# How to Borrow on JustLend: Collateral, Limits, and Steps *How to Borrow on JustLend: Collateral, Limits, and Steps* By [justlend](https://paragraph.com/@justlend), 2026-07-15 --- How to borrow on JustLend starts with supplying an asset as collateral, checking the live borrow limit, then borrowing from an available TRON money market through [the JustLend app](https://justlend.app/). JustLend DAO is a non-custodial DeFi protocol on TRON where users can supply crypto to earn interest, borrow against supplied collateral, rent TRON Energy to reduce transaction costs, stake TRX into sTRX, and participate in JST-based governance. **What Does JustLend Do for Borrowers?** ---------------------------------------- JustLend lets a borrower use supplied crypto as collateral and borrow another supported asset from protocol liquidity. In practical terms, you deposit an asset, the protocol assigns borrowing power to that collateral, and you can borrow only within the market's current risk limits. The core product is JustLend DAO's Supply & Borrow Market. Suppliers add liquidity and earn a supply APY; borrowers draw from that liquidity and pay a borrow APY. The rates are not fixed quotes from a lender. They move with market utilization, available liquidity, asset risk parameters, and governance-controlled settings, as described in the [JustLend DAO borrow documentation](https://docs.justlend.org/getting_started/concepts/borrow/). That is the whole point of borrowing on JustLend: you can access liquidity without selling the collateral asset. The tradeoff is liquidation risk. If collateral value falls, borrowed asset value rises, or interest accrues enough to push the account above its allowed risk level, part of the collateral can be taken through liquidation. **How Does Collateral Work on JustLend?** ----------------------------------------- Collateral on JustLend is supplied crypto that the protocol counts toward your borrow limit. A supplied asset does not automatically mean unlimited borrowing; each market has its own collateral factor or liquidation loan-to-value style limit. For SBM V1, the important concept is collateral factor: the percentage of supplied asset value that can count as borrowing power. For SBM V2, the interface may show market-specific collateral and LLTV-style risk terms. Either way, the logic is the same for a user: safer collateral gives more usable borrowing room, while volatile or constrained markets may give less. An illustrative borrow-limit formula looks like this: `Borrow limit = supplied collateral value x collateral factor` If a market showed a 70% collateral factor and you supplied an asset worth 1,000 USDT, the illustrative borrow limit would be 700 USDT before interest and price movement. That is not a recommendation to borrow 700 USDT. It is the ceiling before any safety buffer, and the live figure in the JustLend interface is the source of truth. **Step-by-Step: How to Borrow on JustLend** ------------------------------------------- To borrow on JustLend, connect a TRON wallet, supply collateral, enable that collateral if required, choose a borrow market, enter an amount below your safe limit, and confirm the wallet transactions. The key action is not the click sequence; it is staying comfortably below the live liquidation threshold. 1. Open JustLend and connect TronLink or another supported TRON wallet. 2. Keep enough TRX in the wallet for network resources, approvals, and contract interactions. 3. Supply a supported asset such as TRX, USDT TRC-20, or another listed market asset. 4. In SBM V1, make sure the supplied market is entered as collateral when required; in SBM V2, choose the relevant collateral and borrow market. 5. Check the supply APY, borrow APY, liquidity, collateral factor or LLTV, and risk indicator shown in the live market. 6. Enter a conservative borrow amount, review the resulting risk level, then confirm the borrow transaction in your wallet. 7. After borrowing, monitor the position. Price movement and borrow interest can change the risk level even if you do nothing. **What Should You Check Before Choosing a Borrow Amount?** ---------------------------------------------------------- Before choosing a borrow amount, check the collateral asset, borrowed asset, live borrow APY, available liquidity, and liquidation buffer. A borrow that looks fine at entry can become unsafe if collateral drops, the borrowed asset rises, or rates increase. Use this pre-borrow checklist: **Check** **What It Tells You** **Safer Strategy** Collateral factor or LLTV How much borrowing power the market gives your collateral Ensure you borrow well below the maximal limit Borrow limit The live cap based on your collateral and market parameters Maintain a robust padding (e.g., 30-50% safety buffer) Risk value or health indicator How close the position is to liquidation Keep risk value strictly in the green/safe zone Borrow APY The ongoing cost of the debt Monitor dynamic rate changes under high utilization Supply APY Yield earned by supplied assets, if applicable Treat this as a bonus, not a full offset to borrowing costs Liquidity Whether enough tokens are available to borrow or withdraw Avoid low-liquidity pools to prevent slippage/withdrawal locks TRX resources Energy and bandwidth needed for smart contract actions Rent Energy on JustLend or stake TRX to save gas fees The broader DeFi lending pattern is similar across money markets: users lend into pooled liquidity, borrowers post collateral, and smart contracts enforce repayment and liquidation rules. For background on that model, see [Investopedia's overview of decentralized finance](https://www.investopedia.com/decentralized-finance-defi-5113835) and [Binance Academy's Aave lending protocol explainer](https://academy.binance.com/en/articles/what-is-aave-aave). **What Is Liquidation on JustLend?** ------------------------------------ Liquidation on JustLend happens when a borrow position no longer has enough collateral under the protocol's live risk rules. A liquidator can repay part of the debt and receive part of the borrower's collateral according to the protocol mechanism. On JustLend, the important borrower-facing metric is the risk value or health-style indicator in the app. The relationship between total borrow, borrow limit, collateral factor, and liquidation threshold is what decides whether the position is still safely collateralized. The practical takeaway is simple: do not treat the displayed maximum borrow as a target. To reduce liquidation risk, repay part of the debt, add collateral, or borrow less in the first place. A position that borrows against volatile collateral to hold a stablecoin such as USDT TRC-20 can still be liquidated if the collateral price moves hard enough or if accumulated interest pushes the account too close to the limit. **How Do TRON Energy and Bandwidth Affect Borrowing Costs?** ------------------------------------------------------------ TRON Energy and bandwidth affect the transaction cost of using JustLend, not the borrow APY itself. Borrowing, supplying, repaying, collateralizing, and claiming are smart contract interactions, so they may consume TRON resources. TRON's official resource model defines bandwidth as the resource tied to transaction size and Energy as the resource used for smart contract computation. When an account lacks enough resources, TRX can be burned to pay for them; [TRON's resource documentation](https://developers.tron.network/docs/resource-model) gives the current mechanics and formulas. JustLend also includes Energy Rental. Instead of staking enough TRX for Energy or burning TRX every time, users can rent Energy for a receiving address and duration. The [JustLend Energy Rental docs](https://docs.justlend.org/getting_started/concepts/energy_rental/) describe rental amount, rental duration, prepayment, security deposit, and return mechanics. For active borrowers, Energy Rental can matter because failed or repeated contract interactions can make transaction costs more noticeable. **Where Do JST Governance and sTRX Fit Into JustLend?** ------------------------------------------------------- JST governance and sTRX are part of the wider JustLend DAO product, not extra steps required for every borrow. JST is the governance token, while sTRX is liquid-staked TRX that represents TRX staked through JustLend's staking system. JST holders can participate in governance over parameters such as supported assets, collateral factors, reserve factors, interest rate models, oracle settings, and risk controls. You can cross-check the token's live market page on [CoinGecko's JUST listing](https://www.coingecko.com/en/coins/just) and inspect TRON activity through [TRONSCAN's explorer](https://tronscan.org/). sTRX is JustLend's liquid-staked TRX token. Users stake TRX and receive sTRX, while staking yield can come from Super Representative voting rewards and Energy Rental revenue. Before using it, check the live APY, unstaking rules, and current contract details in the JustLend interface. **What Is the Safest Way to Think About a JustLend Borrow Limit?** ------------------------------------------------------------------ The safest way to think about a JustLend borrow limit is as a hard ceiling, not a suggested borrow amount. Your usable personal limit should be lower than the protocol maximum because markets move, interest accrues, and transaction execution can take time. A simple borrower rule is: `Personal borrow cap = live borrow limit - safety buffer` The buffer is your decision, but it should account for collateral volatility, borrowed asset volatility, rate movement, and how fast you can add collateral or repay. A conservative borrower using volatile collateral needs a wider buffer than someone using a lower-volatility setup. The JustLend app's live values matter more than any static article, because APYs, liquidity, collateral factors, and governance parameters can change. **FAQ: Frequently Asked Questions** ----------------------------------- ### **How do people usually borrow on JustLend?** People usually borrow on JustLend by supplying collateral, choosing a liquid borrow market, and borrowing below the live limit shown in the app. The smart move is to decide the risk buffer before clicking borrow, not after the position is open. ### **Can I borrow USDT TRC-20 on JustLend?** If USDT is available with sufficient liquidity in the relevant JustLend market, users can borrow it against eligible collateral. Availability, borrow APY, and liquidity should always be checked live in the app. ### **Is JustLend custodial?** JustLend is non-custodial in the DeFi sense: users interact with smart contracts from their own TRON wallet. That does not remove smart contract risk, oracle risk, liquidation risk, governance risk, or token market risk. ### **Do I need JST to borrow?** You do not generally need JST just to supply collateral and borrow from a listed market. JST matters for JustLend DAO governance, where token holders can influence protocol parameters and future changes. ### **What should I do after borrowing?** After borrowing, monitor the position's risk level, the borrow APY, collateral value, and available TRX resources. If the risk level rises, repay part of the loan or add collateral before liquidation becomes possible. [**Go to the JustLend App ->**](https://justlend.app/) --- *Originally published on [justlend](https://paragraph.com/@justlend/how-to-borrow-on-justlend-collateral-limits-and-steps)*