This article is sponsored by Tron.
While most people may think DeFi has gone into hibernation after the bull market, the sector has been continuously building and growing at a steady pace. Particularly on the Tron network, DeFi TVL has increased by 96% between December 2022 to December 2023.
At the top of all DeFi protocols on Tron is Just Network, which accounts for almost 90% of DeFi TVL on Tron. With plenty of enthusiasm surrounding Just Network from within the Tron community and beyond, let's dive deeper into Just Network and its suite of financial products.
What Is the Just Network?
Just Network is not just an individual protocol but a platform that hosts a variety of DeFi protocols built on Tron that are closely integrated with one another to form a robust ecosystem. With close to $13 billion in locked crypto assets as of December 2023, Just Network has become the premier destination for DeFi activities on Tron, as well as connecting the network to the rest of the multichain universe of the crypto space.
Built and governed by its own community, users can execute transactions through Just Network in a permissionless manner without going through or requiring approval from any third party. Additionally, Just Network’s existing protocols are composable with one another, allowing for the creation of more complex and efficient Dapps or strategies on top of its core DeFi primitives.
As Tron Network’s flagship DeFi product, Just Network is also built to support stUSDT, a Real-World Assets (RWA) product that enables investors to gain exposure to traditional financial assets such as US treasuries and short-term government bonds. In partnership with the RWA DAO, Just Network has been entrusted to govern the RWA DAO platform and support operations related to stUSDT. By incorporating stUSDT with Just Network’s line of products, users can supply and borrow their stUSDT for other native tokens on Tron, such as TRX and BTT.
Key Products of the Just Network
Focusing on core DeFi primitives for newcomers and veterans in crypto alike, Just Network features a variety of protocols that allow users to make the most out of their crypto holdings. By utilizing these protocols, users can perform various complex strategies based on their risk tolerance. At the time of writing, Just Network currently features four distinct products:
JustLend DAO
Source: JustLend DAO
Lending protocols are a major part of DeFi systems across any network, and JustLend DAO is no different. JustLend DAO is a money market protocol that allows users to supply idle assets, earn interest, and obtain leverage by borrowing other crypto assets. Using smart contracts, lenders and borrowers automatically accrue or incur a floating interest rate, which is algorithmically determined based on the supply and demand of the particular asset on JustLend DAO. On top of the interest earned from supplying assets on JustLend DAO, users can earn additional rewards in the form of USDD.
When users deposit their funds to the protocol, they are held in a pool operated by smart contracts. In exchange, the depositor receives interest-bearing jTokens, which represent the depositor’s share of the pooled assets. Once held, interest earnings are automatically accrued to the depositor’s wallet and can be redeemed after the funds are withdrawn from JustLend DAO.
For borrowers to leverage on funds from the pool, they would first have to deposit their assets into the protocol as collateral. Like most decentralized lending protocols, JustLend DAO loans are overcollateralized, which means that borrowers will have to commit collateral that is worth more than the borrowed amount. Depending on the type of assets used as collateral, users may only borrow up to a certain amount based on the asset’s collateralization ratio.
From the mixture of supplied and borrowed assets, a user’s health factor can be determined based on the value of their collateral against their outstanding loans. If the borrower’s collateral value starts to fall below their outstanding loan amount, JustLend DAO will automatically liquidate a portion of the borrower’s collateral to repay the loan, protecting the protocol from bad debts.
Given the volatile nature of crypto, asset prices can swing wildly in either direction within a short time period. As such, lending protocols constantly require reliable oracles that are able to provide the most accurate price fees in real-time. To combat the risk of the protocol going insolvent, JustLend DAO utilizes Winlink’s decentralized oracles, paired with a ‘smoothing mechanism’ to mitigate risks from short-term price fluctuations.
JST Token and the JustLend DAO Governance
Source: JustLend DAO
JST is the native token of the Just Network protocol and is used by the community to govern the JustLend DAO. JST holders can submit and vote on proposals regarding the development and administration of the protocol. The DAO protocol operates through a governance module, with time-based procedures to ensure that every proposal is properly scrutinized, voted on, and executed if it is passed.
Before proposals are submitted, discussions will be held through the JustLend DAO forum. If there are little to no objections, users who hold more than 200 million JST may submit their proposal for voting. Anyone with JST may then cast their votes at a 1:1 ratio based on their holdings. If most participants agree with the proposal and reach a quorum of at least 600 million votes, the proposal will be passed and implemented after two days.
JST’s utility extends beyond the JustLend DAO, functioning as the native token for other protocols within the Just Network ecosystem. In 2022, JST was granted statutory status as an authorized digital currency and medium of exchange in the Commonwealth of Dominica. To further grow the value of JST, the JustLend DAO has also unveiled plans to commence a buy-back-and-burn program. Additionally, the JustLend DAO has also partnered with the RWA DAO to redirect yields from stUSDT to the JST/TRX liquidity pool on SunSwap to promote further growth of the JST token.
JustLend Energy Rental
Source: JustLend
Unlike most networks, transactions on Tron require the use of Energy units, accessible solely through staking or burning TRX, a process that may be complex for the average user. As such, besides offering the ability to lend and borrow tokens, JustLend has also introduced an Energy Rental system that allows users to rent Energy at a cheaper rate.
Depending on their network usage, users can select the amount of Energy they wish to rent and the rental duration through a simple interface that automatically calculates the amount of TRX required as payment, including a prepaid amount and a security deposit. Energy units are replenished on a daily basis, and additional costs may be deducted from the security deposit if the rented amount of energy has not fully recovered. If users choose to end their rental prematurely, their prepaid amount will be refunded. However, users will have to manually end their rental on time and fully recover their used Energy to receive their initial security deposit back.
JustStable
Source: JustStable
JustStable is a stablecoin protocol that allows users to mint the protocol’s own overcollateralized stablecoin, USDJ, with Tron’s native TRX token. As its name suggests, USDJ is a stablecoin pegged to the value of the US dollar at a 1:1 ratio and claims to be completely backed by TRX collateral, which can be verified on-chain.
To mint USDJ, TRX holders have to create a collateralized debt position (CDP) using the JustStable portal, where they must stake enough TRX tokens with at least 150% of the total value of USDJ they want to generate. Once USDJ is minted, it can be transferred and traded like any other crypto asset. Through its integration with Just Network’s other protocols, users can choose to deposit USDJ to earn a leveraged yield on JustLend DAO. Non-TRX holders can also skip the hassle and directly borrow USDJ using other forms of collateral.
While USDJ has remained off-peg for some time, it has served as a store of value and a more stable source of liquidity to the various dApps on Tron. However, its utility transcends its native blockchain, allowing anyone to spend and trade USDJ on any supported network or exchange that supports it.
Just Cryptos
Source: Just Cryptos
Just Cryptos is a bridging protocol for the Tron network, making it possible for users to transfer their funds between Tron and other blockchains, such as Bitcoin and the Ethereum network. The platform currently supports five bridged assets – Bitcoin, Ethereum, Litecoin, Dogecoin, and APENFT – which are stored on the Tron blockchain and can be transacted as normal Tron network tokens. The storage addresses for each bridged asset are publicly available and can be easily confirmed by everyone.
Unlike conventional cross-chain bridges, users are unable to directly interact with Just Cryptos to bridge their assets directly to Tron. Instead, bridged tokens can be accessed from the centralized exchange Poloniex. Users can purchase or deposit the assets on their Poloniex wallets and then withdraw them to their Tron wallet address.
Conclusion
Leveraging fast transactions and low transaction fees, the Tron Network has what it takes to create a thriving DeFi ecosystem. Just Network offers a comprehensive solution for newcomers and veterans alike. With some of the most popular dApps on Tron, Just Network has not only become a gateway for exposing users to the benefits of the network but also allows them to shape the future of Tron’s DeFi space through governance.
While JustLend DAO and JustStable are core primitives that underpin the current state of Tron’s DeFi ecosystem, Just Cryptos connects the Tron network to the wider multichain space. As the Just Network ecosystem continues to grow, Just Cryptos will play a pivotal part in attracting more liquidity and assets for communities and developers to build upon. Ultimately, each part of Just Network’s core offerings, combined with their interoperability, will set the stage for Tron’s next wave of DeFi products.
CoinGecko's editorial team comprises writers, editors, research analysts and cryptocurrency industry experts. We produce and update our articles regularly to provide the most complete, accurate and helpful information on all things cryptocurrencies. Follow the author on Twitter @coingecko
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