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Professor @sapwood examined JustLend, the lending and borrowing platform, to the finest detail this week. As always, he asked us more difficult questions. I read the course article thoroughly and now I'm eating my homework.
[P](snappa.com)
**(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)**
We can log in to the platform via the web address below.
https://justlend.org/#/home
When I log into the platform, I can see that there are 9 different markets. These markets are; TRX, USDT, BTC, ETH, SUN, JST, USDJ, WBTT, WIN.
ALM rates arise from the supply and demand balance. If the loan demand is high and the borrowing demand is low, the interest rate is low. On the contrary, if the loan demand is low and the borrowing demand is high, the interest rate is high.
The best Supply APY ratio in the JustLend platform belongs to the SUN market with 17.42%. The lowest Barrow APY rate is 0.69% for the USDJ market.
In the best Supply APY market, there is not much difference between WIN and SUN market. They are very close to each other.
A careful user will notice that APY rates change in a very short time. This is because the interest is replenished according to the block generation time on the Tron blockchain. Block creation time in Tron blockchain is 3 seconds. In other words, the interest rates are renewed 1 in 3 seconds according to the demand (also many criteria). In traditional financial systems this is usually daily.
**(2) 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)**
In order to benefit from the JustLend platform, to access or interact, it is necessary to have a TronLink wallet, one of the decentralized crypto money wallets.
TronLink wallet setup is very simple. It is more convenient to use it, especially by adding extensions to the chrome browser.
To start the installation, we log in to tronlink.org. Then we click on the places I marked respectively.
We click on the place I marked and TronLink is added to Chrome as an extension.
We determine the password, then we confirm the password. We move on to the next step.
We click on the place I marked to create a new wallet. To restore our existing wallet, we must use the option below.
In the next step, we set the username. Like steemtht for example.
We need to store the 12-word seed key securely. If you forget the seed key or run into a security issue, you risk losing all your funds. In the next step, you need to approve the seed keys consisting of 12 words.
In order to perform transactions such as lending and borrowing on the JustLend platform, there must be enough funds in our TronLink account. In addition, there are gas fees in smart contracts. Gas fees on the Ethereum network are quite high. Almost equal to a plane ticket :) In the Tron network, gas fees are low and transactions are at the speed of plane :)
I am sending 100 TRX to my TronLink account for free. Transfers are free on the Tron network, but some gas fees are required when making a smart contract.
I am logging in to the web address https://justlend.org/#/home. My TronLink wallet is actively open. I click on "Supply" at the bottom right. My chosen market is TRX. There must be crypto money in our account for the market we choose.
Supply amount: 50 TRX
APY rate: 4.51%
Then I click on the place I marked below.
I click where I marked and the action is confirmed.
I can see all the details in the My Supply section.
**(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)**
I clicked on the place I marked.
I have 4998 jTRXs in my TronLink wallet.
I got jTRX for supplying TRX.
If I had supplied WIN, I would have obtained jWIN.
jtoken allows us to borrow / borrow credit on the platform. We cannot get credit on the JustLend platform without having jtokens.
**(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?**
I decided to borrow USDJ.
I can't compromise USDJ. Because I did not perform the collateralization.
I have to shift to the right, yes.
I am entitled to borrow 75% of the total supply. $ 6.02 * 0.75 = $ 4.51
To start the collateral process, I click on the above image where it says "Use TRX as collateral".
I agree.
Collateralization process is completed. I'm going back to the market now. I want to borrow USDJ.
I chose USDJ because the Barrow APY rate is very low. USDJ Barrow APY = %0.67
I could borrow 3.44 USDJ but I didn't choose that. Because I wanted to keep the risk below 50%. When the risk reaches 100%, assets are liquidated. To prevent this, either the risk should be kept low or new assets should be procured and collateralized. To borrow it, I clicked on the place I marked.
You must have some TRX in your account to confirm the borrowing. While transfers are free in the Tron network, there are gas fees in smart contract transactions. As you can see on JustLend, 1.5 USDJ was reflected in my account. At the same time, when I checked my TronLink wallet, I saw that 1.5 USDJ was in my account.
**(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)**
I paid $ 0.01 interest. This is refreshed every 3 seconds. As the Tron network block generation time is 3 seconds.
My risk is low. Risk value 34.79%.
In high risk situations, your assets may be liquidated. When the risk value reaches 100%, the liquidation process is started. To prevent this, you should keep your risk status below 50% or you should procure and collate additional assets and lower your risk situation.
Net APY 4.40 %
I supplied 50 TRX.
I borrowed 1.5 USDJ.
Although I have received credit, the overall picture is positive.
**(6) How do you repay & unlock your asset in JustLend?(Screenshot Needed)**
I click where it says My barow.
I prefer the places I have marked. I accept the contract.
I click the place I marked. I click the place I marked. I accept the contract.
After this transaction, interest is paid and the loan is returned.
I am also doing the process for "my supply" section. I click on the places I marked respectively. I sign the contract. The transaction ends successfully.
As a result, I have penny-level assets remaining on the JustLend platform. The risk value has increased significantly. My assets with a penny price will be liquidated after a while / after a negative market fluctuation.
**Conclusion.**
I had known JustLend before, but had not tried it. By practicing now, I learned the finest details about JustLend. Decentralized finance is getting more and more popular every day. That's why we need to learn decentralized financial products down to the finest detail.
Cc:
@steemitblog
@sapwood
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