Trading is Mining: JSwap Finance (OKEXchain DEX)

INTRODUCTION

Between 2009 andnow, Bitcoin mining has been called a “lucrative hobby” for cryptocurrency enthusiasts. The initial rewards of earning 50BTC for every 10 minutes of mining the token was an attractive payout for many, and the boom of the crypto industry just fueled more miners to start earning their own valuations, and trade their tokens for profit.

Majority of crypto trading is done within networks like Ethereum, and the Binance Smart Chain (BSC). These platforms provide unparalleled access to crypto trading tools, transaction networks, and even NFT investments without the need for an intermediary to conduct exchanges. Whether you’re a novice player or a seasoned investor, you are most likely trading on a public chain.

Public Chains

Public chains, as opposed to Private Chains, are permission-less and offer unrestricted access to all users. Staying true to the goals of crypto, public chains are not governed by any single entity, and are unhampered by third-party intrusion. Smart contracts are put into place, ensuring trustless transactions, and are open-sourced so anybody can find and fix bugs in the code. In theory, public chains nurture a utopian, peer-to-peer financial system that cannot be easily hacked or manipulated by a single entity.

The Cryptocurrency Market is poised to grow at a CAGR of 60.2% by 2025. The public has spoken, and popular chains such as Binance, Huobi, and OKex found the need to create their own public chains: BSC, Huobi Eco-Chain (HECO), and OKexChain, respectively.

Pros and Cons

Public chains are the go-to option if you’re a regular crypto trader, as this type of chain is easily accessible to anyone with internet access and an email. Most public chains have platforms which feature user-friendly interfaces, and attractive rewards for registered users. Public chains are continuously growing, with more projects popping up to advance the DeFi landscape.

However, public chains still have their drawbacks. For one, transaction fees are often costly, and can deter users from trading in the first place. Mining, too, has become increasingly niche as environmental and machinery concerns arise. As such, mining rewards are often reserved for a relatively small population of successful miners.

JSWAP FINANCE

Jswap brings mining rewards into trading, by integrating a “Trading is Mining” concept. Jswap Finance seems like your average trading platform at first, but this protocol takes crypto a step further with its Swap Mining, which will offer trading rewards parallel to mining rewards.

Why OKexChain?

OKex recently launched their trading platform OKexChain, which leverages on the Cosmos SDK to feature cross-chain compatibility, most notably with Ethereum. While other blockchains have their own platforms, Jswap Finance is the first of its kind bringing the “Trading is Mining” concept to OKexChain. OKexChain has a huge potential for growth and is projected to run alongside big names in crypto. Jswap focuses on decentralized transactions and asset management, which aligns with “public chain for transaction” characteristics of OKexChain.

Built on the rapidly expanding OKexChain network, Jswap Finance cultivates an ecosystem where transactions can be done conveniently and efficiently. The protocol’s decision to build on the OKexChain not only sustains its usability in transactions, but also attributes to the growth of crypto as a whole.

Functionalities

Jswap supports all traditional trading functions, and more. Supported functions include Swap Mining, Liquidity Mining, DAO Dividends Pool, Single Token Vault (Machine Gun Pool), Single Token Liquidity Mining (providing liquidity for other swaps spontaneously), Stable Token Exchange, Market Charts and more, to provide a one-stop-shop for all DeFi needs.

LIQUIDITY POOL AND LP MINING: In efforts to provide liquidity, users can deposit the same proportion of two assets in a supported trading pair to gain rewards equal to 0.3% of the total transaction fee. Liquidity providers also attain corresponding LP token to pledge to the LP Mining Pool in exchange for JF tokens.

DAO DIVIDENDS POOL: Adhering to the autonomy of community and benefit sharing, the Jswap Dividends Pool makes use of smart contracts to keep distribution fair across all participants. The Jswap Team had ensured none of these benefits pass through team members for complete autonomy.

1. Anyone can enjoy dividend income by pledging a single JF currency into the dividend pool for rights. Withdrawing JF would incur a 5% handling fee.
2. 70% of total daily income within the platform is automatically distributed to the dividend pool pledger via smart contract repurchasing.
3. An invitation code must be filled out the first-time a participant activates the dividends pool function, which includes personal promotion performance where other users pledge JF on behalf of your invitation code.
4. A two-level promotion incentive system put in place, with Level-1 at 5%, and Level-2 at 3%, allows anyone to get incentives while promotion rewards will be deducted and transferred to upper level users while invited users withdraw from the dividends pool.

Advantages and Innovation

Besides the usual trading platform operations, Jswap Finance has its own unique selling points that sets it apart from similar platforms on other networks. For one, Jswap offers more rewards in trading, as previously mentioned, with their Swap Mining.

SWAP MINING: Swap Mining in Jswap is done differently from other platforms. It is a flexible reward based on the loss of each user’s transaction fee and slippage. Swap Mining supports all ecological projects on the platform, ensuring liquidity for project teams and maximizes benefits.

Swap Mining is done when a user receives corresponding governance JF tokens in the process of swapping. Swap Mining is divided into two clusters, namely Long-term Mining and Dynamic Mining:

• LONG-TERM MINING: Long-term open for mainstream currencies;
• DYNAMIC MINING: For projects on OKexChain, dynamic mining automatically turns on once the fund pool is greater than $1M, and off if the fund pool is less than $1M.

TOKEN REWARDS: Rewards from Swap Mining are also divided into two types, Full Rebate and Ordinary Rebate.

• FULL REBATE depends on the transaction fee and transaction slippage;
• ORDINARY REBATE rewards in correspondence only to the amount consumed by the transaction fee, which will be adjusted flexibly as the platform is developed.

JF TOKEN

Evidently, Jswap Finance uses their own native token with the ticker, $JF. As an essential part of the platform’s rewards system, and as the heart of the “Trading is Mining” concept, the JF token is an important portion in promoting a healthy, autonomous ecosystem.

TEAM REWARDS: 10% of unlocked mining output of community users, or 9% total, will be used for operations and technology development of the platform. This will ensure the platform is continuously growing to adapt to the needs of the current DeFi landscape.

ALLOCATIONS: As the platform’s daily income will be repurchased via smart contracts, the system automatically allocates $JF tokens as per percent distribution:

• Burned: 20%
• Dividends Pool: 70%
• Market Expansion Commission Fund: 10%

TRADING IS MINING: The more you trade in Jswap, the more $JF tokens you receive as part of their “Trading is Mining” ideology. $JF is the reward token “mined” whenever a user makes a transaction. This not only provides more liquidity to the token, but it also gives users more reason to trade and hold $JF.

Besides its utility and reward functions, $JF also acts as a Governance Token, giving holders rights to make major decisions around the platform in the name of a community-based governance system. The more $JF you hold, the higher your decision-making power.

Tokenomics

Token Ticker: JF

Total Supply: 1 billion

Early Institutional Investment: 0.5% (unlocked over 12months)

Emergency Reserves & Event Airdrop: 6%

Mining Output: 90%

Public Chain: OKExChain (deployed on testnet), BSC, Ethereum

PARTNERS AND COMPETITION

Even before its release, Jswap had already attracted the attention of major partners and capital ventures who believe the platform will shoot to the moon. Some of their partners include the well-known Sky Ventures, ICO Pantera, CryptoMarvels, ExNetwork Capital, DeltaHub Capital, Wealth Ventures, Resurgence Capital, and more.

PANCAKESWAP: Built on Binance (BSC), Pancakeswap integrates an Automated Market Model in its transactions, where users don’t trade based on an order book; rather, against the platform’s liquidity pool.

UNISWAP: Uniswap is the Ethereum equivalent and, much like the network, uses smart contracts to automatically and instantly conduct trades. One of the most popular and used options, Uniswap averages ~$1B in daily trade value in 2020, which boomed to $7.17B in March 2021.

MDEX: Mdex is a comparably new player on the Huobi Eco-Chain. Despite its relative novelty, Mdex has gained a total market value of $2.85B to date. The protocol operates on the idea of a Dual Mining Mechanism system with liquidity mining and trade mining.

Mdex has recently expanded cross-chain to BSC, and is currently a direct competitor to Pancakeswap. Its Dual-Chain Model allows for Ethereum compatibility, and has gained market dominance through its innovative technologies.

Monopolizing the OKexChain network does not guarantee complete success for Jswap, and the team behind the platform is aware that to elevate its market standing, the platform must continuously advance, instead of an unconditional linear release.

CONCLUSION

JSwap Finance is surely a tough competitor to beat, as its foundation is built with advanced technology that will only mature over time. The protocol devotes itself to decentralizing transactions, and financial management to keep ahead of its competitors. By building on OKexChain, Jswap presents the opportunity to grow as it compliments the network’s growth prospects.

If the protocol and its services live up to its potential, it should rival those of mainstream payment and transaction platforms like Alibaba’s Yu’ebao, and blockchain opponents like Mdex on HECO. We might be able to see not only $JF swaps, but the platform swapping its market position to usurp the top players, and take its place alongside seasoned options.