While others are busy exchanging token with justswap do you know that you can leverage that opportunity to make money for yourself by providing liquidity for Justswap?
If Yes is your answer, then I am super excited because you have successfully created a passive income for yourself.
But if your answer is No, then read this to the end and follow the step by step guide so that you too can become a Justswap Crypto Exchange Liquidity provider.
Or don’t you want to become a crypto exchange liquidity provider where you get to earn free token whenever someone makes an exchange?
Even if this is your first time hearing the word “Justswap” or “Liquidity” am going to break it down to the lowest level so you can understand what it is and be able to be part of it.
So let get started.
What Is Justswap
JustSwap is an exchange protocol on TRON for exchanges between TRC20 tokens.
Conversion can happen easily between any 2 TRC20 tokens based on system price. All trading fees collected will directly go to liquidity providers of the protocol, rather than the protocol itself.
This ensures full decentralization and security.
What is Liquidity
Let say you have Tron token and you signup for a program that needs maybe SUN token instead of going ahead to buy SUN, you can swap your Tron token for SUN and the process of the exchange is what is known as Liquidity.
So with that said, Liquidity means the ease with which assets can be exchanged without affecting the prize of that asset.
Who is a Liquidity Provider
A Liquidity provider, which can be referred to as the “market maker” can be anyone, you or your friend or brother.
What makes you a liquidity provider is the work you do, and what do you do?
As a liquidity provider you act as a “buyer” and at the same time a “seller”.
How is that possible?
For instance when you add liquidity on Justswap you are literally offering your token for sale and actively buying simultaneously.
How do Liquidity Providers Make Money From Justswap?
As a liquidity provider, your actions helps to make the market smoother, and robust to handle high trade volumes.
But then, how do you profit?
You profit by receiving commission in form of a reward for providing liquidty as services.
Because if there is no liquidity in Justswap exchange transactions will not go through, and by so doing investors will take their business to another exchange.
How to Start using Justswap
Before you can use Justswap you will have to connect your wallet with it. and here is how to go about it.
1. After accesing their site or you download their app, locate and Click on “Connect to Wallet” on the top left of the navigation bar
2. Choose “TronLink Wallet”
3.After you enter the password and log into your TronLink chrome account, choose the wallet you want to connect.
4.After the connection is successful, you will see your wallet address and its TRX balance on the top left corner.
How to Add Liquidity in Justswap
- Choose a fund pool and click “Add Liquidity”, or choose the liquidity you have already added from Pool ->Your Liquidity and click on “Add”.
2. Choose two tokens you want to add liquidity to (one of them should be TRX), and enter the amount of funds you want to add, then click “Supply”.
Note: When you enter the amount of a token, the platform will calculate the corresponding amount of the other token based on the relative price of the token pair in that pool.
3. Click “Confirm to supply” in the confirmation window
4. Adding liquidity requires confirmation from your wallet. Please click “Accept” in the “Request Signature” pop-up window.
5. The pop-up box shows that your transaction for adding liquidity has been submitted.
6. Liquidity is successfully added when the upper right of the page shows “confirmed” after a few seconds.
How to Remove Liquidity in Justswap
1. In “Pool -> Your Liquidity”, find the trading pair pool you want to remove from the liquidity pool, and click “Remove”.
2. Choose the amount of liquidity you want to remove, then click “Remove”
3. Click ” Confirm to remove” in the confirmation window
4. Removing liquidity requires confirmation from your wallet. Please click “Accept” in the “Request Signature” pop-up window.
5. The pop-up box shows that your transaction for removing liquidity has been submitted.
6. Liquidity is successfully removed when the upper right of the page shows “confirmed” after a few seconds.
Can I Lose Money by Providing Liquidity in JustSwap?
This is not a YES/NO answer but then, you get less from the liquidity pool if the price of any side goes down. But you get fee rewards, so generally the rewards are supposed to outweigh the impermanent loss, but not always.
However if you’re adding to an LP that has a stablecoin, then you’re actually reducing your overall risk by half (impermanent loss still affects you, but from an investing perspective, you’re diversified with a safe asset).
Since this is tron, your only choices for stablecoin LPs are:
- USDT-TRX
- USDJ-TRX
This isn’t to say you shouldn’t add liquidity to a non stablecoin LP, just that a stablecoin is less riskier.
How to Exchange Token in Justswap
1.Choose the token you hold and the token you want to exchange it for. After you enter the amount, JustSwap will automatically calculate the corresponding amount of the other token, then click “Swap”.
2. Confirm the details for your swap in the confirmation window, then click “Confirm Swap”.
3. The swap requires confirmation from your wallet. Please click “Accept” in the “Request Signature” pop-up window.
4. The pop-up box shows that your swap has been submitted.
Conclusion
Justswap is a completed defi (decentralized finance) platform with lot of income potential to crypto lovers.
Now, if you can become a liquidity provider for not just justswap alone, but for other exchange platform and by so doing you have create a passive source of income for yourself.
So you pick the brands you want to work with, and carry on. More tutorials coming on the bulliscoming.
