JustLend DAO Overhauls Lending Architecture with SBM V2

The new design separates liquidity from individual collateral assets. Users deposit funds into central Vaults, which then distribute capital across multiple independent Markets. This structure ensures that potential liquidation events or price volatility within a single collateral market remain contained, preventing contagion from destabilizing the broader protocol. Borrowers interact exclusively with these segregated Markets, pledging specific assets to secure their loans.

Alongside this structural change, the platform introduced an Adaptive Curve Interest Rate Model. Unlike the previous Jump Curve mechanism, this system adjusts borrowing costs based on real-time utilization rather than fixed thresholds. Rates decrease when utilization is low to stimulate demand and rise during periods of high activity to ensure liquidity remains available. Each market now manages its own lending parameters, including loan-to-value ratios, allowing for granular risk management.

This deployment follows a period of aggressive financial restructuring for the protocol. Earlier this year, JustLend DAO executed a buyback and burn program that removed 271.3 million JST tokens from circulation. Funded by first-quarter 2026 net income and accumulated profits, this move brought the cumulative total of burned tokens to over 1.35 billion, representing 13.70% of the total JST supply.