How JunoSwap works

Welcome to this post, where we are going to see how Junoswap, the main Juno network swap, works.

It is worth mentioning that junoswap is currently in beta and depending on when you are reading this article, there may be changes in some aspects. But what we will see and most importantly, will remain the same.

Junoswap is the first and main swap that we find in this network, and that allows us to exchange cryptocurrencies of this network without the need to migrate your tokens to another network such as osmosis as it happened before.

What is Junoswap

Junoswap is a DEX, a decentralized Exchange in the Juno network that allows us to exchange any cryptocurrency found within this network. The creation of junoswap comes to solve the problem of exchanging cryptocurrencies from the network itself, which previously used the Osmosis Exchange or there was no way.

Osmosis is the main DEX of all networks based on the Cosmos network, but cryptocurrencies created on Juno were sometimes not found on Osmosis until the appearance of the first DEX on Juno.

The different networks that use Cosmos as a base usually specialize in some aspect, as we have Osmosis which is a network and a DEX, or Secret which specializes in creating a network that prioritizes privacy first and foremost. In the case of Juno, it is a network that seeks to make Smart contracts interoperable and therefore, it is its own network, based on the Cosmos network.

This makes that unlike Osmosis, where there is only one application that is currently the DEX, in this type of network, many different dapps are created in it, and therefore a DEX is needed to exchange the different cryptocurrencies that you can find in this network. The same happens in secret network, where we also find some DEX in the network. On the other hand, we have cosmos-based networks that specialize in a specific application and only have one dapp, such as persistence.

If you have used any other decentralized Exchange such as uniswap, pancakeswap or any other, the operation is very similar.

Swap

Junoswap is a DEX, a decentralized Exchange in the Juno network that allows us to exchange any cryptocurrency found within this network. The main and most used aspect is the swap. To use Junoswap we are going to use in this example the keplr wallet, which is the most used wallet for all Cosmos networks and really very useful and easy to use. In keplr, we will click on the top to change the default network, which is Cosmos, and place the Juno network.

With the keplr wallet ready and with the Juno network, we will click on the left on connect wallet to connect our wallet to the Exchange. If you have Juno in your wallet, you are ready to exchange tokens. If you want to use other tokens that are on other Cosmos networks in Junoswap, we’ll see how to do that later.

The swap is the same as any swap you can find, where at the top you indicate the token you want to use, and below the token you want to get. We indicate the amount, and in select token you will see the different tokens available in the Juno network to swap in Junoswap. Once you have selected the two tokens, for example, Juno and Rac, we indicate the amount of Juno we want to use. If you are going to use Juno to buy another cryptocurrency, always leave a small amount to pay for transaction fees.

We indicate the amount, and click on swap, confirm in our wallet and we will have the other token in our wallet. If you now open keplr, you will see in tokens how the token you have exchanged appears, in this case RAC.junoswap creation comes to solve the problem of exchanging cryptocurrencies from the network itself, which previously used the Osmosis Exchange or there was no way.

Osmosis is the main DEX of all networks based on the Cosmos network, but cryptocurrencies created on Juno were sometimes not found on Osmosis until the appearance of the first DEX on Juno.

The different networks that use Cosmos as a base usually specialize in some aspect, as we have Osmosis which is a network and a DEX, or Secret which specializes in creating a network that prioritizes privacy first and foremost. In the case of Juno, it is a network that seeks to make Smart contracts interoperable and therefore, it is its own network, based on the Cosmos network.

This makes that unlike Osmosis, where there is only one application that is currently the DEX, in this type of network, many different dapps are created in it, and therefore a DEX is needed to exchange the different cryptocurrencies that you can find in this network. The same happens in secret network, where we also find some DEX in the network. On the other hand, we have cosmos-based networks that specialize in a specific application and only have one dapp, such as persistence.

If you have used any other decentralized Exchange such as uniswap, pancakeswap or any other, the operation is very similar.

Other aspects to consider is the slippage, which is usually at 1%, and I recommend you leave it that way unless the cryptocurrency you are trying to buy or sell requires a higher slippage to be exchanged. Although Juno tokens do not usually have these characteristics.

Transfer

Here we find the way to transfer cryptocurrencies from other networks to the Juno network, and then be able to use them in Junoswap. If you have ever used Osmosis, the operation is exactly the same to transfer tokens from other networks, and be able to use them on the platform.

Cosmos-based networks have interoperability, or what you can see as IBC. This, which allows you to be able to transfer tokens from one network to another very easily, and for example, have Cosmos (ATOM) on the Juno network and exchange it on Junoswap for another cryptocurrency.

Here, simply go to the cryptocurrency you want to deposit, for example, Cosmos, and click on deposit. Enter the amount, and click on deposit. This way after a few seconds you should have that amount of in this case Cosmos (ATOM) deposited in the Juno network and ready to use in Junoswap. Then you can go to withdraw and withdraw your cryptocurrencies to their native network. In this case with Cosmos, by clicking withdraw and withdrawing your ATOMs, you would have them back on their native network, Cosmos. Although this option is not yet available, soon we will be able to use it in the same way as in Osmosis. If you don’t know how, I recommend you try Osmosis to understand how it works.

Liquidity

Here, we find the classic LP Tokens that can not be missing in any DEX to provide liquidity to the platform and allow that there are no large fluctuations in prices. Currently, we find that all LPs have an apy of 0%, since the platform is in Beta, but soon should be able to appear the real annual % of each APR you get for each different LP you deposit.

Also mention that, although at the moment you will not receive any annual %, it is very possible that they will airdrop to users who have placed liquidity to junoswap from their token once it is launched. If the token has already been launched, then you should be able to see the annual % or APR you will receive.

To provide liquidity, click on the LP of your choice. Once inside, you will see an add liquidity button, click there. Simply indicate the same amount of the two tokens of that LP, if you don’t have the same amount you can go to the swap to have it and place it. You can click on provide max liquidity to indicate the maximum you have of the two tokens. With the amount indicated, click on add liquidity, and that’s it.

Now you have deposited your LP, and you may have to stake it. To do so, click on the LP you have deposited, and on the right side you will see where you must stake your LP. Click there, indicate the amount and click on stake, confirm in your wallet and that’s it. Now you will have the LP token generating an annual %, and you will receive the tokens as a reward. To withdraw your LP tokens whenever you want, do the same process but in reverse, and finally, if you want to change any of the tokens for another.

I hope it has helped you to know in more detail how Junoswap, the main swap of this network, works. Remember that if you don’t have an account with binance, you can create one just below.