In our AMA we had Terence F, head of the JustSwap Project to take you on an exploration of the JustSwap and it was a great success!
Check below the conversation with Terence F about JustSwap.
Host: What kind of platform is JustSwap?
Terence F: JustSwap is the first TRON-based token exchange protocol that supports fast and free TRC-20 token exchange at system-set prices. For market makers, project teams, and users who wish to earn transaction fees by providing liquidity, JustSwap provides a threshold-free fund pool feature that allows them to add and manage their own pool without the platform taking any commission.
Host: Who can become a liquidity provider?
Terence F: JustSwap is in essence an open decentralized exchange where anyone can create trading pairs and provide liquidity without paying any listing fee. All users can deposit funds and withdraw their share anytime as per the Token-TRX ratio of the pool.
Host: How can a listed token enter the JustSwap whitelist?
Terence F: To crack down on fake tokens, JustSwap has started token authenticity check and opened a channel for reporting fake tokens. Any identified fake token will be immediately delisted.
Tokens entering the whitelist must meet the following criteria:
1. Everyday trading volume and liquidity composite indicator rank among the top 30.
2. Average daily trading volume and liquidity reach no less than 20,000 USD.
3. Tokens and projects are authentic, not fraudulent.
4. Tokens on the whitelist are ranked by trading volume and liquidity composite indicator.
Project teams can contact the JUSTSwap team and provide essential information in order to join the whitelist. Essential information includes but is not limited to: official website, contract address, social media account, white paper, team information, project description, Github link, etc.
The whitelist shall not serve as investment advice or official endorsement for any project. It only shows verified project tokens that have submitted full documentation for listing. Investors are advised to perform due diligence before making any investment.
Host: How will JustSwap benefit liquidity providers?
Terence F: Liquidity providers will earn from the 0.3% handling fee of each transaction as reward. All handling fees collected will directly go to the fund pool rather than the platform itself. Liquidity providers will share the handling fees in proportion to their contribution to the fund pool.
Host: Can users add any trading pair at will?
Terence F: JustSwap is a TRON-based token exchange protocol that allows users to add any trading pair and make exchanges between any TRC20 tokens.
Users can search the token’s name or contract address on JustSwap to create a trading pair and add a fund pool.
If you’re the first liquidity provider that creates this trading pair, the ratio of token you add will determine the price of that pool.
If you add liquidity to any existing trading pair, you will have to put two TRC20 tokens of the same value into the fund pool.
If you want to issue your own TRC tokens, please visit tronscan.org and send an application.
Host: Does JustSwap support TRC10 token exchanges?
Terence F: For the moment, JustSwap only supports exchanges between TRC20 tokens. Non-TRC20 tokens, including but not limited to TRC10 and ERC20 tokens, cannot be added or traded on JustSwap.
Host: What’s the difference between JustSwap and a decentralized exchange?
Terence F：JustSwap is an automated liquidity protocol.JustSwap builds an on-chain trading pair pool with TRX and TRC20 tokens of the same value to provide liquidity to the exchange. On-chain trading pair pool employs an automated market maker algorithm to execute trading, free of order-book and trading counterparty, and the system automatically sets prices and matches orders instantly.
Managed by smart contracts, each transaction pool supports token exchanges, adding liquidity, etc. and essentially maintains the function x*y=k to ensure the legitimacy of transactions.
Host: Does JustSwap require signup?
Terence F: Neither signup nor KYC is needed to trade on JustSwap. JustSwap is a decentralized token exchange protocol. Users only have to connect their decentralized wallet to access the service.JustSwap supports Tronlink extension. Users can simply install Tronlink extension on Google chrome to access JustSwap, instead of downloading the app. In addition, users can access JustSwap via many mainstream wallets such as Tronlink, Huobi wallet, TOKEN POCKET, imToken, Math Wallet, and Bitkeep.
Host: How is the price determined on JustSwap?
Terence F: Price is determined by the number of tokens in each pool.The smart contract maintains a constant function: x*y=k, in which x = token1, y = token2, k = a constant number.Each exchange takes place by replacing some of the tokens with a certain number of the other token. As k remains unchanged, balances of the tokens will be updated accordingly, which leads to changes in prices.
Host: Can swaps fail on JustSwap?
Terence F: Each transaction consumes your bandwidth and Energy. When there is insufficient Energy, bandwidth, or balance in your wallet address, the contract trigger may fail, and consequently, your order will not be successful. A slippery percentage that is too low will also result in failed swaps.
Therefore, you need to raise the slippery percentage and keep sufficient Energy and bandwidth in your wallet address to ensure transactions are successful. You may freeze TRX to receive bandwidth and Energy or keep sufficient TRX for burning in your account (TRX＞1).
Host: How does JustSwap reduce the gas fee?
Terence F: JustSwap is the first token exchange protocol on TRON. JustSwap chooses TRON over others because it is one of the few blockchains that employs DPOS mechanism, supports smart contracts, and is free of network congestion. Therefore, it takes only a small amount of Energy, instead of an extra huge mining fee, to record transactions on-chain.