Supply and Borrow Market

What is jToken?

jToken refers to the "receipt" users get for supplying underlying assets to JustLend, such as the jTRX, jUSDT, jSUN and jBTC you receive after supplying the corresponding assets. jToken is a TRC20 token in your wallet.

All assets supported by JustLend, a DeFi protocol, are packed and integrated through the smart contract - jToken. Users mint jToken, which generates interest for its holders, and provide assets to the protocol. Each jToken can be swapped back into the corresponding base asset when users redeem it.

jToken share the same properties as other TRC20 tokens, such as being transferred to others or deposited into a smart contract.Your transfer of jToken to other users or institutions constitute a waiver of ownership over the assets you have supplied to JustLend.

For example:

User A supplies 100 TRX on JustLend and receives 10,000 jTRX (jToken) as a receipt, after which A transfers 6,000 jTRX to User B. Now, A only has 4,000 jTRX left (equivalent to a 40 TRX supply on JustLend), while B gets 6,000 jTRX (from A's transfer, which is equivalent to a 60 TRX supply on JustLend). If B does not transfer jToken back to A, A will no longer own the 6000 jTRX (60 TRX).(The example exchange rate here is 1 TRX = 100 jTRX).

jToken acts as a key means to interact with the JustLend protocol. While each jToken contract creates its own token market, users use jToken contracts to mint, redeem, borrow loans, repay loans, liquidate loans or transfer jToken.

What is APY？

APY is an important reference for users to understand the P&L of the current assets and loans.

APY = [∑ (Value of Supplied Token × Supply APY) - ∑ (Value of Borrowed Token × Borrow APY) ] ÷ Value of Total Supply.

What determines the Supply APY and Borrow APY?

You will notice that on the market page the APYs for supply and borrow are different. It can be seen from the justLend market page that the variation curve for the APYs supply and borrow vary from token to token, because parameters vary for each token on. JustLend. Smooth model and jump model are applied to calculate the Supply APY and Borrow APY.

What are the rules for APY calculation?

Borrowing assets from JustLend will incur borrowing interest.

The borrowing interest of a market depends on the utilization rate (U) of the market at the time of borrowing:

U = Total Assets Borrowed / Total Assets Supplied

The borrowing interest increases as the utilization rate rising. For the borrowing interest of a market at a specific time, check the Borrow APY of the market on the Market page.

In the Interest Rate Model section of a specific market, you can view the correlation between Supply APY and Utilization Rate. The blue line illustrates the relationship between the APY for supplied assets, including the base APY for jTokens and the mining APY, and changes in the utilization rate. You can move the pointer to view APY levels in respect of different utilization rates.

Supply and Withdraw Questions

Why do I have supplied assets but cannot borrow from JustLend DAO?

To borrow from JustLend DAO, you must have supplied assets and enable collateral for the corresponding markets. Please note that you can enable collateral for at most 11 markets.

Why cannot I withdraw all my supplied assets?

This may be because the assets are used as collateral or you have debt in the target market. We recommend that you repay all debt in this market and supply assets of other markets as collateral to withdraw all your assets from the target market.

Borrow and Repay Questions

Is the 80/90 risk value a must-follow threshold when I borrow from JustLend DAO?

No, the 80/90 risk value is more of a risk alert set by JustLend DAO for your account. If you want to borrow more assets that may cause a risk value higher than 80 or 90, we recommend that you supply more assets as collateral and pay special attention to the risk value of your account to prevent liquidation.

Can I choose to repay my principal before the interest?

You can pay off your debt in multiple payments, but cannot choose to repay only the principal or the interest.

What are the liquidation rule?

Your assets may be liquidated when the risk value of your account reaches 100.

The liquidator will repay your debt and charge fees equal to 108% of the debt repaid in jTokens.

The liquidator can pay back at most 50% of a user’s debt at a time, but the user’s assets can be liquidated multiple times until the risk value falls below 100.

Example:

The calculation process in this example is simplified for clarity.

Time A:

A user supplies $100 worth of SUN tokens with a collateral factor of 50% and $200 worth of USDC tokens with a collateral factor of 75% on JustLend DAO. Therefore, the user can borrow up to $200 worth of tokens (Borrow Limit = $100 × 50% + $200 × 75% = $200).

The user then borrows $90 worth of TRX tokens and $50 worth of JST tokens from JustLend DAO. At this point, the total value of tokens that this user has borrowed is $140 (Total Borrow = $90 + $50 = $140).

In this case, the user’s Risk Value = Total Borrow / Borrow Limit * 100 = $140 ÷ $200 × 100 = 70.

Time B:

While the value of SUN and USDC remains unchanged, the value of TRX and JST both has increased by 50%.

At this point, the risk value of the user’s account has changed. Risk Value = Total Borrow / Borrow Limit * 100 = ($90 x 150% + $50 x 150%) ÷ ($100 x 50% + $200 x 75%) × 100 = 105. As the value has exceeded 100, the user’s asset will therefore be liquidated.

The liquidator repays 50% of the user debt ($105 worth of TRX), and charges a fee equal to 108% of the debt repaid, or $113.4 in USDC.

After the liquidation, the assets supplied by the user are $86.6 worth of USDC tokens ($200 - $113.4 = $86.6) and $100 worth of SUN tokens.

The user’s remaining debt is $30 worth of TRX tokens ($90 x 150% - $105 = $30) and $75 worth of JST tokens ($50 x 150% = $75). At this point, the user’s Risk Value = ($30 + $75) ÷ ($100 x 50% + $86.6 x 75%) × 100 = 91.34.

As the risk value is now below 100, the user’s assets will not be further liquidated.

However, liquidation will occur if the risk value exceeds 100 again.

How to calculate the risk value?

Risk Value = Total Borrow / Borrow Limit * 100

Where:

Total Borrow = Sum of all assets borrowed by the user

Borrow Limit = ∑(Asset supplied by the user * Collateral factor of the asset)

Example:

A user supplies $100 worth of SUN tokens with a collateral factor of 50% and $200 worth of USDC tokens with a collateral factor of 75% on JustLend DAO. In this case, Borrow Limit = $100 × 50% + $200 × 75% = $200.

The user also borrows $90 worth of TRX tokens and $50 worth of JST tokens from JustLend DAO. In this case, Total Borrow = $90 + $50 = $140.

Therefore, the user’s Risk Value = Total Borrow / Borrow Limit * 100 = $140 ÷ $200 × 100 = 70.

When my account involves assets of multiple token markets, what determines the token to be liquidated?

This is decided by the liquidator, who will repay your debt in one token at a time and choose assets of a token from your collateral as fees.