JustLend DAO launches Supply and Borrow Market V2 with isolated lending architecture

JustLend DAO has launched Supply and Borrow Market V2, introducing an isolated lending framework and a new interest rate model designed to improve capital efficiency and risk controls across its decentralized lending platform.

According to JustLend DAO’s announcement on June 17, the upgraded protocol replaces the previous structure with a dual-layer system built around Vaults and Markets. The release, which took effect on June 17 Singapore time, forms part of the platform’s latest effort to improve how liquidity is distributed while limiting the impact of risks tied to individual collateral assets.

Under the new design, users can deposit a single asset such as USDT into a Vault, which acts as a central liquidity pool and distributes funds across multiple lending markets. Depositors earn returns generated from all connected markets, with interest automatically aggregated through the Vault structure.

Borrowers, meanwhile, interact directly with individual Markets by pledging approved collateral assets and borrowing funds against them. Each Market operates independently, a setup that JustLend DAO said prevents problems in one collateral market from affecting others and reduces the possibility of contagion spreading across the protocol.

New interest rate model introduced

Alongside the architectural changes, JustLend DAO has rolled out an Adaptive Curve Interest Rate Model, an updated version of the Jump Curve model previously used in Supply and Borrow Market V1.

The protocol explained that borrow rates no longer rely solely on a fixed utilization threshold. Instead, the entire rate curve can move up or down depending on market conditions. When utilization remains below target levels, borrowing costs decrease to encourage loan demand. During periods of elevated utilization, rates rise to promote repayments and improve liquidity availability.

According to the announcement, the mechanism is designed to keep utilization closer to target levels while maintaining stable borrowing conditions across markets.

Risk controls also receive a substantial update under the new version. JustLend DAO said each market now maintains its own lending parameters, including loan-to-value settings, allowing liquidation events or collateral price declines to remain isolated within a single market rather than affecting the entire lending system.

JustLend DAO added the latest changes are intended to provide a more efficient and secure lending experience while supporting continued growth across the platform’s decentralized finance ecosystem.

The upgrade arrives as JustLend continues expanding activity across the TRON ecosystem while pursuing a revenue-backed token burn strategy for JST.

Earlier this year, JustLend DAO completed its third JST buyback and burn, permanently removing 271.3 million JST worth approximately $21.3 million from circulation. According to the protocol’s April disclosure, the purchase was funded through first-quarter 2026 net income together with previously accumulated profits.

That transaction pushed cumulative JST burns to more than 1.35 billion tokens, equal to 13.70% of the total supply.