An Introduction to Tron (TRX) DeFi

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If nothing else Tron is certainly a unique Crypto Currency, it's often advertised as having no fees and that's true for the most part. Instead of the usual method of using a certain token to pay for token transfers and smart contracts it uses "Bandwidth" and "Energy". The former is used for token transfers and as such isn't very important to the topic at hand. The name of the game for DeFi is of course Smart Contracts and they use Energy and while each wallet is allotted a total of 5000 free Bandwidth meaning that simple transactions don't have any real fees unless you run out of Bandwidth, you are not afforded the luxury of getting any free Energy. Instead there are three ways of obtaining Energy namely freezing TRX, renting Energy or allowing the Smart Contract to burn TRX in your wallet for Energy.

There are however a few problems with each of these methods, freezing TRX doesn't get you a lot of energy, certainly not enough to actually make use of smart contracts. The second and third method have a different problem, namely that it doesn't tell you how much Energy is needed for any given Smart Contract. If I choose to rent Energy I'll have no idea how much I'll need to get, if I choose the latter method I'll have no idea how much TRX will be burned if I make use of a Smart Contract. 

And that brings me back to what I wrote at the beginning, the idea that it doesn't have any fees is mostly true but the realty of the situation is that Smart Contracts use a lot of Energy and as a consequence the fees associated with using Tron DeFi sites easily eclipse those of some of the alternatives such as BSC. On top of that the fact that you don't know how high the fees will be until you use a Smart Contract makes it somewhat less attractive than the aforementioned BSC.

None of this is to say that it's bad, just that you should be prepared for these things if you choose to try your hand at Tron DeFi. 

To sum things up in a few short points and give a few tips.

-Energy can be obtained through Freezing TRX, renting Energy by paying for it or allowing TRX to be burned

-Smaller investments may not be feasible, you should get at least a few hundred TRX if you want to try it out

-You should set aside 50-100 TRX to pay for fees

-There are a lot of scams on Tron, if you receive a bunch of Tokens that you never asked for it's best to just ignore them

-Obviously DYOR before choosing any DeFi site to put money into

If you are nonetheless interested in Tron DeFi I'll list the main DeFi sites below

JustSwap

JustLend

Sun.io

 

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