JustLend Review: Remarkable Lending Platform With Large Ecosystem
JustLend is a Tron lending protocol similar to Compound on Ethereum. Nevertheless, although Compound presently provides only low single-digit APY rates, JustLend now offers interest rates of up to 30%. Let’s learn details about this project with Coincu through this JustLend Review article.
What is JustLend?
JustLend is the first lending platform in the Tron ecosystem, with the purpose of creating pools based on the supply and demand algorithm for assets such as TRX and TRC20. The program enables customers to contribute TRX and TRC20 tokens in exchange for interest on each asset class and borrow extra tokens for other uses.
JustLend is another name for the Just platform’s decentralized lending technology.
Simply said, Just is a DeFi platform based on the TRON ecosystem’s Blockchain network. Just’s primary purpose is to give consumers all around the world a fair, decentralized financial system with reliable crypto financing and governance. Just is well recognized as one of the most active decentralized platforms on the TRON Blockchain.
JustLend formally opened the community in August 2020, after the IEO on the Poloniex LaunchBase platform, and is recognized as one of the three key products of the Just project.
The Just platform was founded by Justin Sun and introduced in Q3 2020; its name is taken from the first four letters of the founder’s name. JUST is a rapidly evolving DeFi platform that provides a broad variety of decentralized financial solutions, including JustStable, JustLend, JustSwap, JustLink, and cross-chain tokens. The TRON network serves as the foundation for the system. It uses a decentralized stablecoin system comprised of USDJ and its governance token, JST.
The network’s core decentralized financial product, JustStable, is powered by USDJ, a stablecoin coupled with US dollars and accepting different collateral. JustStable is a cross-border stablecoin lending platform where users may borrow stablecoins. Investors and traders are increasingly seeking for methods to generate stablecoins without selling their crypto assets as yield mining and trading possibilities in the crypto industry rise.
Traders must deposit their collateral in the form of backing collateral tokens in order to get USDJ fast (including TRX). After that, the asset is swapped for the PTRX token and locked as collateral, resulting in a collateralized debt position (CDP). Users may simply mint or withdraw USDJ depending on the amount of collateral placed. The platform will then repay the user for the initial collateral.
- JustStable provides consumers with the liquidity they need.
- JustLend is a money market platform driven by TRON smart contracts, where users may contribute liquidity to liquidity pools in order to borrow at cheap interest rates.
- Cross-chain tokens are assets from other blockchains that, after being encrypted on TRON, may be utilized in the JUST network. JustSwap is yet another smart contract framework for exchanging trustless tokens and creating accessible liquidity pools.
- JustLend’s UI is simple and easy to use, even for novices. The program gives a comprehensive index of tokens that have been integrated into JustLend in the Market area, making it simpler for users to make investment choices.
- Risk Meter: The gauge on the homepage of JustLend illustrates the amount of risk in borrowing your property.
- Liquidity Mining Mode: This mode provides information and enables users to supply liquidity in exchange for JST incentives from various pools.
- Let users vote: Users on JustLend may vote on product suggestions. The package includes a section where anybody can learn about and vote on the product.
Now, the JustLend Review article will take a deep dive into how the project works.
How does it work?
The generation of USDJ coins and governance through JST coins are two fundamental processes going place in the JustLend decentralized crypto lending ecosystem.
Core Architecture of JustLend
- Customers deposit monies into Smart Contracts on the platform, with the asset offered to serve as the underlying asset.
- Smart Contract: Transferring the underlying asset’s jToken to the user’s account at the exchange rate.
- Lenders: JustLend accepts money market assets in exchange for interest on loans. They have the ability to remove the underlying assets they have given at any moment.
- Borrower: In this case, the borrower will over-collateralize an asset borrowed through the protocol. Smart Contracts will automatically match loan orders as long as the market has adequate liquidity. Borrowers have the option of repaying the loan at any moment.
- Loan interest is calculated based on the number of blocks. Smart Contracts will automatically determine the floating interest rate depending on market supply and demand.
- The Smart Contract will automatically initiate liquidation if the borrower’s collateral falls below the liquidation level. Users might mortgage additional assets or pay off a portion of the borrowed assets to prevent asset liquidation.
Supply of assets
Borrowers and lenders will unite on present peer-to-peer networks, and users’ assets will be directly loaned to others. But, on JustLend, the protocol will pool each user’s supply, increasing liquidity and creating a better currency balance.
jToken is the asset delivered to the market (TRC20 token balance). Token holders may acquire the appropriate jToken by supplying and following the applicable requirements while earning interest. The primary instances in question are:
- Users may earn interest by offering tokens on the platform.
- With the platform, the assets of Dapps, institutions, and exchanges may be valued.
Borrowers who wish to borrow an asset on JustLend must first mortgage the asset to the platform and earn jTokens, then use the jTokens to trade for any asset accessible on the platform. Loans do not need a payback date; the interest rate is automatically updated based on market supply and demand; interest rates vary per property. Factors to keep in mind with loaned assets:
- Borrowers are permitted to borrow up to but not surpass the value of their collateral in order to reduce risk to the borrower of the property.
- Risk & Liquidity: If the outstanding loan amount of the borrower exceeds the collateral, the Smart Contract will immediately initiate the liquidation to remove risks and assure debt repayment and provide assets while protecting lenders.
- Use cases for borrowed assets: Users may exchange their TRC20 tokens for other TRC20 tokens. Users may sell a token before it collapses, allowing the platform to benefit from the token’s loss.
On TRON, JustLend interest is determined based on block creation time (approximately 3s). Smart Contracts will automatically compute interest rates based on changes in supply and demand, and loan interest rates may fluctuate amongst assets. When the demand for borrowing declines, the platform’s surplus tokens will have high liquidity and reduced interest rates, incentivizing borrowing. As demand for loans falls, tokens on the platform lose liquidity, and interest rates rise, motivating asset holders to lend.
Since the interest model is the foundation of JustLend, it will be linked to the following items:
- Exchange Rates: In JustLend, each asset class is represented by a TRC20 standard token, and the balance is represented by jToken, which may be created by giving it to the market or redeeming it. Exchange rates and the value of an underlying asset will rise with time.
- Use Rate: The usage rate indicates how efficiently a platform uses cash.
- Reserve: Based on the reserve factor, JustLend deducts a reserve from the revenues of each loan.
- Interest Rate Supply: The rate of supply, like the borrowing rate, is controlled by the utilization rate.
The values of various underlying assets must be used to establish the value of a borrower’s collateral or the worth of their borrowed property.
When a user gets jTokens for supplying the underlying asset to JustLend, it is known as a receipt, such as jTRX, jUSDT, JSUN,…which you obtain for delivering the appropriate asset. The TRC20 token in your wallet is called jToken.
JustLend supports all assets, which are kept and integrated using a smart contract called jToken. When a user redeems a swappable jToken, it becomes the matching underlying asset.
Four steps to creating USDJ coins from CDPs
Step 1: Transfer coins to the JustLend platform
The vast majority of users will lock up collateral to establish the USDJ stablecoin. And USDJ will be produced throughout the CDP deposit procedure. CDP (Cardapio) is a cryptocurrency that runs on Binance Smart Chain (BSC BEP-20).
JustLend now only takes PTRX as collateral; other crypto assets are not accepted. As a result, users should exercise caution when transferring coins to JustLend in order to prevent losing money.
Step 2: Set up the CDP coin
The CDP coin initialization procedure on JustLend will commence once sufficient collateral is provided. At this stage, users must initiate a transaction on JustLend in order to produce the matching amount of CDP currency. After that, you proceed with the transaction and deposit the PTRX coin into the CDP you just created, resulting in the USDJ price-stable asset.
Step 3: Create USDJ using CDP
Users who hold CDP coins must conduct a transaction in order to define the quantity of USDJ launched in the CDP. Once there, a debt is established, and the collateral is likewise secured. The lock-up period will persist until all debts have been paid off.
Step 4: Repurchase the collateral
To reclaim the collateral, the user must pay the whole amount borrowed in USDJ currency. Other charges are paid in JST tokens at the same time.
CDP coin holders get full access to the JustLand platform after paying off all obligations and interest. This process will assist the user in recovering the whole amount of the preceding collateral.
If the collateral decreases precipitously and is no longer sufficient to cover the obligations on JustLand, the system will immediately liquidate the CDP currency.
- Token Name: Just.
- Ticker: JST.
- Blockchain: Ethereum.
- Token Type: Utility Token.
- Token Standard: tRC20.
- Circulating Supply: 7,300,425,000
- Total Supply: 9,900,000,000.
- Max Supply: 9,900,000,000
- Contract: TCFLL5dx5ZJdKnWuesXxi1VPwjLVmWZZy9
- Just Ecosystem: 30%
- Partner: 26%
- Team: 19%
- Seed Sale: 11%
- Airdrop: 10%
- LaunchBase: 4%.
The JST token is currently used to vote on relevant modifications and project management. JST may also be utilized for utility reasons such as fee payment and interest accumulation.
Conclusion of JustLend Review
JustLend is a blockchain-based lending mechanism. As a result, users may entirely store JST in a wallet that supports the TRC20 token standard, such as TRON Wallet. Just’s ecosystem still need a significant amount of time to improve its features and show its potential to investors. As a result, before making an investment choice, investors must study the project on their own and weigh all risks. Hopefully the JustLend Review article has helped you understand more about the project.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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