On November 2nd, JustLend (JST) made its debut on HotsCoin. JustLend (JST) is a token market protocol built on the TRON blockchain with its primary goal being the creation of a liquidity pool. It dynamically determines interest rates based on the supply and demand of assets within the TRON network. JST tokens adhere to the TRC-20 standard and are usable within various decentralized applications (DApps) and ecosystems. JST tokens play a vital role in governing the JUST ecosystem, enabling token holders to participate in decision-making for the JUST ecosystem through proposals and voting. JustLend DAO is a core project within the JUST ecosystem, relying on JST tokens for decentralized governance. Currently, it is available for trading on HotsCoin.
HotsCoin Notes JustLend's Market Capitalization
At the time of writing this report, the circulating market capitalization of JustLend (JST) stands at approximately $326,584,951.
HotsCoin Acknowledges JustLend Protocol
JustLend is a currency market protocol based on the TRON blockchain. Its core concept revolves around establishing a liquidity pool that dynamically determines interest rates based on the supply and demand of different assets on the TRON network. In the JustLend protocol, there are two primary roles: suppliers and borrowers. They interact with the protocol to earn or pay floating interest rates.
Each currency market within JustLend corresponds to a unique TRON asset, such as TRX, TRC-20 stablecoins (like USDT), or other TRC-20-based tokens. These markets have transparent ledgers that record all transactions and historical interest rates.
HotsCoin Observes Asset Supply in JustLend
Within the JustLend protocol, users can supply assets to the market, which are marked as jTokens (TRC-20 token balances). jTokens are obtained by providing assets and adhering to relevant rules, allowing holders to earn interest by holding jTokens. An important feature is that suppliers can withdraw their provided assets at any time without waiting for specific loans to mature, enhancing JustLend's liquidity.
HotsCoin Highlights JustLend's Borrowing of Assets
Borrowing assets in JustLend is straightforward for borrowers. They need to deposit tokens to obtain corresponding jTokens as collateral, which can then be used to borrow available assets. Unlike traditional peer-to-peer lending protocols, JustLend does not require borrowers to engage in cumbersome negotiations with lenders. Borrowing occurs in real-time, and interest rates automatically adjust based on market supply and demand, allowing different assets' lending rates to change in real-time based on market conditions.
HotsCoin Notes JustLend's Collateral Value
Each market has a collateral factor that measures the borrowing capacity of a specific quantity of jTokens (collateral obtained by borrowers through provided underlying assets). A higher collateral factor indicates higher asset liquidity, while a lower factor suggests lower liquidity. This helps control borrowers' lending risks, ensuring they do not borrow excessive assets.
HotsCoin Discusses JustLend's Risks and Liquidation
To manage risks, the JustLend protocol stipulates that if a borrower's outstanding loan balance value exceeds the considered safe collateral factor (its borrowing capacity), the JustLend smart contract will automatically trigger liquidation. Liquidation aims to eliminate risks, ensuring borrowers have sufficient asset value to repay their loans while also safeguarding suppliers' assets.
HotsCoin Notes JustLend's Primary Use Cases
The JustLend protocol offers multiple use cases, including:
- Users can obtain other TRC-20 tokens by collateralizing various TRC-20 tokens they own, providing a pathway for investment and diversification.
- Shorting specific tokens: Users can borrow tokens they want to short and sell them before their prices drop, generating profits.
HotsCoin Examines JustLend's Interest Rate Mechanism
JustLend's interest rate mechanism differs from traditional finance. In traditional finance, interest is typically calculated on a daily basis, while in JustLend, interest accumulates based on the generation time of TRON blocks (approximately every 3 seconds). Furthermore, JustLend's interest rates are subject to real-time adjustments based on market supply and demand fluctuations. Different markets may have varying lending and supply interest rates that change in real-time between different market blocks. This mechanism is implemented through an algorithm to ensure that assets in the market can consistently attract supply and encourage borrowing.
HotsCoin Highlights Key Features of the JustLend Protocol
The JustLend protocol is characterized by the following key features:
- Capital Supply: It establishes a currency market fund pool, with different underlying assets corresponding to their respective markets, increasing liquidity.
- Matching: Orders are automatically matched by smart contracts, eliminating the need for cumbersome negotiations between suppliers and borrowers.
- Interest Accrual: Interest accumulates in real-time based on the time of TRON block generation, making interest calculations more efficient.
- Borrowing: Borrowing operations are executed in real-time, and as long as jTokens are held, suppliers can easily earn interest.
- Repayment: Borrowers can repay their loans at their convenience, without adhering to specific due dates.
- Supply/Borrow Interest Rates: Floating interest rates are calculated in real-time based on market supply and demand, ensuring market competitiveness.
- Liquidation: To manage risks, the JustLend smart contract automatically triggers liquidation when a borrower's collateral value falls below the liquidation threshold.
HotsCoin Explores the Architecture of the JustLend Protocol
Core Architecture:
The JustLend currency market is essentially a distributed ledger that allows users to supply or borrow assets while generating interest.
HotsCoin Examines JustLend's Core Logic
- Suppliers/Borrowers deposit assets into the JustLend smart contract's currency market, with the supplied assets being the underlying assets.
- The smart contract allocates jTokens corresponding to the underlying assets to users' accounts based on the exchange rate.
- Suppliers who supply assets to JustLend's currency market can earn interest on their loans.
- Borrowers, with excess collateralized assets as collateral, can borrow assets from the corresponding JustLend market without the need for negotiations with lenders.
- Borrowing interest on JustLend accumulates based on the number of blocks.
- Suppliers can redeem the underlying assets they provided at any time.
- Borrowers can repay their loans at any time.
- If a borrower's collateral value falls below the liquidation threshold, the JustLend smart contract will automatically trigger liquidation.
HotsCoin Investigates JustLend's Interest Rate Model
The interest rate model is a central element of JustLend, involving concepts like the exchange rate, utilization rate, supply interest rate, borrowing interest rate, and collateral factor.
HotsCoin Explains JustLend's Exchange Rate
In the JustLend protocol, each currency market is an implemented smart contract adhering to the TRC-20 standard. User balances are represented as jTokens, generated by supplying assets to the market or by exchanging. The exchange rate between jTokens and the corresponding underlying assets increases over time.
HotsCoin Describes JustLend's Utilization Rate
The utilization rate measures the efficiency of platform fund usage, with a higher utilization rate indicating that more funds have been borrowed.
HotsCoin Addresses
JustLend's Reserves
JustLend sets up risk reserves based on the income from each loan to manage risks.
HotsCoin Discusses JustLend's Borrowing Interest Rate
The borrowing interest rate is determined by utilization rates and the corresponding currency market, calculated according to different models.
HotsCoin Explains JustLend's Supply Interest Rate
Similar to borrowing interest rates, supply interest rates are determined by factors like utilization rates, calculated according to specific formulas.
HotsCoin Covers JustLend's Liquidation
JustLend requires users to provide a certain amount of assets as collateral when borrowing, and the liquidation mechanism is triggered when necessary to safeguard the interests of borrowers and suppliers.
Conclusion
JustLend is a currency market protocol based on the TRON blockchain, providing an efficient way for cryptocurrency asset suppliers and borrowers to interact. It incorporates features like asset supply, borrowing, interest accrual, repayment, and an innovative interest rate mechanism. Its decentralized nature and dynamic interest rate system offer users more financial options while reducing liquidity risk. By operating on the TRON network, JustLend brings innovation to the cryptocurrency finance space, catering to the needs of different users. In the future, the development and governance of JustLend will continue to be influenced by JST token holders, supporting the growth of the entire JUST ecosystem.
**Risk Disclaimer:** The cryptocurrency finance space carries inherent risks, and investors should carefully assess and make informed decisions. The information in this report is for reference purposes only and does not constitute investment advice. Prior to investing, individuals should thoroughly research the project and risks involved and seek professional advice when necessary. HotsCoin will continue to monitor this project's ecosystem. (Report Date: October 2023)
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