The JustStable Collateralized Debt Position (CDP) is a smart contract which runs on the TRON blockchain. It is a core component of the USDJ Stablecoin System whose purpose is to create USDJ in exchange for collateral which it then holds in escrow until the borrowed USDJ is returned.
CDPs alter the total supply of outstanding USDJ, creating USDJ when new assets are leveraged and destroying existing USDJ when it is repaid to the position. This cycle of controlled minting and burning allows the contract to account for the total supply of the stablecoin, thus proving that the portfolio of backing collateral can always guarantee the value of circulating USDJ.
The amount of collateral in a CDP is always set to be significantly higher than the amount of the debt, so stability seekers who wish to use USDJ as a predictable store of value can be confident that 1 USDJ is worth approximately 1 USD in underlying assets.