Tron founder and prominent crypto industry Figure Justin Sun went to the social media platform X to make optimistic claims about the future of JST (Just), the management of the righteous ecosystem. In A recent messageSun stated that JST has undergone a “full fundamental reversal”, and suggested that it could be the “next 100x token” as the Tron-based Defi landscape matures.
The rise of JustLend and USDD
Central to Sun’s argument is the performance of JustLend, a permissionless credit platform built on the Tron Blockchain and incubated by JST. Since the launch, JustLend has grown into one of the largest credit protocols in the Tron ecosystem, so that users can borrow and borrow native assets through decentralized liquidity pools.
The platform works in the same way as Compound of Aave on Ethereum, but with the extra benefit of Tron’s high transit and low transaction costs. According to Sun, the growth of JustLend has been translated into tens of millions of dollars in net profit, with interest rates for lenders who sometimes reach up to 30%.
Another ecosystem pillar is USDD, a decentralized stablecoin incubated by the Just Platform and Tron Dao Reserve. According to Sun, USDD has seen ‘explosive growth’, quickly became a commonly used stablecoin in the Tron network and beyond. Integration with loans and Defi platforms has accelerated approval, which further stimulates the usefulness and demand for JST.
JST a ‘Combinatie of Tron’s Aave and MKR’
Sun compares the evolving role of JST with a combination of Aave and Makerdao’s MKR. JST is used for governance decisions within the just ecosystem and plays a key role in the issue and management of stablecoins and loan pools. According to Sun, the annual net profit for the ecosystem has already reached tens of millions of dollars, with a “conservative income prediction” of more than $ 100 million in turnover for the coming year.
Perhaps the most striking, Sun has committed itself to using all the profit to buy back and burn JST tokens “at the right time.” This deflatory mechanism is designed to reduce circulating delivery and possibly increase the value of remaining tokens, a strategy that has been successful for other Defi projects.
The success of JustLend and USDD shows the ambition of Tron to match Ethereum’s defi-dominance, and offers attractive yields and a user-friendly experience. If they continue their upward trajectory and the promised return and-burn program is implemented, JST could certainly appreciate. As with all crypto investments, invest dyor and only invest what you can afford to lose.
