What is USDJ (USDJ)?

Deep Dive

1. Purpose & Value Proposition

USDJ aimed to provide a decentralized stablecoin solution within TRON’s DeFi ecosystem. Users could lock TRX as collateral in Collateralized Debt Positions (CDPs) to mint USDJ, which was algorithmically stabilized to track the US dollar. This allowed TRON users to access liquidity without selling assets, supporting activities like lending on JustLend DAO.

2. Technology & Sunset Mechanism

The protocol used autonomous feedback mechanisms to adjust supply based on demand, theoretically maintaining the peg. However, starting May 2025, the JUST DAO disabled USDJ’s collateral utility, raised reserve requirements to 100%, and halted new minting. By August 31, 2025, all CDP functions ceased, and liquidity channels closed, marking its official retirement (JUST DAO).

3. Ecosystem Transition

USDJ’s shutdown aligns with TRON’s pivot to USDD, a hybrid stablecoin combining collateralization and algorithmic adjustments. This transition reflects broader DeFi trends toward multi-asset backing and improved capital efficiency. Users are advised to swap USDJ for USDD, USDT, or USDC to avoid liquidity risks post-sunset (CoinMarketCap Community).

Conclusion

USDJ was a foundational DeFi stablecoin on TRON, now succeeded by upgraded models. How will the lessons from USDJ’s lifecycle influence the design and adoption of future decentralized stablecoins?