A Detailed Guide to the Top 5 Protocols on Tron (TRX)
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Tron is Considered a close substitute for Ethereum and has drawn attention in the Decentralized Finance (DeFi) landscape. It also has a Total Locked value of 11% in the DeFi space. Tron has been ranked among the top ten cryptos with a market capitalization of $7.15 billion.
The good news for cryptocurrency investors is that Tron’s solid protocol compatibility has been driving the expansion of its investing ecosystem, which may present an opportunity for those wishing to diversify their cryptocurrency holdings.
Tron Defined:
Sun Yuchen designed Tron in 2017, and this project aims at remodeling the World Wide Web. As a result of this vision, Tron has attracted developers and investors from around the world. However, this project basically focuses on China and has been nicknamed the “Asian Ethereum.”
Like other blockchains, Tron emphasizes decentralized applications (dapps), smart contracts, tokens, and delegated proof-of-stake consensus (DPoS), which were previously established by other projects, as opposed to emphasizing improvements in cryptography or network design. Tron’s compatibility with Ethereum also attracted attention.
This project makes use of something called the Decentralized Proof of Stake (DPoS) agreement mechanism. In this mechanism, 27 shifting “Super Representatives” confirm transactions and also keep the history of the system. Assuming you are a Tron user, you can take part in the system by staking Tron tokens. This gives you voting rights. Also, if one wishes to use the Decentralized Applications on the Tron ecosystem and take part in the operation of the project, one will have to possess the Tron token.
Tron has one of the biggest decentralized finance (DeFi) ecosystems due to its support for smart contracts and dapps. It ranks second only to Ethereum in terms of the total value locked (TVL) in DeFi at the time of writing, with over 11%.
Nevertheless, JustLend dominates Tron’s Total Locked Value, while there are still 19 other functioning projects on Tron’s network.
The Best Three Projects on Tron by TVL (Total Locked Value)
JustLend
This is a DeFi lending project that is supported only by Tron. It is a project designed mostly for lending and loaning Cryptocurrencies such as Bitcoin, Ethereum, and Tron itself.
The program uses pools with interest rates set by algorithms to let users lend and borrow tokens in a risk-free and automated setting. Real-time lending and borrowing, automated liquidation when the collateral value falls below the threshold, and auto-matching orders using smart contracts are a few of its distinctive characteristics.
Every time a TRON block is generated, which happens roughly every three seconds, interest accrues. The protocol issues tokens that are backed by external assets and permit interest to be earned by token holders. With a TVL of around $3.8 billion as of this writing, JustLend is the sixth-largest DeFi ecosystem.
JustStable
This is a Stablecoin that was designed for Tron’s ecosystem. JustLend and JustStable are part of the broader Decentralized Finance ecosystem named JUST. The JUST ecosystem was designed by Justin SUN in 2020.
The USDJ stablecoin is pegged to the price of the US dollar and is the main asset of JustStable, a lending platform that issues the stablecoin based on multiple collaterals. JustStable acts as a lending hub where users can borrow stablecoins to be used for yield farming and trading. Specifically, USDJ is generated through so-called collateralized debt positions (CDPs).
To date, these CDPs have received deposits totaling over $1.2 billion in cryptocurrency, which will be used to create the stablecoin.
SUN
The creation of SUN was aimed at using it to aid the growth of Tron’s Decentralized Finance ecosystem. SUNN has been interested several times. SUN is mainly used for JustLend.
The platform’s management, buybacks, burn rewards, and providing rewards to liquidity providers are all made possible by the native coin with the same name.
SUN.io seeks to create a comprehensive DEX ecosystem that offers improved functionality, profitability, and security by utilizing a variety of transaction protocols. The SUN’s burn mechanism and the holders’ voting privileges, meanwhile, promote a self-sustaining environment.
Conclusion
Tron has become very famous and is mostly considered a substitute for Ethereum. Also, this project has seen its customer base grow considerably, in Asia and has gathered a portion of the Decentralized Finance market. Nevertheless, the fact that JUST is so dominant on its network may negatively impact its growth and diversification.
Presently, a Tron token costs $0.07 and is among the top ten cryptocurrencies, with a market capitalization of $6.6 billion as of last month. Also, this crypto has experienced a lot of good and bad times, but unlike other cryptos, its price has only fluctuated within a narrow price range, reaching its highest in 2018 at above $0.17.
Tron is a cryptocurrency that investors should take into account because it is compatible with Ethereum and promotes quick transactions. However, given the scarcity of information about the Tron blockchain’s DeFi protocols, more thorough research is required.
