Step-by-step instructions on how to generate USDJ on JUST CDP

A quick review of Just

Stake your TRX to generate USDJ

The total value of staked TRX must be at least 150% more than that of USDJ you’d like to generate

Open a CDP before staking TRX for USDJ

Activities in CDP:

Stake TRX in the CDP you created

Generate USDJ in CDP

Topics covered in this tutorial:

In this tutorial, you are going to learn how to:

Create a CDP

Lock collateral (TRX) in your CDP

Generate USDJ in CDP

Repay USDJ in CDP

Close CDP

Open Just CDP in your web browser :

Login with TronLink:

The balance of TRX,USDJ,JST in your TronLink is available on your CDP interface. Click the button “Create CDP” in the middle:

The column to the left is where you enter the amount of TRX to be staked, and the amount of USDJ you would like to generate in the right column. Please note that the collateralization ratio should be no less than 150%, ie. The total value of TRX staked divided by that of USDJ should be at least 150%.

In fact, there are three steps happening here:

Open a CDP (where later we will stake TRX for USDJ)

Stake TRX in the CDP

Generate USDJ in the CDP

Now, we stake 500 TRX for 4 USDJ:

Users are required to stake more than 100 TRX, so we are going to deposit adequate TRX into TronLink. We then stake 500 to borrow 4 USDJ. Here’s a reminder of the platform: The number of USDJ to be generated makes your CDP vulnerable to liquidation.

To be safe, we set the number of USDJ to be generated to 2, making the collateralization ratio stand at 345.325 %, almost 200% higher than the 150% required.

Click “Stake to generate USDJ”:

A window will pop up for you to confirm, where you then check the box “I have read and accepted The Terms of Service” and click “Finalize and create CDP”.

Then we will get a message pop-up from TronLink asking us to confirm the transaction. Click Accept to confirm the transaction. Wait for the transaction to be confirmed:

After the transaction is confirmed, you will see a message saying that the CDP has been created. Then we will see the following page:

Here let’s look at some of the terminologies.

#58: This is the ID of the CDP I created is 58. Each CDP has a unique id.

Collateralization ratio: this is the ratio between the value of TRX collateral in the CDP and that of USD

Minimum ratio: define the minimum ratio for CDP to be liquidated.

Current price: market price of TRX.

Liquidation penalty: when the CDP is liquidated, a proportionate penalty fee based on the amount of USDJ generated will be charged. The fee will be deducted from the TRX collateralized in the CDP.

Stability fee: this is the interest incurred on the USDJ generated from the CDP based on an annualized borrowing rate, which should be paid by the CDP holder when closing/paying back the CDP. The fee is valued in USDJ and could be paid with JST token.

Here we can see on the right that the number of USDJ has changed to 3.99. The 2 USDJ is what we get from staking TRX in the CDP.

Deposit - Add another 200 TRX to the CDP

As mentioned before, in the operations above we actually merged 3 steps into one:

Create a CDP (later we will stake TRX into the CDP and generate USDJ from the CDP)

Stake TRX into CDP

Generate USDJ in the CDP

The later two steps can be done separately. Here we talk about staking TRX into the CDP.

Let’s go back to the previous page. Note that there are four buttons:

Deposit: deposit more TRX into this CDP; the more TRX you stake, the more USDJ you can generate; if you are not intended to generate more USDJ, you can still deposit to raise your staking ratio to stay away from the 150% mark of being liquidated.

Withdraw: opposite to Deposit, it means taking the TRX you have staked out from the CDP. Please note that you can only withdraw TRX when your staking ratio is higher than 150%.

Payback: pay back USDJ in CDP, you can pay back USDJ to increase your liquidation ratio when it is close to 150%. This operation lowers the risk of being liquidated. A stability fee will be charged when paying back USDJ.

Generate: continue to generate USDJ from the CDP. This operation will drive down the CDP staking ratio.

Now, let’s deposit another 200 TRX into the CDP. Click Deposit, enter 200 TRX in the pop-up window on the right.

Then wait until the transaction is confirmed:

After the transaction is confirmed, we’ll see that the staking ratio has increased drastically:

Generate - Generate another 1 USDJ

Generating another 1 USDJ is also simple. Click the grey Generate button and enter 1 USDJ in the pop-up window on the right. Then simply click the red Generate button.

Wait until the transaction is confirmed:

The USDJ balance in this account has increased by 1 USDJ to 3.99 USDJ:

Payback - Payback 1.0 USDJ to the CDP

Now let’s try repaying USDJ. To do this, we simply need to click on Repay. Note here that we do not have enough JST to pay the stability fee that is charged when repaying USDJ. Our recommendation is to repay debt with just USDJ (when paying stability fee with USDJ, we are actually using a smart contract to convert USDJ into JST based on JST’s market price). Choose to pay the stability fee with USDJ:

Then wait until the transaction is confirmed:

The repayment is successful:

Close the CDP

Now we need to completely close the CDP with steps including:

Repay all the generated USDJ from CDP

Pay the stability fee

Retrieve all the staked TRX

We will also choose “Use USDJ to pay the stability fee”, then click “Close”:

Once the transaction is confirmed, we can say goodbye to our CDP. Meanwhile, you will notice changes in your TRX account:

Above is how to create a CDP to generate USDJ on JUST. Open a CDP now.

Let’s get started!