The first official lending platform on TRON has arrived
JustLend, the first TRON-powered lending platform has launched today (Monday 7th December). In a medium blog article by the JUST foundation, they state that:
“JustLend is a TRON-powered money market protocol aimed at establishing fund pools whose interest rates are determined by an algorithm based on the supply and demand of TRON assets. There are two roles within the protocol, namely the depositor and borrower. Both of them can directly interact with the protocol to earn or pay the floating interest rate.”
At a point in time where digital assets connect every user in the blockchain ecosystem and where both volume and the diversity of transactions are seeing huge growth, JustLend is attempting to provide a solution to the increased demand for more precise and diverse decentralized financial services.
What is JustLend?
JustLend will first accept TRX, USDT, USDJ, SUN, WIN, BTC, JST, and WBTT as collateral for loans. Meanwhile, JustLend allows smart contracts for TRX, BTC, SUN, JST, WIN, WBTT, USDT, and USDJ to distribute jTokens that correspond to underlying assets to users’ accounts at the exchange rate. In summary, the benefits for both borrowers and lenders are:
● For borrowers: sell short an asset or borrow the right to use
● For lenders: earn interest on assets
Supplying assets on JustLend
On peer-to-peer platforms where borrowers are matched with lenders, a user’s asset is directly lent to another.
Differently, JustLend pools the supply of each user, which drives up liquidity and strikes a better monetary balance. Suppliers can withdraw assets at any time without having to wait for a specific loan to expire, theoretically allowing it much higher liquidity than their counterparts.
Assets supplied to a market are denoted as jToken (a TRC-20 token balance). and token holders can acquire the corresponding jToken by supplying and following certain rules to earn interest.
Borrowing assets on JustLend
If borrowers wish to acquire an asset on JustLend, they need to first acquire jTokens as collateral through depositing tokens, and then borrow any available asset on the platform.
Unlike other peer-to-peer protocols, JustLend only asks borrowers to specify the borrowing asset with no other requirements such as the expiry date. Borrowing is executed in real-time, and its interest rate will be automatically adjusted based on the market’s supply and demand.
In-summary
TRON’s first official lending project arguably has a shot at gaining users quickly given the big community around the TRON protocol. If, in fact, JustLend can lower the cost of trust and enable smooth and border-free circulation of crypto assets then it will be fascinating to observe as the dapp unfolds and attempts to build a sustained audience.
This article will be updated as more information becomes available about JustLend.
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