Recently, Sun Yuchen, whom I haven’t seen for a long time, was collectively defended by TRON investors.

Since the last acquisition of Steemit was kicked out of the management by the community and besieged by the entire network (please click the link for the previous information), Justin Sun turned to the strategy of buying is worse than copying, and began to copy the DeFi ecology of Ethereum.

The reason for this incident is that Justin Sun claimed to launch JustSwap on the TRON chain, which is a big casino in the currency circle: Uniswap.

Copying homework and even copying the name, this is the first time seeing Uncle Jian.

But this time, Brother Sun played off again. On the day JustSwap went live, investors defended their rights.

So what is Uniswap? Why did JustSwap make everyone defend their rights so quickly?

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1. What is Uniswap?

Uniswap is a decentralized exchange. After the V2 version was launched in May this year, it continued to detonate the currency circle. One of the myths that a token called Sta increased by 10,000 times in 6 days after Uniswap went live even ignited the currency circle. The myth of creating wealth also made Uniswap popular with everyone.

Since May, Uniswap's liquid assets have grown astonishingly. It is now close to 290 million US dollars, and the transaction volume is also amazing. The peak transaction volume on August 21 exceeded 210 million US dollars.

So what is this Uniswap that has such magical power?

To put it simply, Uniswap is a contract deployed on Ethereum. Through Uniswap, any ERC20 token can be exchanged with Ethereum ETH. One of the benefits of Uniswap is that any token issued on Ethereum can be exchanged without registration and real name, unlike our current traditional centralized exchanges, which require registration and real name to be able to actually withdraw cash.

If you want to exchange two tokens, for example, STA is exchanged for ETH. In the centralized exchange, it is necessary to place an order and complete the transaction through the centralized exchange. For example, when you want to use ETH to buy STA, you need to set the specific ETH price you want to buy and place a buy order on the centralized exchange. If the price matches the sell order placed by others, the exchange will facilitate the transaction through the matching mechanism.

The price of the token is affected by the price and quantity of the pending order. For example, if the sale is completed at a price of 1, if someone still needs STA, the price will naturally be pulled up when the pending buy order is placed, thus forming a price increase. , so if in a centralized exchange, a large amount of funds can fully realize the price control.

So how to realize the trading of tokens in Uniswap?

The first step: to create liquid assets in Uniswap, which is to create trading pairs similar to those in centralized exchanges. But the difference is that listing on a centralized exchange needs to be reviewed and charged by the exchange. Uniswap does not have any review and fees. Any trading liquid asset can be listed, and the exchange price in the asset is the provider itself. set up.

When creating liquid assets on Uniswap, it is necessary to submit a token pool to Uniswap. In the token pool, the quantity X and Y of two tokens are respectively determined. After the liquid assets are successfully created, Uniswap will use the formula X*Y = K To maintain the exchange price of X and Y, K becomes a fixed value after the liquid assets are created.

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2. Why is Uniswap a big casino in the currency circle?

The previous formula seems nothing special, but it is this formula that makes Uniswap a big casino.

so amazing?

Let Uncle Jian give an example to feel:

For example, when we create STA/ETH liquid assets, we submit a fund pool of 10 ETH and 1000 STA to Uniswap, then Uniswap calculates K=10*1000=10000.

If someone wants to exchange 1ETH for STA in Uniswap, he needs to transfer 1ETH to Uniswap. At this time, because there are 11 ETHs in the fund pool, Uniswap ensures that the product of the two tokens is fixed. The number of STAs in the token pool should be Becomes: 10000/11=909.09, so the Uniswap smart contract will return 1000-909.09=90.91 to the user.

When the liquid assets are first created, it can be considered that 1 STA is equal to 0.01 ETH, and after this exchange, 1 STA is equal to 0.011 Ethereum, which is equivalent to a 10% price increase.

If someone buys 1ETH for the second time, Uniswap will only return 75.75 STA at this time, which is equivalent to 1STA=0.013 ETH, which is another 18% increase.

This mechanism of Uniswap determines which side buys more, the price will rise, and at the same time, the later the purchase, the faster the rise. Therefore, once a Uniswap token enters the vision of most people, the rising currency price makes the leeks who are chasing the rise and fall scramble to buy it, which further promotes the price rise until no one buys it again, and the same token is opened. rapid decline process.

Because Uniswap's listing and price manipulation are so simple, Uniswap has also become a platform for quick listing and a crazy token harvesting field, and these project parties that issue tokens attract everyone by shouting orders in the group The investment, and as for the project is not important anymore, what is important is to be able to find someone to take over.

In general, Uniswap has been completely reduced to a fun place for a fast-running fund game. Whoever enters the sooner and runs faster will be able to make profits. Investors always fantasize about being able to run faster than others.

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3. Brother Sun may be late, but he will never be absent

Uniswap's efficient harvesting and rapidly growing transaction volume finally alarmed Tron Chain, which is good at gambling games, and its leader, Justin Sun, and he decided to start copying again.

Isn't it just a casino? Are there still few gambling games on TRON? So Brother Sun copied it very easily. JustSwap trading and price change rules are exactly the same as Uniswap, except that ETH is exchanged for TRX when creating liquid assets.

After less than a month of preparation, JustSwap claimed to be a 100-fold coin factory before going online, and even told users to enter early and think less. If you want to say that Brother Sun is caring, I will tell you clearly, where is the value of these coins, coming to JustSwap is hype, don't take your brains.

At the same time, some people in the investment group boasted that TRON technology is awesome, and JustSwap led everyone to get rich, and described a future of getting rich for everyone, and everyone invested heavily in this beautiful dream.

However, Sun Huo did not earn his name in vain. As soon as JustSwap was launched, many people bought fake coins with a lot of money.

What happened to counterfeit money?

Since anyone can issue TRC20 tokens with any name on the TRON chain, TRON does not impose any restrictions on the names of the issued tokens. That is to say, if the name of the officially issued token is ABC, others can also issue an ABC with the same name, but the address of the token is different.

For example, Uncle Jian can search for LOOP tokens in the TRON chain browser casually, and you can find a lot of them. So which one is the real coin and which one is the counterfeit coin can be registered and certified by the TRON official logo. Generally, the certified Logo can be regarded as real money. But what is even more exciting about this LOOP token is that the logo was preempted by counterfeit coins, and the real coins could not be registered. The registration rules of Tron are mysterious.

Because the fake Li Kui was in power on the TRON chain, many investors did not know, so they poured funds into the counterfeit currency trading pool, and some even lost 500,000 TRX, worth 84,000 RMB.

There is also a takeaway boy who has saved money for 2 years delivering food, and cleared it overnight.

In response to the proliferation of counterfeit coins, Sun Ge downplayed the next day but said that there is no way to guarantee the authenticity of the coins. What about the mindless buying mentioned before, and the investors started to pretend to be innocent after the money was cut?

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Fourth, Jianshu summary

Seeing the rapid rise in prices on the surface, most people think that they can make money and run into the market, but they don’t really understand the rules of the game behind the skyrocketing prices. As you can imagine, most people are cut off from the leeks.

Regardless of whether it is Uniswap or JustSwap, its essence is through decentralized token transactions. The value of these tokens needs to be judged by yourself, so the most important thing is whether you really understand the value of the tokens you are trading. Do you really understand the price mechanism of Uniswap, instead of thinking that you can make money without thinking about it? If there is such a good thing, why should Sun Ge give it to you?

Remember Uncle Jian's words: "Thinking does not necessarily bring rewards, but not thinking will definitely bring losses."