USDJ is a stablecoin on the TRON network pegged to the US dollar. It operates through decentralized smart contracts and collateral assets, enabling users to pledge TRX as collateral to generate USDJ. The stability of the coin is maintained through Collateralized Debt Positions (CDPs) and autonomous feedback mechanisms. The primary objective of project is to establish itself as a crucial element within the DeFi ecosystem on TRON, contributing to the overall development and growth of decentralized finance.
USDJ is an integral component of the JUST DeFi ecosystem on TRON, which encompasses JustStable and the JustLend DAO. By being part of this ecosystem, it aligns itself with a wider framework to provide stability and opportunities for users within the TRON blockchain. JustStable focuses on stability and pegging USDJ to the US dollar, while the JustLend DAO facilitates lending and borrowing activities. Together, these interconnected elements work towards fostering a robust and thriving DeFi environment on the TRON network.
Who Are the Founders of USDJ?
USDJ is created within the JUST network ecosystem and is the result of the efforts of the JUST Foundation. The foundation comprises a skilled and dynamic team that combines the expertise gained from prominent companies like Alibaba, Tencent, and IBM.
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How Does It Work?
According to its whitepaper, generating the coin involves depositing collateral assets into Collateralized Debt Positions (CDP). Users start by converting TRX to PTRX and then proceed to execute transactions on the JUST platform to create a CDP and deposit PTRX as collateral. When users generate the coins through a transaction, an equivalent amount of debt is also created, and the collateral assets are locked until repayment, rendering them inaccessible for redemption.
USDJ maintains a peg of 1-to-1 with the US dollar to ensure price stability. In times of market volatility, a Target Rate Feedback Mechanism (TRFM) is employed to maintain it’s stable denomination.
What Makes It Unique?
If the USDJ price received from Oracles deviates from the real US Dollar rate, the JUST system has implemented a global settlement mechanism to mitigate potential risks and damages. This process involves three main steps to ensure fair and accurate resolution:
Firstly, the global settlement mechanism is triggered, restricting CDP holders from creating or modifying their positions. During this time, the price feed is maintained at a fixed value to ensure proper processing of all user claims.
Secondly, keepers within the JUST system utilize the price feed to conduct decentralized auctions of all debt and collateral assets. This auction process allows for the settlement of claims from USDJ and CDP holders.
Lastly, USDJ and CDP holders can file a claim petition on the JUST platform to exchange their USDJ or CDPs for a fixed quantity of TRX based on the Target Price of the token. There is no specified deadline for users to initiate this claim process.
The USDJ stablecoin system has implemented a comprehensive risk-management program to manage risks effectively. JST holders, who participate in the JUST governance system, have complete control over critical decisions to regulate risks within the ecosystem. These measures include adjusting sensitivity parameters through the Target Rate Feedback Mechanism (TRFM), modifying the Target Rate, selecting trusted oracles, and implementing other security mechanisms outlined in the official whitepaper.
How Many USDJ Coins Are There in Circulation?
At press time, USDJ is trading at $1.13 per coin and has a circulating supply of 273,293,456 coins, a current CoinMarketCap ranking of #220, and a live market cap of $301,403,298.
How Is the USDJ Network Secured?
USDJ is an ERC-20 token built on the Tron blockchain, which operates on a delegated-proof-of-stake (DPoS) consensus mechanism. This blockchain utilizes a network of 27 super representatives (SRs) elected by token holders through an open voting process. These SRs play a crucial role in verifying transactions and securing the network, making Tron a scalable and efficient platform for issuing and using USDJ.
Where Can You Buy USDJ (USDJ)?
You can buy USDJ through centralized exchanges, including Kucoin, Huobi, Poloniex, and MEXC. These platforms provide a convenient way to buy and sell the coin in a secure and regulated environment. Additionally, the coin is also tradable on decentralized exchanges like Sunswap V2 for users who prefer a decentralized approach. This option allows individuals to interact directly with the Tron blockchain and maintain full control over their funds during trading. Whether you choose a centralized or decentralized exchange, USDJ offers flexibility and accessibility for those looking to participate in the ecosystem.