How JustLend works

JustLend consists of a decentralized system of lending pools. Users deposit assets they want to lend into a liquidity pool and borrowers draw from the pool when they want to take out a loan. JustLend borrowers must first supply assets before they can borrow. Given the high volatility of crypto assets, borrowers must post more collateral than the value of the loan, or commonly referred to as overcollateralization. Interest rates on JustLend are driven by market supply and demand. To facilitate this activity, JustLend issues jTokens (TRC-20 token) to lenders that reflect accruing interest on the underlying token.

How JustLend makes money

JustLend currently generates income from a reserve factor that allocates a share of borrowers' fees to the ecosystem reserve. Each supported asset has a reserve factor that determines how much goes into the reserve.

How you make money on JustLend

You earn lending fees on JustLend by depositing you crypto assets to be used by borrowers looking for leverage. JustLend also offers additional protocol incentives in its the USDD stablecoin to bootstrap demand.