Historical reference — The original USDJ/CDP system has been discontinued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 The mechanisms and procedures described below are retained for historical reference and should not be treated as current operating instructions.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.
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.