Risks

The JustLend DAO Protocol provides decentralized and efficient access to liquidity, empowering users across the TRON ecosystem. However, as with any decentralized finance (DeFi) protocol, there are inherent risks involved. To address these, JustLend has implemented robust risk management measures, ensuring user confidence and protocol resilience. Below, we outline the key risks and the steps taken to mitigate them.

Smart Contract Risk

Smart contracts are critical to the functioning of the JustLend DAO Protocol, but they can sometimes contain bugs or vulnerabilities in their code, which may compromise the protocol’s security or its reserve tokens. These vulnerabilities could potentially be exploited by malicious actors, affecting the integrity of transactions and liquidity.

Mitigation Measures:

• Public Code Audits: JustLend DAO's smart contract code is publicly available for external audits. It has undergone multiple professional third-party audits by recognized experts to identify and address any vulnerabilities.

• Community Review: Any proposed changes to the protocol are thoroughly reviewed and approved by the JustLend DAO community before implementation, ensuring collective oversight.

• Bug Bounty Program: To further reduce the risk of undiscovered vulnerabilities, JustLend DAO runs an ongoing bug bounty program. This incentivizes external developers to identify and report potential issues, allowing them to be fixed before they can cause harm.

Oracle Risk

JustLend DAO relies on third-party oracles to provide essential data, such as price feeds and redemption ratios for liquid staking tokens. While oracles are vital to the protocol, their reliance introduces the risk of incorrect data being provided if an oracle fails or is compromised. This could lead to inaccurate valuations and potentially harmful actions within the protocol, such as incorrect collateral liquidation or improper lending terms.

Mitigation Measures:

• Decentralized Oracles: To minimize the risks associated with centralization, JustLend DAO utilizes decentralized oracles like WinkLink, which provide tamper-resistant data feeds. This ensures greater reliability and security, as the data is less susceptible to manipulation or errors from a single source.

• Enhanced Security Protocols: These decentralized oracles are also equipped with additional security measures that further protect the integrity of the data, reducing the likelihood of inaccurate or malicious inputs.

Collateral Risk

The assets used as collateral within the JustLend DAO Protocol are subject to market fluctuations. A sharp decline in the value or liquidity of collateral could lead to under-collateralization or even bad debt, which poses a risk to both lenders and the platform as a whole. Without proper safeguards, this could lead to liquidations that do not cover the full value of outstanding loans, resulting in losses for stakeholders.

Mitigation Measures:

• Risk Service Providers: JustLend DAO partners with reputable risk service providers that continuously monitor the performance of collateral and assess the stability of the market. These services help detect potential risks early and ensure that the collateral remains adequate to cover outstanding loans.

• Risk Parameters: JustLend DAO has set key risk parameters, such as, which are borrow limit, designed to protect the protocol from sudden market changes. These parameters help ensure that collateral remains sufficient to secure the borrows, reducing the likelihood of under-collateralization.

• Governance Oversight: The JustLend DAO community and governance framework play a crucial role in adjusting these risk parameters based on market conditions. This allows the protocol to remain adaptable and respond to fluctuations in the market, ensuring a balanced and secure lending environment.

Risk Alert

Why can't I receive email notifications?

If you have enabled “Risk Alert” yet still fail to receive email notifications even when the trigger conditions are met, check the following settings:

1. Mailbox Settings

• Junk folder: Check the junk folder in your mailbox. Sometimes, email notifications can be mistakenly classified as junk emails. If you find the target notification in the junk folder, move it to your inbox or add the sender to your “Contacts”.

• Email filters: Verify if your email service provider has set filters that have blocked or filtered out the email notifications. It is important to make sure the sender’s address is added to your whitelist or allowlist.

2. Email Sending Issues

• Sending delays: Sometimes, email notifications may not come through quickly due to the delay issues. Please be patient and check your inbox again later.

• Sending failures: If your emails cannot be sent or are rejected, you may also experience difficulty in receiving email notifications. In this case, you can check your outbox about this kind of issue and try again in the JustLend platform.

3. User Information

• Incorrect email address: Make sure you have provided a correct email address in the “Risk Alert” service on JustLend DAO and have verified that your address functions well.