Steemit Crypto Academy | Season 2: Week3-- JustLend - Lecture by @sapwood
Background
As usual, I have always loved to go through @sapwood's lectures, and today, I will be participating in the homework/task and I hope I am able to rejoinder the questions in the class.
(1) What are the different Markets available in JustLend, which market offers the best Supply APY, and which market offers the lowest borrow APY?(Screenshot needed)
Introduction
Defi has gotten the title of becoming the disrupting financial service the finance sector and asides from the fact that banks became very uncertain about their existence in the nearest future, as a result of Bitcoin and Cryptocurrency creation, it is now evident that the future of finance will be decentralized as Defi has affected virtually all aspect of finance.
With no middle man and using smart contracts to execute financial transactions, Defi is a choice for virtually everyone but then, its original blockchain has a downside "Gas fee". Ethereum being the practical ground for most disrupting innovations on the blockchain has given it an edge or first-mover advantage and the progenitive blockchain for services such as ICOs, use of Smart Contract, Defi, and NFTs, but then the amount it charges as Gas Fee is its downside and with this, other blockchains like Tron are in the move to make great changes and this is where JustLend comes in.
JustLend
JustLend is Tron's decentralized lending Protocol for the creation of funds for pools as well as a lending a borrowing platform. The provision of funds to pools is determined by an algorithm that is determined by the demand and supply of Tron and Tron assets.
Since Justlend isn't P2P but rather functioning on Pools, there are two roles/parties that keep the protocol functioning, the borrowers and Suppliers.
Suppliers:
The liquidity providers for pools who get jTokens are evidence of liquidity provision and earn interest for providing liquidity to the pool.
Borrowers
These are users who get loans from the pool. They require jTokens as collateral to borrow tokens from the protocol.
1
What are the different Markets available in JustLend, which market offers the best Supply APY, and which market offers the lowest borrow APY?(Screenshot needed)
There are 9 markets available on JustLend where users can supply as well as borrow tokens from. The market has a total supply of $2,344,171,865 and total borrowed of $84,184,918. The market are viz;
- Tron (TRX) market
- USDT Market
- BTC Market
- ETH Market
- SUN Market
- JUST (JST) Market
- USDJ Market
- Wrapped BTT (WBTT) Market
- Wink (WIN) Market
Tron (TRX) Market
The Tron market has a total supply of $349.70M, 12270 Suppliers, 456 Borrowers, a total daily interest of $276.81, a Reserve Amount of 60,880 at 10% Reserve Factor, supply APY of 4.64%, borrowing at an APY of 2.14%, collateral factor of 75%, a total of 310,834,756,085 jTRX tokens has been Minted and the jTRX is exchanged at 1 TRX : 99.96859762 jTRX. There are no borrowing limits and a total of $5.22M has been borrowed so far (as at the time of writing)
USDT Market
The USDT market has a total supply of $214.92M, 2333 Suppliers, 1194 Borrowers, a total daily interest of $2,861.43, a Reserve Amount of 12,352 at 5% reserve Factor, supply APY of 5.52%, borrowing at an APY of 1.78%, collateral factor of 75%, a total of 21,239,959,612 jUSDT tokens has been Minted and the jUSDT is exchanged at 1 USDT : 99.40989147 jUSDT. There are no borrowing limits and a total of $61.48M has been borrowed so far (as at the time of writing)
BTC Market
The BTC market has a total supply of $1184.73M, 652 Suppliers, 54 Borrowers, a total daily interest of $3.54, no Reserve Amount, 10% reserve Factor, supply APY of 1.35%, borrowing at an APY of 2%, a collateral factor of 75%, a total of 2,222,999 jBTC tokens has been Minted and the jBTC is exchanged at 1 BTC: 99.99323127 jBTC. There are no borrowing limits and a total of $71.64K has been borrowed so far (as at the time of writing).
ETH Market
The ETH market has a total supply of $68.35M, 709 Suppliers, 67 Borrowers, a total daily interest of $23.59, no Reserve Amount, 10% reserve Factor, supply APY of 5.17%, borrowing at an APY of 2.19%, a collateral factor of 75%, a total of 2,741,989 jETH tokens has been Minted and the jETH is exchanged at 1 ETH : 99.93869868 jETH. There are no borrowing limits and a total of $436.50K has been borrowed so far (as at the time of writing).
SUN Market
The SUN market has a total supply of $43.16M, 6143 Suppliers, 127 Borrowers, a total daily interest of $192.14, a Reserve Amount of 1,219, 30% reserve Factor, supply APY of 16.60%, borrowing at an APY of 8.16%, a collateral factor of 50%, a total of 141,145,180 jSUN tokens has been Minted and the jSUN is exchanged at 1 SUN : 99.79485527 jSUN. There are no borrowing limits and a total of $1.22M has been borrowed so far (as at the time of writing).
JUST (JST) Market
The JST market has a total supply of $158.38M, 3515 Suppliers, 66 Borrowers, a total daily interest of $2, a Reserve Amount of 27,862, 20% reserve Factor, supply APY of 4.46%, borrowing at an APY of 2.01%, a collateral factor of 60%, a total of 137,780,433,092 jJST tokens has been Minted and the jJST is exchanged at 1 JST : 99.95289363 jJST. There are no borrowing limits and a total of $45.33K has been borrowed so far (as at the time of writing).
USDJ Market
The USDJ market has a total supply of $135.65M, 747 Suppliers, 486 Borrowers, a total daily interest of $201.95, a Reserve Amount of 2,694, 5% reserve Factor, supply APY of 7.86%, borrowing at an APY of 0.59%, a collateral factor of 75%, a total of 13,340,017,055 jUSDJ tokens has been Minted and the jUSDJ is exchanged at 1 USDJ : 99.87644155 jUSDJ. There are no borrowing limits and a total of $12.97M has been borrowed so far (as at the time of writing).
Wrapped BTT (WBTT) Market
The WBTT market has a total supply of $152.80M, 3207 Suppliers, 456 Borrowers, a total daily interest of $45, a Reserve Amount of 3,076,208 at 20% Reserve Factor, supply APY of 4.59%, borrowing at an APY of 2.22%, collateral factor of 60%, a total of 2,229,961,115,302 jWBTT tokens has been Minted and the jTRX is exchanged at 1 WBTT : 99.9307666 jWBTT. There are no borrowing limits and a total of $935.60K has been borrowed so far (as at the time of writing).
WINK (WIN) Market
The WIN market has a total supply of $20.97M, 6541Suppliers, 170 Borrowers, a total daily interest of $211.87, a Reserve Amount of 51,378,318 at 20% Reserve Factor, supply APY of 17.38%, borrowing at an APY of 5.27%, collateral factor of 50%, a total of 1,681,977,470,844 jWIN tokens has been Minted and the jWIN is exchanged at 1 WIN : 99.4812144 jWIN. There are no borrowing limits and a total of $1.83M has been borrowed so far (as at the time of writing).
2
Which market offers the best Supply APY, and which market offers the lowest borrow APY? (Screenshot needed)
Wink (WIN) market is the market with the best supply APY while USDJ gives the lowest borrow APY. Win supply APY is 17.94% and USDJ being the token with the lowest borrow supply has a borrow supply of 0.60%.
How do you connect TronLink Wallet to JustLend, and How do you supply a token(e.g. TRX, SUN, JST, etc) to earn Supply APY? (Screenshot Needed)
To connect Tronlink and JustLend, one needs to download the Tronlink extension which is available for download on Chrome. To do this, you visit https://www.tronlink.org/ where you can download Tronlink for different devices as well as a Chrome extension.
screenshot from tronlink
To download, click on the Chrome extension and get directed to the chrome webstore where you can download and add the extension to the browser.
*screenshot from chrome webstore *
After downloading, one can either create a new Tron wallet or import an already existing wallet. In this post, I will be using an already existing wallet.
.png)
To import a wallet, you need to create a username for the account after which you will import the wallet via private key, mnemonic, or Keystore.
Once wallet has been added to the Tronlink extension, you can then visit https://justlend.org/ and then click on connect wallet.
A pop up with Tronlink as a preferred wallet off use will appear. You click on Tronlink
Once this is done, the wallet is added to the JustLend platform.
How do you supply a token(e.g. TRX, SUN, JST, etc) to earn Supply APY?
To supply TRX to the pool, click on Supply then add the amount of token to be supplied.
When the amount to be supplied has been provided and the supply button has been clicked on, there will be a need to approve the transaction via a signature from your wallet.
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Wait for the transaction to be confirmed, after which you would see the amount supplied display on the dashboard.
The amount of token supplied will display on the dashboard and this time, TRX was supplied. The Supply APY for TRX is
3
How do you acquire jTokens, after supplying a particular token, check your TronLink Wallet and indicate how much jTokens you have acquired? (Screenshot Needed)
After supplying a token to JustLend, you acquire jTokens (jTRX) in the case of providing TRX. jTokens serve as receipts to prove that the wallet supplied tokens to JustLend and once transferred to another wallet, the wallet automatically loses its right to its supplies.
After supplying 158.129 TRX, I got 15807.878017 jTRX.
.png)
4
How do you collateralize jTokens to borrow another asset? Borrow any asset of your choice(e.g. USDT), you can borrow a micro amount(as little as 1 USDT), include the entire process with screenshots?
- Turn on use token as collateral. This is dependent on the token you supplied (I supplied $20.57 TRX and will be able to borrow up to $15.42).
- Once the click on TRX as collateral is clicked, a pop up to confirm signature from your wallet shows up and you are required to confirm the transaction.
.png)
- After confirming the transaction, it is sent to the blockchain and will be awaiting confirmation on the chain after which it will be confirmed.
To borrow an asset, I will click on the Borrow button in the all market column on the home page (dashboard) after which the asset and the amount to be borrowed will be demanded.
A column to input the amount to borrow will pop up, and you can borrow tokens up to your limit of borrowing. It is advisable to borrow within your safe max and be sure to observe the borrow APY and be sure it is something you can bear. For me, I will be borrowing $1 of USDT.
5
How much interest did you pay, under what condition it will trigger liquidation? What is the net APY in your case? What is the Account Status(Risk Value) in your case? (Screenshot Needed)
.png)
- After borrowing $1 USDT, the interest to be paid is $1.01 which is 1.89% Borrow APY
- The Net APY to be earned is 4.34%
- My account has a low-risk status with 6.52% and will be liquidated at 100%
6
How do you repay & unlock your asset in JustLend?(Screenshot Needed)
To repay and unlock assets on JustLend, click on the asset borrowed in the "my borrow" column (USDT in my case). On the repay side, click on agree to approve and verify the transaction.
After the repayment transaction has been approved, the repayment section will be opened and at this point, the borrowed token can be repaid in part of full.
At the end of it all, my loan was paid back and I can decide to remove the supply but to do this, I will turn off my token as collateral and withdraw but I am not willing to remove my supply for now so I can receive dividends on my supply.
I am glad I am able to complete this task. Decided to give it a try and I must commend @sapwood for taking the time to explain this in a simplified manner.
Thank you for attending the lecture in Steemit-Crypto-Academy- Season 2 & doing the homework task-3.
That's correct. Although it is transferrable one should not do that. Technically jTRX is collateralized to borrow an asset, not TRX, even if the interface appears like that.
Yes, you have a good amount of supply in JustLend to earn passive income.
Feedback/Suggestions:-
Thank you.
Homework Task -3 accomplished.
[9]
Thank you very much my friend for the review, I am glad to be part of your lecture.
Wow well Explanation from you.
I really learn a lot on reading your post.
Take care.
Thanks a lot for reading through my post. It is good to have you here.