Historical reference — The original USDJ/CDP system has been discontinued
This article describes the original USDJ/CDP system, which was shut down on November 17, 2025. The mechanisms and procedures described below are retained for historical reference and should not be treated as current operating instructions.
For updated fund-handling arrangements and exchange options, please refer to Updates on Handling of Funds Not Timely Returned Following USDJ System Shutdown.
Reducing liquidation risk under the historical USDJ/CDP rules
Before the system was discontinued, a CDP holder could improve the collateralization ratio in two main ways:
- Add collateral: Depositing additional TRX without generating more USDJ increased the collateral value relative to the outstanding debt.
- Repay part of the debt: Returning USDJ to repay part of the outstanding debt, while keeping the collateral in the CDP, reduced the debt and increased the collateralization ratio. A stability fee applied when repaying debt under the historical rules.
The collateralization ratio was calculated as collateral value divided by outstanding USDJ debt value, multiplied by 100%. A decline in the collateral price could lower this ratio. Withdrawing collateral without reducing debt could also lower the ratio and increase liquidation risk.
Repayment and collateral redemption
To close a CDP and retrieve all collateral under the historical process, the holder needed to repay the outstanding USDJ debt and settle the applicable stability fee. Full redemption was different from adding collateral or making a partial repayment to manage the risk of an open position.
If a CDP became eligible for liquidation under the historical system rules, the system could liquidate its collateral to repay the debt. Any remaining collateral after debt repayment and the liquidation penalty could be collected by the holder.
These historical actions are no longer available through the discontinued USDJ/CDP system. For current fund-handling arrangements and exchange options, use the official update linked above.