Ahmadreza R.
Ahmadreza R.
Jul 06, 2022

JUST Coin: Financial Infrastructure For Everyone

tl;drJUST Coin ecosystem is a new Decentralized Finance (DeFi) platform for the TRON blockchain. A wide range of products makes up the JUST Coin ecosystem, most of which are built on the JustStable decentralised stablecoin lending platform. The platform utilises a two-coin structure based on JUST Coin (JST) and USDJ stablecoin. From a financial aspect, JUST Coin has contradicting financial metrics. Keep reading to delve deeper!
JUST Coin: Financial Infrastructure For Everyone
JUST Coin: Financial Infrastructure For Everyone
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JUST Coin In A Nutshell

TRON blockchain backs up the JUST Coin ecosystem, which is a new decentralised finance (DeFi) platform. JUST Coin ecosystem offers an array of products, mainly based on a decentralised stablecoin lending platform called JustStable. After an initial exchange offering (IEO) on the Poloniex LaunchBase platform in early 2020, the JUST Coin ecosystem was officially launched in August of that year, while its native governance token (JST) has been in circulation since May of 2020. The USDJ and JUST (JST) tokens serve as the foundation of this two-token ecosystem. While JST performs several different tasks on the platform like paying interest, assisting with platform maintenance, and taking part in governance, helping to set parameters like interest rates (stability fees) and the minimum collateralisation ratio, USDJ is a multi-collateral stablecoin whose value is pegged to the value of the US dollar (USD).

USDJ Stablecoin System On JUST Coin Platform

The core components of the JUST Coin ecosystem are the decentralised autonomous incentive mechanism and the USDJ mortgage lending system. The system is visualised in the following graph: 

Stablecoin System On JUST Coin Platform
Stablecoin System On JUST Coin Platform

How To Obtain USDJ On JUST Coin Platform?

USDJ is created when users deposit collateral assets into Collateralized Debt Positions (CDPs) in the JUST Coin ecosystem. The steps to generate USDJ are as follows: 

  1. Getting the collateral assets to be deposited: Users must exchange the TRX to be pledged for PTRX, which is the JUST Coin CDPs' only currently recognised collateral asset.
  2. Creating CDPs on the JUST Coin platform to deposit collateral assets: To build a CDP, users must send a transaction to the JUST Coin platform. Then, they need to send a second transaction to deposit PTRX, the collateral asset, into the CDP to produce USDJ.
  3. Generating USDJ through CDPs: The CDP holder sends a transaction to specify how much USDJ was produced in the CDP. An equal amount of debt will be issued, and the collateral asset will be locked up and cannot be redeemed until the debt is paid back.
  4. Redeeming the collateral: The debt must be paid back in USDJ combined with a stability charge paid in JUST Coin platform's native token, JST,  to redeem the collateral. Finally, CDP holders can send a transaction to JUST to obtain all collateral assets.

How Does JUST Coin Platform Keep USDJ Price Stable?

The starting target price for USDJ is pegged at the US dollar at a 1:1 ratio. The USDJ Target Price has two primary purposes in the JUST system, including calculating the debt-to-collateral ratio of the CDP and determining the value of collateral assets that USDJ holders will receive upon Global Settlement.

What Happens In JUST Coin Ecosystem When Market Is Unstable?

Target Rate Feedback Mechanism (TRFM) will be activated in the JUST Coin ecosystem in the case of market instability to keep USDJ in the same denomination. To mobilise market forces to ensure the stability of the USDJ price, the Target Rate Feedback Mechanism is a mechanism in which the USDJ Stablecoin System assists in adjusting the Target Rate.

What Is The Role OF Target Rate In JUST Coin Ecosystem?

People are encouraged to hold USDJ when the value is positive and lend USDJ when the value is negative because the Target Rate controls how the Target Price changes. JUST Coin platform utilises this feedback mechanism to keep the USDJ market price close to the target price, reducing the currency's price volatility and supplying liquidity during demand shocks.

What Is The Role OF the TRFM In the JUST Coin Ecosystem?

It will become more expensive to create USDJ with CDPs under the Target Rate Feedback Mechanism (TRFM) once the market price of USDJ drops below the Target Price. The demand for USDJ will rise due to a rising Target Rate, which will also boost the capital gains from holding USDJ. As a result of the decreased supply and higher demand, the market price of the USDJ will rise and return to its Target Price. The same mechanism occurs when the market price of USDJ rises over the Target Price, lowering the Target Rate and bringing the market price back down to the Target Price.

How Does JUST Coin Platform Manage Risk?

JUST Coin platform utilises an extensive risk-management mechanism for the USDJ stablecoin system to monitor and regulate any risks effectively. JST holders elect important decision-makers to control risks throughout the system through their votes. Also, JST holders can cast a joint vote to influence how the risk parameters are set up and changed. The following are the elements of risk management.

Modifying Sensitivity Parameter

In the JUST coin ecosystem, administrators have the power to modify the sensitivity of the Target Rate Feedback Mechanism (TRFM).

Modifying Target Rate

Target Rate may be modified by administrators. Actually, JST holders may set the Target Rate and Sensitivity Parameter to zero to pin the price of USDJ to the existing Target Price.

Selecting a set of trusted Oracles

Through decentralised Oracles, the JUST Coin platform obtains the internal price of the collateral and the market price of the USDJ. JST holders can limit the number of Oracle nodes and designate particular nodes as trusted Oracles. As long as more than half of the Oracles are in good working order, the system is secure.

Modifying Price Feed Sensitivity

Changes in Price Feed Sensitivity somewhat impact the internal prices of the system.

Selecting a set of global setters

The global setter is a key defence mechanism for the JUST Coin platform against attacks on the governance processes and Oracles. The mechanism determines the number of global setters required to activate a global settlement and selects a set of global setters.

Setting up parameters for risk-control

The JUST Coin system establishes a number of risk-control parameters to govern the Collateralized Debt Positions to ensure the stability of the USDJ price. All of these factors will be put to the vote and decided by JST holders.

How Does JUST Coin System Governance Work?

JST owners are primarily responsible for JUST Coin system governance. While JST holders receive income via USDJ stability fees, they are also in charge of the JUST Coin system's governance, which is accomplished via selecting legitimate proposals by JST voters. Each JST holder can vote for and choose the contract they support out of all those smart contracts that change the JUST Coin system's parameters. The proposal that receives the most votes is considered to be a valid one, and the system grants permission for it to change certain JUST Coin internal system governance variables in accordance with established logic.

JUST Coin Financial Analysis

Return On Investment (ROI) is among the most important factors when financially analysing an investment option. The data at Cryptologi.st shows that JUST Coin saw an ROI of -46% over the last year, which is not satisfactory compared to its similar projects and the market’s average ROI.

JUST Coin Popularity

JUST Coin’s Twitter account followers increased by 12% over the last six months, surpassing 63k followers. Moreover, its Telegram channel users increased by 61% over the same time frame. However, the Cryptologi.st radar chart indicates its popularity score is relatively lower than the market’s average score.

JUST Coin Market Cap and Liquidity

Financial reports at Cryptologi.st indicate that JUST Coin’s market cap rank has constantly improved over the last six months. Currently, it is ranked #131 in the market with almost $249 million. The good news is that JUST Coin’s liquidity score is 62%, above the market’s average score, making it relatively easy to sell whenever you need to cash out.

Disclaimer: Don’t take this article as financial advice. You need to DYOR (Do Your Own Research) before investment.

JUST Coin Price Prediction

The price of cryptocurrencies cannot be certainly designated because it is influenced by various market conditions. Even in such a chaotic market, it is still beneficial to look at the opinions of financial professionals regarding a potential investment choice. The following sections will discuss the JUST Coin price prediction reports from Priceprediction.net, Coincodex.com, and Technewsleader.com. Before reading the reports, you should remember that these are merely predictions, not buy or sell recommendations. A thorough investigation by YOU is required before making any financial decisions.

JUST Coin Price Prediction 2023

Coincodex.com forecasted JUST Coin to be traded at $0.03 over 2023 based on the Internet Growth method. Priceprediction.net predicted the price to be $0.073 on average, while Technewsleader.com expects the JUST Coin’s price to be $0.07 at most. 

JUST Coin Price Prediction 2024

Coincodex.com claims that the average price of each JST will continue going up and may reach $0.04 in 2024. Priceprediction.net predicted that the average trading price of JUST Coin might be $0.10, and Technewsleader.com expects the price to reach $0.11 over 2024. 

JUST Coin Price Prediction 2025

According to Coincodex.com, JUST Coin’s price would be $0.06 over 2025, while Priceprediction.net and Technewsleader.com forecasted the average trading price to be $0.15 and $0.17, respectively.

Final Remarks

It is true that the JUST Coin ecosystem provides innovative DeFi solutions for the TRON blockchain and its market cap rank saw a positive trend over the last six months. However, you should bear in mind that choosing a crypto project as an investment is a risky decision, and you need to do comprehensive research before making up your mind. Especially in this case, JUST Coin has a low popularity and performance score. Cryptologi.st does all the hard work for you and puts together all the information you need to compare hundreds of crypto projects easily. We provide comprehensive reviews, financial and social media analyses, and handy tools like a free Screener and Watchlist to streamline the comparison and decision-making process. Stay attuned for more!

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