TRON joins forces with 1inch, expands Defi ecosystem

  • TRON foundation and 1inch exchange are joining forces for a strategic partnership.
  • As part of the deal, TRON’s newly-launched decentralized trading protocol JustSwap will integrate with both 1inch and Mooniswap.

TRON has only been in the defi business for a matter of months, but things move fast in Justin Sun’s world. The latest development is a landmark strategic partnership between TRON and 1inch exchange, the largest decentralized exchange (DEX) aggregator on Ethereum. As part of the deal, TRON’s newly-launched decentralized trading protocol JustSwap will integrate with both 1inch and Mooniswap, which is 1inch’s very own automated market maker (AMM).

The partnership means that another highly-regarded Ethereum defi project has chosen to throw its weight behind the TRON ecosystem, which is expanding at a furious rate. JustSwap, a TRC20-based alternative to Uniswap, is the first token exchange protocol on TRON. Created to help liquidity providers earn fees for pooling token pairs, JustSwap was responsible for much of TRON’s growth during August as users got to grips with its interface.

TRON’s defi ecosystem expands

Having celebrated its one-year birthday by exceeding half a billion dollars in volume earlier in 2020, 1inch has been ostensibly tapped to enhance JustSwap’s access to a crypto-trading audience while improving its overall price accuracy. DEX aggregators such as 1inch extract data from various DEX order books to give traders the best possible prices for digital assets. As such, they’re considered a vital building block in the growth of defi.

The integration of Mooniswap, meanwhile, enables liquidity providers to capture profits otherwise captured by arbitrageurs, while protecting traders from front-running attacks. TRON intends to incentivize liquidity providers on Mooniswap by rewarding them with TRON (TRX), which remains a top 15 cryptocurrency by market cap.

“We believe that users and liquidity providers will benefit from Mooniswap’s implementation of virtual balances,” explains Sergej Kunz, co-founder of 1inch. “At the same time, Mooniswap will enjoy the best-in-class advantages that come standard with TRON’s blockchain. These include faster, cheaper service, high-throughput scalability, a huge developer community, and a massive social media following.”

JustSwap captures traders disillusioned with Ethereum

It’s been a hectic few months for TRON which has embraced defi with a series of flashy announcements and new products. In addition to JustSwap, it unveiled a stablecoin issuance and lending platform called JUST, which users can utilize to collateralize TRX and BTT to mint USDJ stablecoins. JUST Stablecoin (USDJ) and JUST (JST) yield farming launched on August 31 as the TRON defi revolution kicked off in earnest.

JustSwap has perhaps been the most talked-about new protocol, exceeding $10m of volume on its opening day and with 24-hour trading volume currently exceeding $125m according to CoinGecko, having announced support for 581 trading pairs. JustSwap looks to have captured defi traders who have grown dissatisfied by Ethereum’s soaring gas fees and sluggish settlement.