JustSwap is a decentralized exchange launched by open source, cryptocurrency, and DeFi (Decentralized Finance) project based on TRON.  The protocol is governed by the JST token. JustSwap can convert any TRC20 tokens based on a system price. All trading fees on the platform go straight to liquidity providers of the protocol, instead of the protocol itself.^[1]

History

JustSwap is a decentralized protocol that was launched by TRON in August 2020, as part of TRON's initiative to become more involved within the DeFi space.  The launch of this protocol is reportedly step 1 in a three-step plan to create a DeFi ecosystem around the TRON blockchain. The following planned steps are set to be the launch of JUST stablecoin (USDJ), and JUST (JST) yield farming, which is set to launch August 31, 2020.^[4]

Justin Sun, TRON's CEO celebrated the launch of JustSwap via a livestream that attracted over 763,000 viewers on Chinese app Yizhibo. Additionally, Sun posted a video that explains Uniswap, and an open letter 'to crypto lovers on JustSwap launch.'^[2][3]

TRON and Just team are going All-In on the DeFi ecosystem. We will not back down until we see the decentralized financial revolution end in triumph. I have faith that as long as we race against time and keep upgrading our products, JustSwap will one day become the powerhouse of 100x cryptos and TRON will build a DeFi protocol that parallel's Ethereum's.

Despite trading volume exceeding over $6 million within the first few days of JustSwap's launch, TRON's native token, $TRX, suffered a 24-hour drop of 4.5%. Regardless, the token still stood as one of the best performing among the top 30 cryptoassets, gaining over 36% within the previous seven days.^[4]

In September 2020, TRON entered a strategic partnership with a 1inch.exchange. Under the partnership deal, JustSwap will fully integrate with 1inch and Mooniswap (1inch’s own AMM) will integrate into TRON's blockchain.^[7]

TRON’s developers said that they expect that the integration will allow JustSwap to serve more traders or investors, while improving its price accuracy.^[5][6]

$USDJ

USDJ is a stablecoin that is pegged to the United States dollar. Anyone can deposit TRX as collateral into the protocol to generate USDJ. This opens a collateralized debt position that must be repaid before the deposited TRX can be reclaimed. If the underlying asset plunges in price while it is collateralized it will trigger a liquidation and the remaining value will be stored in the CDP for withdrawal.^[4]

When the market is unstable, a target rate feedback mechanism is triggered which allows the USDJ system to adjust the target price. This leads people to hold USDJ when the target rate is positive and sell when it is negative. This feedback mechanism reduces volatility^[7]

$JST Token

JustSwap is governed by the JST token which is used to vote on all governance actions on the platform. Stability fees that are charged after a user pays back their CDP can only be paid in JST tokens. It can only be earned through liquidity mining, trading, and participating in JustSwap campaigns. JST has a maximum supply of 9,900,000,000.^[3]

In May of 2020 Tron Network airdropped 2.2% of the total JST supply to TRX holders, in total it was 217,800,000 JST. The amount given to each TRX holder was determined by the formula: [(TRX held by the customer during snapshot / Total TRX held by TokenPocket during snapshot) * Total JST received by TokenPocket].^[5]