Steemit Crypto Academy Week 15 - Homework Post for @imagen

The innovation of cryptocurrency has proven that it has more use cases than as a method of payment. Cryptocurrencies are actually a good way to earn a living. Apart from the traditional holding and trading, cryptocurrencies can profit investors in so many different ways. I will be giving explanations on a popular platform for lending and borrowing cryptocurrencies.

JustLend

source

JustLend is regarded as the first lending platform on the Tron blockchain. It is a peer-to-peer platform that allows users to borrow and lend assets. Lenders receive interest for the assets that they contribute to the lending platform based on an APY (Annual Percentage Yield), which varies based on the situation of the Tron market.

Why I chose JustLend

JustLend is built using blockchain technology. This means that it is decentralized. Unlike the centralized nature of financial system, JustLend offers transparency. You get to know the level of risk you are taking when supplying assets to the pool.

JustLend is also very user friendly. It is easy to understand and use. The interest to be received can be tracked on this platform. The assets supplied can be taken out any time by the supplier.

Practical Illustration using JustLend

How to Access JustLend

In order to access JustLend platform, type in the url in a web browser: https://justlend.org/.

Because I am using TronLink Pro wallet for Android, I would access it using this wallet.

• Open TronLink Pro and select discover
  

• Select JustLend. You can manually type in the url: https://justlend.org/
  

• This is what the JustLend homepage looks like.
  

• JustLend supports the following assets; TRX, USDT, TUSD, BTC, ETH, SUNGOLD, JST, USDJ, WBBT, and WIN.
  

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Inorder to connect wallet,

• Select the "three parallel lines" on the top right corner of the platform.
  

• A menu would be displayed. In my case, my wallet is automatically connected because I used my wallet to open the platform. For a situation where the wallet is not connected, "Connect wallet" would be displayed. Select "Connect wallet". You would then be prompted to input your wallet address. After doing this, you are good to go.
  

Supplying Assets to JustLend Platform

• Select "supply" under TRX
  

• Input the value of tronix you wish to supply. I supplied 187trx with a given APY of 4.06%. Select "supply" afterwards.
  

• Confirm the transaction.
  

• Type in password and select "Done".
  

• Confirmation message would be received.
  

• After the above procedures, the supplied amount would be displayed on the JustLend homepage.
  

Note: The supplied amount was calculated to be $15.1. Change in market price caused the amount to reduce to $14.8 during my illustration.

My risk value is zero. This means that I face a very low chance (or no chance at all) of my assets being liqudated. I began to receive rewards after supplying my assets to the platform.

How to Receive Rewards for Supplied Assets

Rewards are received in two different contexts:

• Upcoming Rewards: Rewards under "upcoming" are automatically sent to the wallet after 7 days of receiving them.

• Frozen Rewards: These rewards are frozen for 24 weeks. The rewards are unfrozen after a week. 1/24 of the rewards are unfrozen every week. These unfrozen rewards are then moved to upcoming rewards.

Borrowing with JustLend

JustLend is also used for borrowing assets. The borrowed assets are repayed with interest based on the APY at the time of borrowing. The following are steps for borrowing assets:

• First of all, you need to supply assets and use them as collateral. Scroll down to "My Supply" and choose the asset you wish to use as collateral. Toggle option (NO) under "collateral".
  

• A pop-up would appear. Select "Use trx as collateral".

• Confirm the transaction.
  

• A confirmation message would be displayed.
  

• Go to the asset you wish to borrow. I chose trx. Select "borrow"
  

• Select the amount you wish to borrow. Confirm the transaction, and you're good to go.
  

Note:

For the verification of the smart contracts, an amount of trx was burned. In the Tron blockchain, smart contracts require energy and bandwidth to be verified. Tron blockchain offers 5000 bandwidth daily. In order to get energy ,trx needs to be frozen. If trx is not frozen, some trx would be burned inorder to obtain the energy for verification of smart contract.

^{energy and bandwidth usage for supplying trx}

^{energy usage for using trx as collateral}

^{energy usage for removing trx as collateral}

Conclusion

The JustLend platform is very easy to use even without orientation. Anybody can open the platform and do some activities without any worry. In my post, I have explained how to make your cryptocurrencies work for you by using the JustLend platform

HODL-ing is a very good strategy for investment, but in my opinion it is better to put your crypto assets to use inorder to make continuous profits in a short term.

Special thanks to @imagen.