Borrow

The JustLend DAO offers user an efficient way to access liquidity by using their supplied assets as collateral. This approach unlocks capital without requiring users to sell their holdings, making it a powerful tool for managing financial needs. However, borrowers must remain vigilant about potential risks, especially liquidation.

How it works

Borrowing on JustLend DAO is simple and dynamic. Users can leverage their deposited assets to borrow tokens, with interest rates determined by the protocol’s utilization rate—the percentage of supplied liquidity currently borrowed. As borrowing demand increases, utilization rates rise, leading to higher interest rates. This dynamic adjustment ensures a balanced ecosystem that benefits both borrowers and suppliers.

1. Dynamic Interest Rates Interest rates are influenced by protocol mechanics and community governance, adapting to changes in borrowing activity. This system allows the platform to respond effectively to market conditions.

2. Reserve Parameters Each reserve in the JustLend DAO Protocol is designed with specific parameters to attract both borrowers and suppliers, ensuring a steady flow of liquidity.

3. Liquidation Risk Borrowers face liquidation if their risk value over the required threshold. To mitigate this, it’s essential to monitor collateralisation levels and maintain a healthy health factor.

How Do I Borrow Assets

Borrowing can be done with a user interface JustLend SBM. Before we walk through the steps of a borrowing sequence, let’s cover some key parameters:

• Borrow APY: the cost of borrowing assets in the JustLend DAO Protocol, which can vary based on the overall utilization of the liquidity pool；

• Total Borrow: the total borrow amount in the market. As the total borrow changes, the borrow APY will also change accordingly;

• Borrowers: the amount of users participating in the borrow market;

• Collateral Factor: the amount of asset you can borrow compared to the value of jTokens you own. It determines the maximum amount you can borrow based on your supplied asset in this market;

• Borrow limit: the minimum amount required to participate in the borrowing market;

• Liquidation: a borrowing account becomes insolvent when the borrow balance exceeds the amount allowed by the collateral factor. Other users can repay a portion of its outstanding borrow in exchange for a portion of its collateral, with a liquidation incentive.

Borrow Assets：

1. Connect your Web3 wallet on TronLink or other supported wallet app to the JustLend DAO (https://justlend.org).

2. Navigate to the "SBM" and choose the asset you want to borrow from the supported assets listed on the markets. For example, if you want to borrow TRX, click 「Borrow」 on the TRX market.

3. Specify the amount you want to borrow and confirm the transaction.