Is DeFi really a Ponzi?
23 September 2020
In short, TronFi means DeFi on the Blockchain platform of TronX (TRX). The main element of TronFi as well as the centerpiece of the whole system is JustSwap DEX (Uniswap version Justin Sun) and SUN (Smart Contract version Justin Sun).
First, about JustSwap, it’s a platform similar to Uniswap built by Justin Sun’s JST project. In fact, from the day it was founded (18 August), JustSwap quickly got $1.7M in liquidity poured in. At the time of writing, JustSwap’s liquidity has reached $134M, a relatively impressive figure when it just launched less than a month.
How about SUN? SUN is a Smart Contract Protocol built on the Blockchain of TRX and JST. SUN was born to serve two purposes, which are Yield Farming and system administration (similar to SUSHI, COMP, etc.).
The real question is, why TRX jumped in DeFi and why users switched to TronFi with JST Swap instead of using Uniswap? Well, simply, Justin Sun and TronX have sniffed the huge smell of money from DeFi and Uniswap. As for users, perhaps the biggest features of TronFi compared to EthFi are the transaction speed and transaction fees. As mentioned in the previous article, ETH is a Blockchain platform that has a “shortness” in its ability to process transactions, as well as the gas fee is too high. With TronFi, this is no longer a problem. The fast transaction speed will make its ability to protect assets better during the market crash and this is the main factor that many investors are concerned about.
TronFi also has its own problems. The first problem comes from the core of the project. It seems that Justin Sun has not stopped stealing, that is, from code to interface of JustSwap are almost the same as Uniswap. Perhaps, it will be easier to get used to for those who are already familiar with using Uniswap. On the other hand, this copy may make many people uncomfortable. The second problem that TronFi’s facing is the projects. Uniswap attracts lots of users because its projects have a relatively high “XXX” ability. However, on JustSwap, its projects are not diverse yet. The two most famous projects on JustSwap are PEARL and TAI, which also do not have an impressive ROI. Moreover, the majority of projects on JST are having a similar problem, but to a worse extent than Uniswap, which is fake projects. Decentralized means no one has control and it allows scam projects to be listed on the exchange massively.
It can be seen clearly that this is a relatively difficult problem of TronFi, especially when the market is temporarily in a downtrend. During this short-term downtrend, the likelihood of garbage Altcoin projects being pumped is relatively low. However, in half to one year period, it is a different story. When the market rebounds or new capital are poured in, many parties may choose TronFi instead of EthFi. And at that time, it is also another story. However, TronFi still needs to stay alert since in addition to ETH, it still has another big competitor. Somewhere, the giant, namely Binance, is also trying to jump into DeFi with Launch Pool and BinanceFi. One of its typical projects is Bella Protocol (BEL).