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unfortunately, there is no incentive for arbitrageurs help to repeg USDJ if TDR doesn't step in during this market condition. When USDJ<$1.00, since usdj has been hovering around $1 for more than 1 year so most of the people mint USDJ via depositing TRX and sell them into USDT ( 1USDJ get 1 USDT). If USDJ is traded at $0.98 for example, they have the motivation to buy the dip and repay some debt. Somemore, we are allowed to use usdj to mint USDD that means the lower bound price for USDJ is always greater than USDD by theory. When USDJ> $1.00, since most of the borrowers already sold USDJ at $1.00 and here is the keypoint, they don't have the motivation to mint more USDJ and sell into stables ( there is no incentive and guarantee that the price will go back to $1 ). The upper bound price for USDJ is $1.50 . Why is that so ? Because the oracle price of USDJ in Juststable is fixed at $1.00 that means someone can directly deposit $150 worth of TRX and mint 100 USDJ. If USDJ price is pumped above $1.50, they can ignore their TRX collateral because just by selling minted USDJ, they get more than what they deposited initially.Nevertheless, USDJ still have the ways to go back to $1.TRX must pump / have a bullrun. People are greedy and don't want to sell .They deposit TRX and mint USDJ to borrow some funds to spend. Those who already borrow USDJ doesn't need to buyback USDJ to repay the loan as well. When alot of people do so, selling pressure> buying pressure and USDJ will fall to $1 eventually. USDJ is working similarly to DAI. Initially, the price of DAI is controlled by the varying interest rate. We can see that even though the USDJ is severely overpegged but the fee is still the same ( 0.5%), although it is cheap enough but cannot attract arbitrageurs to step in. DAI acknowledge this issue and build a PSM to stablize the rate. Why should we be concerned about USDJ overpegged issue ? because the price parity represents the entire stability of TRX ecosystem. If USDJ rate keeps going haywire, nobody is willing to supply trx and borrow USDJ.It poses harm on TRX utilization. I know the problem might be solved during bull market but a truly decrentralized algostablecoin should remain stable in both bull and bears market. USDD and USDJ are all said to be decentralized .TDR took action to defend USDD so they should do the similar thing to take care of USDJ. Can't expect community to help since most of us hope to HODL trx so we need to buyback USDJ to reduce the debt. This will make USDJ to be overpegged even more. The management team in Just has promised us to do their best to stablize USDJ 3 weeks ago. Of course the help from commnity do helps. Let's supply trx and mint USDJ to sell into USD.
NaN days ago imlct
USDJ TRX Arbitrageurs

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