JLP Loans bring a new and innovative approach to DeFi lending, unlocking a new use case for JLP. Most protocols rely on forced liquidations through market selling. Once the threshold is crossed, your collateral is sold on the market, creating volatility and affecting everyone involved. But because JLP is backed by a pool of assets rather than a single token, and the protocol itself holds these underlying assets, liquidations don't require external selling. Instead, JLP tokens are burned to redeem the underlying assets, resulting in no market impact. A native borrowing experience that is both sustainable and resistant to reflexivity. LPs earn more, users unlock liquidity without exiting their yield positions, and the system avoids the usual traps of forced selling and liquidity crunches.