JustStable

Algo-Stables

JustStable is a decentralized lending platform that allows permissionless borrowing of the USDJ stablecoin.

Risk Rating
Watch Out
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
JustStable is one of the largest borrowing protocols that enables loans paid out in its own USDJ stablecoin, which is overcollateralized by TRX.
What we like less
The platform only accepts TRX as collateral to back USDJ, which can impact its peg stability as TRX is a highly volatile asset.
What it means for you
Offers you a simple way to borrow a decentralized stablecoin and put it to use to earn yield for you across DeFi apps on the Tron network.
Information
Exploit/Hacks
None
Info
  • Website
  • Token: USDJ
  • Tags: Algo-Stables
Key Metrics
  • TVL: $1.5B (Rank #10)
  • TVL Ranking by Algo-Stables: #0
  • Blockchain: Tron
  • Chain TVL
    • Tron: $1.54B
Risk Assessment
Watch Out
Protocol Code Quality
  • Code not reviewed by any experienced auditors
  • Public team promotes accountability
  • No documented protocol hacks since launch
Protocol Maturity
  • Core protocol launched in 2020; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 1% by total value locked reduces risk
  • Core contracts can be upgraded with just an EOA wallet
  • No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
  • Highly concentrated voting power increases risk
Protocol Design
  • No death spiral concerns
  • Robust controls to mitigate oracle price manipulation
  • Isolated markets enable asset risks to be contained to each individual pool without impacting the entire protocol
  • Solid controls in place to prevent risky borrowing
  • Basic mechanisms in place to incentivize liquidations
  • No reserves or no stability module
  • JustLend is the leading decentralized lending platform on the Tron blockchain; it currently operates in a similar fashion to Anchor by offering high yield on user deposits of USDD stablecoin
Things to know about JustStable

How JustStable works

JustStable is a decentralized borrowing protocol that allows borrowers to draw loans against TRX deposits. Loans are paid out in USDJ, a USD pegged stablecoin with a collateralization ratio of at least 130%. The DAI peg is further supported by a Target Rate Feedback Mechanism (TRFM). The TRFM triggers once the price of USDJ falls below the Target Price (1 USD) and will increase the Target Rate, thus making it more expensive to mint USDJ with TRX. The increased Target Rate also drives up the demand for holding USDJ. As such, the reduced supply and increased demand works to drive up the price of USDJ back to its Target Price. And vice versa, the same mechanism works in reverse by decreasing the Target Rate when USDJ is above the Target Price.

How JustStable makes money

JustStable collects a stability fee on all USDJ generated through its smart contracts. The stability fee is a variable-rate fee that continuously accrues to the generated USDJ by a user but must be paid in JST governance token. Once repaid, the JST will be burned and removed from the circulating supply.

How you make money on JustStable

You can deposit TRX into the JustStable to mint USDJ to be used across DeFi on the Tron network.