USDJ

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This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is USDJ?

USDJ (USDJ) is a decentralized stablecoin built on the TRON blockchain, launched in 2020 by the Just Foundation. It is pegged to the value of the U.S. dollar and achieves stability through a combination of algorithmic mechanisms and collateralization. USDJ is part of the JUST DeFi ecosystem on TRON, which includes JustStable and the JustLend DAO. It aims to provide a stable and reliable cryptocurrency for the DeFi ecosystem on TRON.

How is USDJ used?

USDJ is a USD-pegged stablecoin backed by collateral assets, primarily generated through decentralized smart contracts on the TRON network. It is part of the JUST DeFi ecosystem, which includes JustStable and the JustLend DAO. Here are some key ways USDJ is used:

  1. Collateralized Debt Positions (CDPs): Users can pledge TRX as collateral to generate USDJ. This process involves creating a CDP, depositing the collateral, and specifying the amount of USDJ to be generated. The collateral is locked until the debt is repaid with USDJ and a stability fee in JST.

  2. Price Stability Mechanism: USDJ maintains its peg to the US dollar through a Target Rate Feedback Mechanism. When the market price deviates from the target, the mechanism adjusts the Target Rate to incentivize market forces to stabilize the price. This ensures that the market price of USDJ remains close to its target value.

  3. Global Settlement: In the event of market instability, a Global Settlement mechanism is triggered. This allows USDJ holders to claim their collateral assets, ensuring that the stablecoin's value is maintained.

  1. Decentralized Finance (DeFi): USDJ is designed to be an integral part of the TRON DeFi ecosystem. It can be used for various DeFi applications such as lending, borrowing, and other financial services.

  2. Remittances and Cross-Border Payments: USDJ can be used for fast and low-cost cross-border transfers, making it a popular choice for international remittances.

Overall, USDJ provides a stable and reliable cryptocurrency pegged to the US dollar, making it suitable for various financial applications and transactions.

How do I store USDJ?

To store USDJ (USDJ) tokens, you can use a reliable cryptocurrency wallet that supports the TRON network. Here are the steps to follow:

  1. Download a TRON Wallet: You can download a TRON wallet from the official TRON website. There are several options available, including desktop and mobile versions. Ensure you download the official Chrome extension or mobile app to avoid any potential scams.

  2. Set Up Your Wallet: Register and set up your TRON wallet using the Chrome extension or mobile app. Make sure to keep your seed phrase safe and note your wallet address, which you will need later.

  3. Create a USDJ Address: Once your wallet is set up, you can create a USDJ address. This address will be used to receive and manage your USDJ tokens. You can use a wallet like Noone Wallet, which allows you to create a USDJ address and manage your tokens easily.

By following these steps, you can securely store your USDJ tokens in a TRON-compatible wallet.

How to buy USDJ?

To buy USDJ tokens, follow these steps:

  1. Choose a Reliable Exchange: Find a trusted centralized exchange that lists USDJ. You can refer to CoinMarketCap's Markets section to find the list of exchanges where USDJ is available. Some popular options include MEXC and other exchanges that support the TRON network.

  2. Set Up a Wallet: Download a TRON wallet, such as the Tron Wallet Chrome extension or the mobile app. Ensure you download the official version from the Tron website. Set up your wallet by registering and keeping your seed phrase safe.

  3. Buy TRON as Base Currency: If you don't already have TRON, purchase it on an exchange like Binance. Then, transfer the TRON to your TRON wallet.

  1. Select a Decentralized Exchange (DEX): Choose a DEX that supports the TRON network and your wallet. For example, you can use SunSwap if you have a Tron wallet.

  2. Connect Your Wallet: Connect your TRON wallet to the chosen DEX using your wallet address.

  3. Trade TRON for USDJ: Select TRON as the payment and USDJ as the coin you want to buy. If USDJ doesn't appear, find its smart contract address on a site like trx.tokenview.com and paste it into the DEX.

  1. Complete the Swap: Confirm the transaction details and click the "Swap" button to complete the purchase.

Alternatively, you can also buy USDJ directly on MEXC by opening an account, passing KYC, and using various payment methods like credit cards or bank transfers.

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History of USDJ

USDJ, a USD-pegged stablecoin, was created on the TRON network through decentralized smart contracts. It is backed by collateral assets and can be generated by anyone who pledges TRX as collateral. The stablecoin is part of the JUST DeFi ecosystem, which includes JustStable and the JustLend DAO. USDJ is designed to be an integral piece of the DeFi ecosystem on TRON, with autonomous feedback mechanisms to maintain its peg to the US dollar through Collateralized Debt Positions (CDPs).

USDJ is available for trading on various exchanges, including Coinbase, Bitget, and Kraken, where users can access historical price data and live charts to facilitate investment decisions. The stablecoin's market statistics, including market capitalization, trading volume, and circulating supply, are also publicly available.

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How USDJ works

USDJ is a decentralized stablecoin pegged to the value of the US dollar, operating on the TRON blockchain. It uses a combination of algorithmic mechanisms and collateralization to maintain its stability. Here's a detailed overview of how it works:

Collateralization

USDJ is backed by collateral assets, primarily PTRX tokens, which are a copy of the TRX coin. Users can pledge TRX as collateral to generate USDJ. This collateral is used to ensure that the value of USDJ remains stable and pegged to the US dollar.

Loan Mechanism

The USDJ system allows users to borrow USDJ by pledging PTRX as collateral. The loan mechanism involves the creation of a Collateralized Debt Position (CDP), which is a decentralized smart contract on the TRON network. The CDP ensures that the borrower provides sufficient collateral to back the loan.

Stability Mechanisms

To maintain the stability of USDJ, the system employs several mechanisms:

  1. Automatic Feedback Mechanism: This mechanism adjusts the supply of USDJ based on market demand. When the price of USDJ deviates from its target value, the system initiates actions to stabilize the price. This may involve buying or selling assets from the reserve, issuing or redeeming USDJ, or applying other algorithms to maintain price stability.

  2. Debt Ceiling: The debt ceiling is the maximum credit that can be generated on the system. Once this threshold is reached, no new credit can be generated, and the USDJ supply is stopped.

  3. Liquidation Ratio: This is the liquidity rate of the collateral. If the volatility of the pledged collateral is low, the liquidity rate will be low. Conversely, high-volatility collateral will have a high liquidity rate.

  1. Stability Fee: This is a commission paid by the borrower in addition to the loan amount. The fee can be paid in USDJ or JST.

  2. Penalty Ratio: If there is a surplus after an auction, the surplus of the collateral is transferred to the borrower's account. The penalty ratio determines how much USDJ is sold at auctions and how much is burned.

Governance

The JUST network, which operates USDJ, uses JST tokens for governance. JST token holders have voting rights to make amendments and revisions to the system. They can also diversify data sources, revise regulations, and set new parameters for USDJ stabilization and risk management.

Oracle Data

The JUST network receives data required by the system via Oracle. JST owners can diversify the data sources or add specific data sources, ensuring that the system remains robust and resilient.

Overall Functioning

The USDJ system operates through a combination of decentralized smart contracts, collateralization, and algorithmic mechanisms. It aims to provide a stable and reliable cryptocurrency pegged to the US dollar, making it an integral part of the DeFi ecosystem on TRON.

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USDJ's strengths

The token USDJ (USDJ) has several strengths that contribute to its stability and potential for growth:

  1. Stablecoin Nature: USDJ is a stablecoin pegged to the US dollar, which means its value is designed to remain stable and less volatile compared to other cryptocurrencies. This stability makes it an attractive option for trading and hedging against the volatility of other cryptocurrencies.

  2. Decentralized Generation: USDJ is generated through decentralized smart contracts on the TRON network, ensuring that anyone can pledge TRX as collateral to generate USDJ. This decentralized approach adds to the security and transparency of the system.

  3. Collateralized Debt Positions (CDPs): USDJ is backed by collateral assets, specifically TRX, which are deposited into CDPs to generate USDJ. This collateralization helps maintain the stability of USDJ by ensuring that there is a tangible asset backing its value.

  1. Autonomous Feedback Mechanisms: The USDJ system has autonomous feedback mechanisms, such as the Target Rate Feedback Mechanism (TRFM), which helps to adjust the Target Rate and maintain the stability of USDJ's price. This mechanism incentivizes people to hold USDJ when its value is positive and lend USDJ when it's negative, thus dampening price volatility.

  2. Governance and Risk Management: The JUST system has a governance mechanism that allows JST token holders to vote on changes to the system, ensuring that the community has a say in its development and risk management. This governance model helps to maintain the stability and security of USDJ.

  3. Integration with TRON DeFi Ecosystem: USDJ is part of the JUST DeFi ecosystem on TRON, which includes JustStable and the JustLend DAO. This integration provides a broader range of services and opportunities for users, further enhancing the value of USDJ.

These strengths collectively contribute to USDJ's potential for stability, security, and growth within the cryptocurrency market.

USDJ's risks

USDJ, a cryptocurrency project, is exposed to various financial risks. These risks can be broadly categorized into several areas:

  1. Market Risks: USDJ is susceptible to market fluctuations, which can lead to significant changes in its value. This volatility can be influenced by factors such as supply and demand, global economic conditions, and regulatory changes.

  2. Liquidity Risks: USDJ's liquidity can be a concern, particularly if there are not enough buyers or sellers in the market. This can lead to difficulties in converting the cryptocurrency into other assets or cash.

  3. Regulatory Risks: USDJ is subject to evolving regulatory environments globally. Changes in laws, regulations, or policies can impact the project's operations, usage, and value.

  1. Security Risks: As a digital asset, USDJ is vulnerable to cybersecurity threats, such as hacking, phishing, and other forms of fraud. These risks can result in the loss or theft of funds.

  2. Counterparty Risks: USDJ may be exposed to risks associated with its counterparties, such as exchanges, wallets, or other service providers. If these counterparties experience financial difficulties or security breaches, USDJ holders may be affected.

  3. Operational Risks: The project's underlying technology and infrastructure can be prone to technical issues, such as network congestion, smart contract vulnerabilities, or other operational failures.

  1. Reputation Risks: USDJ's reputation can be impacted by negative events, such as security breaches, regulatory issues, or poor management decisions. This can lead to a loss of trust among investors and users.

  2. Environmental and Social Risks: USDJ, like other cryptocurrencies, has an environmental impact due to the energy consumption required for mining and transactions. Additionally, the project may be exposed to social risks related to its usage, such as money laundering or other illicit activities.

These financial risks highlight the importance of thorough research, due diligence, and risk management strategies for investors and users involved with USDJ.

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Did USDJ raise funds?

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USDJ’s team

  • USDJ Team: The team behind USDJ includes the developers and maintainers of the TRON network, as USDJ is generated through decentralized smart contracts on TRON.

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