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Everything You Need to Know About Trading on JustSwap

Did you know that the top ten digital assets comprise approximately 88 percent of cryptocurrency’s market value? Or that blockchain startups have raised funds totaling more than $31 billion? Clearly, a financial revolution is underway. 

But the surprising digital currency stats don’t stop there. More than a dozen central banks nationwide are considering issuing central bank cryptocurrencies. As the shift toward decentralized finance continues, crypto startups now vie for center stage.

What do these startups have in common? They all recognize the need for better financial solutions. Let’s take a closer look at JustSwap, one of the companies working to bring decentralized cryptocurrency exchanges into the mainstream.

What Is JustSwap?

JustSwap is a TRON-based automated liquidity protocol, the JustSwap exchange permits users to trade TRX and TRC20 tokens. The foundation that created JustSwap remains committed to exploring the potential of DeFi on the TRON network and developing TRON-based DeFi protocols.

What is TRON? A blockchain-based smart contract platform launched in 2018, TRON facilitates decentralized applications (apps). In this ecosystem, its chief competition includes Tezos, Cardano, Ethereum, and EOS. 

Besides creating JustSwap, the team has also launched products such as JustWrapper and the stablecoin USDJ. The platform is grounded in the contact function x*y=k like other Ethereum-based alternatives such as Monniswap and Uniswap.

What does the constant figure above determine? It sets the price according to the available liquidity of coins within the pool. More about this later. 

Wallets Compatible With JustSwap

Which wallets are compatible with JustSwap? Because it’s a TRON-based exchange, you must have a TRON wallet to interact with dapps (decentralized applications) on the TRON network.

Fortunately, the platform supports one of the most popular TRON wallets, TronLink. TronLink can be installed from the Chrome Web Store, and it functions as a browser extension. If you’d prefer to use TronLink on your smartphone, it’s also available through Google Play.

Are you interested in finding out more about the alt coins you might use to fund your TronLink wallet? Here’s our guide to where to buy alt coins

How to Use JustSwap

Now that you have a better idea of what JustSwap is let’s briefly go over how to use it. Start by setting up a TronLink wallet and logging in to it. From there, you’ll need to connect your wallet to the exchange by clicking on the “connect to wallet” button. 

This step will permit you to start trading your TRX and TRC20 tokens via the platform. With JustSwap, there’s no order book. Instead, the pricing mechanism proves automatic.

When you wish to make a trade, you’ll need to select an option and then enter the amount. You’ll also be prompted to select the coin you wish to receive in return. 

Before making the swap, you can double-check the minimum amount of token you’ll receive as well as the fee for the trade. Then, you’ll be asked to click the “swap” button followed by a “confirm” button.

Double confirmation provides an extra layer of consumer protection. From there, funds are automatically withdrawn from your TronLink wallet. 

Adding Cryptocurrency Liquidity to JustSwap

We’ve discussed how to connect your TronLink wallet to JustSwap so that you can start trading tokens.

But how do you add liquidity to JustSwap pools? Begin by clicking on “pool.” From there, navigate to the “add liquidity” button. You’ll select a pair and specify the amount for one token. 

The amount necessary for the other token gets automatically calculated and displayed. Of course, you’ll need to offer the equal value of each token to the liquidity pool. 

Next, check your share of pool and inputs. To finish your transaction, confirm the transaction in your TronLink wallet. 

JustSwap Fees

What are the fees associated with trade through JustSwap? The exchange charges a trading fee of 0.3 percent for swapping TRX and TRC20 tokens. Where does this trading fee go? It goes to liquidity providers. 

Beyond these trading fees, you won’t see any other transactional charges via the platform. It’s worth noting that this fee mechanism is similar to the liquidity protocols employed by platforms such as Mooniswap and Uniswap. 

How Price Gets Determined on JustSwap

What’s the driving force for token valuation on JustSwap? The platform looks at the number of tokens in each pool when making price decisions. 

As previously mentioned, its smart contract maintains the constant function x*y=k. But what does this mean? Think of it this way:

  • X= token 1
  • Y = token 2
  • K = a constant number

As you can see, each time a swap gets made, a certain amount of tokens get replaced by another token. Since the variable k remains constant, the balance of each token is updated relative to this.

The result? Changes in pricing.

Bear in mind that conversion between two TRC20 tokens is supported. The same goes for conversions between TRX and TRC20 tokens. 

JustSwap and Greater Transparency

Fortunately, conversion occurs quickly and easily between any two tokens supported by the platform, making for an excellent customer experience. Trading fees are collected automatically at a rate of 0.3 percent, which goes directly to liquidity providers. 

The result? A fully decentralized and secure exchange for your token trading needs.

What’s more, it simplifies the trading process by removing the need to make offers or match orders. And you won’t have to worry about any interventions of centralized facilities or institutions in the process, which means greater overall transparency. 

JustSwap Review: The Takeaway

justswap graphic

What’s the takeaway when it comes to JustSwap? This decentralized exchange protocol on TRON handles swaps between TRX and TRC20 tokens with ease. But you’ll need a TronLink wallet to get started. 

Are you ready to learn more about cryptocurrency platforms and the rewards that come with them? Check our latest article on the best crypto affiliate programs.   

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