Tron Secures Positions In DeFi With a New App JUST

Decentralized finance, or DeFi, has been one of 2020’s most debated use cases of cryptocurrencies and blockchain. As the name implies, DeFi aims at revolutionizing lending, borrowing, saving and investing activities on the blockchain with the use of smart contracts. Originally, all the DeFi applications were being created on the Ethereum network. However, the team behind Tron (TRX) has been working hard to roll out their own DeFi solution, previously known as Djed, and now renamed to JUST.

Djed rebranded to JUST

On April 4, Justin Sun announced the rebranding of Djed to JUST to celebrate the launch of the platform’s mainnet.

What exactly is JUST?

The team proceeded with explaining the reasons behind choosing the name JUST for the platform.

“JUST means “fair and just”. JUST Foundation aims to create a TRON-based stablecoins lending platform where everything is contract-based, any JST holders can participate in governing the USDJ currency system and achieve decentralized autonomy, where true justice and fairness can be guaranteed.”

As stated above, Just is the Tron Foundation’s very own stablecoins lending platform. By staking TRX coins, JUST users can generate USDJ tethered to the U.S. dollar through collateralized debt positions (CDPs). Once the USDJ is generated, it can be withdrawn and used as any other stablecoin. At press time, only Poloniex supports USDJ.

To unlock the collateral, the debt has to be paid back in USDJ and a stability fee paid with the platform’s JST token. The project’s whitepaper details the risk of liquidation on JUST:

“If a price slump of the collateral makes it at risk of being unable to cover the debt, the CDP liquidation will be triggered to auction the collateral for repayment. Any remaining value net of the debt and the penalty fee will be kept in the CDP for withdrawal.”