Dear users,
Thank you for your ongoing trust and support for the USDJ protocol and JustLend DAO. Following community governance consensus, we're winding down USDJ-related markets to optimize system operations and enhance overall stability.
As always, your fund security and user experience are our top priorities. Please read the following details carefully and take timely action as needed.
As previously announced, JustLend DAO suspended USDJ supply and borrowing features in May, while USDJ DAO reduced USDJ's minting cap to 10M. Please see this announcement for full details: https://justorg.zendesk.com/hc/en-us/articles/46999264046233-Announcement-on-the-USDJ-Sunset-Plan
1. Changes to JustLend DAO:
Beginning early June (dates subject to market conditions), we'll gradually raise the USDJ reserve factor to 100%, which will end interest payments for suppliers. Simultaneously, the collateral factor will be reduced to zero, discontinuing USDJ's use as collateral. Complete market delisting is expected by the end of August.
2. Changes to USDJ Protocol:
From early June through August (dates may be adjusted), we'll progressively increase the stability fee, during which users can still repay USDJ and close CDP positions. The liquidation ratio will also be elevated based on market conditions. By the end of August, the USDJ protocol will be shut down completely, and the CDP feature will no longer be available.
3. Recommended Actions:
- Borrowers with collateralized debt positions (CDPs): The rising stability fee and liquidation ratio will lead to higher borrowing costs and liquidation risks. To avoid potential losses, we strongly recommend clearing your USDJ debts as soon as possible and closing your CDPs promptly.
- USDJ holders: As USDJ will be progressively delisted from major centralized and decentralized exchanges, there will be reduced liquidity and potentially limited exit options. We suggest that you convert your USDJ holdings promptly to avoid liquidity constraints. Before the planned sunset completion by August 31, 2025, we will actively maintain USDJ's liquidity on major decentralized exchanges, such as SunSwap, to ensure users can easily swap USDJ for USDD, USDT, or other tokens.
- Suppliers on JustLend DAO: As the reserve factor increases, your funds will no longer earn interest. At the same time, adjustments to the USDJ protocol may result in additional costs. Therefore, you are advised to withdraw your funds and repay USDJ as soon as possible.
- Borrowers on JustLend DAO: After the funds are withdrawn, borrowing rates will increase, so will the risk of liquidation. You are advised to repay your loans at the earliest time possible to reduce potential risk exposure.
While we recognize that these adjustments may cause you some inconvenience, our team is committed to ensuring a smooth, orderly, and transparent exit process. We'll offer ongoing support throughout this process.
Thank you for your understanding and cooperation. Let's work together toward a more robust and efficient DeFi future!
Feel free to contact us if you have any questions or need assistance.
USDJ DAO Team & JustLend DAO Team
Jun 3, 2025