to confirm the transaction.

Screenshot from JustSwap

Step 5:
After I input my password, I click and “confirm”, and my swap is completed.

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Question 5
Include a real example of your interaction with Just Swap, explain How to add liquidity to JustSwap. (screenshot required)

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How to Add Liquidity to JustSwap

To add liquidity means a trader provides liquidity by locking TRC20 token pairs in the pool. At the end of the process, the trader is rewarded from the transaction fees earn after swapping. To add liquidity, you still need to connect TronLnk to JustSwap.

Step 1:
After connecting to JustSwap, i click on “Pool”, and click on “Add Liquidity”.

Screenshot from JustSwap

Step 2:
After clicking on “Add Liquidity”, it takes me to the pair pool, where I selected the pair TRX/USDC pool. Input the amount of assets to be supplied at the liquidity pool, and click on “supply”. Note that the assets supplied are set at 50/50.

Screenshoot from JustSwap

Step 3:
After I input the amounts, I proceeded, and click on “Supply”, and equally confirm the transaction as seen in the image below.

Screenshot from JustSwap

Step 4:
On the new interface, I had to confirmed the supply by providing my wallet password.

Screenshot from JustSwap

Step 5:
After input password, Click on “Confirm supply”, and my liquidity is successfully added as seen on the image below.

Screenshoot from JustSwap

Screenshoot from JustSwap

Screenshot from JustSwap

Now I am going to earn a reward for providing liquidity TRX/USDC on the pool.

Conclusion

To conclude, JustSwap is one of the decentralised exchange platforms built on the Tron blockchain. It enables instant exchange of TRC20 tokens without interference from a centralised authority. The JustSwap platform is easy to use by traders to swap TRC20 tokens by providing liquidity to the pools, and earn rewards from the fees paid after a transaction is made.
Special thanks to Professor @kouba01 for the practical lessons which has given me insights in to staking assets.