JPEG’d – JPEG
Are you an NFT holder looking to trade against your beloved assets without selling them? Look no further than JPEG’d, the decentralized lending platform that allows you to use your NFTs as collateral to open collateralized debt positions and mint stablecoins. With a team of prominent DeFi figures behind it, and the ability to scale “en masse” with its architecture, JPEG’d aims to be a base layer of the DeFi ecosystem for NFTs. Check out JPEG’d with our in-depth review.
JPEG’d is a decentralized lending platform that allows users to use their non-fungible tokens (NFTs) as collateral to open collateralized debt positions (CDPs) and mint stablecoins (PUSd and pETH) that can be used for various purposes. By using NFTs as collateral, JPEG’d aims to be the “cornerstone” of the decentralized finance (DeFi) ecosystem for NFTs.
It’s worth noting that certain NFTs within these collections may be considered more rare and valuable than others, and as such, JPEG’d has implemented trait multipliers for CryptoPunks and Bored Apes to accurately assess the value of these rarer items. The currently supported collections on the JPEG’d platform are:
Users can combine these locking mechanics together to get a maximum LTV of 60%, a liquidation ratio of 61%, and a higher credit limit for rarer NFTs for supported collections. The platform also has an icon that displays the boost status of a user’s position at all times. JPEG’d platform uses locking mechanisms to unlock extra features for users. These features include:
This review of JPEG’d – JPEG was created for informational purposes. This article is not intended for promotion.
JPEG’d is a relatively new platform that officially launched on November 7th, 2021. Upon launch, it supported lending for several popular NFT collections such as CryptoPunks, Bored Ape Yacht Club, and EtherRocks.
JPEG’d is founded by big names in the DeFi ecosystem who saw an opportunity in the NFT space and had the idea to combine NFTs with DeFi. The NFT space is considered to be relatively underdeveloped and the involvement of prominent DeFi figures is seen as a positive development.
Some of the known contributors and advisors of JPEG’d include:
JPEG’d has undergone multiple security audits to ensure the safety and security of the platform and its users’ assets. These audits were conducted by independent, reputable audit firms such as Quantstamp and PeckShield. These audits help to identify potential vulnerabilities or security weaknesses in the platform’s smart contracts and infrastructure and ensure that they are addressed before the platform goes live. More info can be found here
JPEG’d has conducted an airdrop event where selected addresses received ‘free’ tokens. The airdrop was split into two groups: the top 100 largest donors in the donation event each receive 0.01% of the total supply, for a total of 1% of the total supply split equally among them. Additionally, 100 randomly selected donors, excluding the top 100, also each receive 0.01% of the supply, for a total of 1% of the total supply split equally among them.
The airdrop is vesting over 9 months, concluding on 3/1/2023. Eligible addresses can view the airdrop menu when connected to the JPEG’d dApp. The list of airdrop recipients is available on the JPEG’d website.
JPEG’d is a lending protocol that is well-suited for several types of users, such as:
JPEG is the native governance token of the JPEG’d protocol. It is used to manage, administer, and make changes to the protocol. The token holders can use it to vote on proposals, access JPEG’d auctions, change interest rates, loan-to-value (LTV) levels of collections, liquidation fees, all other fees on the protocol, and can vote to determine where fees from the JPEG protocol will go. Additionally, it can be used to lock and increase the credit limit of selected NFTs approved by governance. It’s worth noting that the tokens are not accruing any value, and that the token holders can shape the development of the protocol by voting on proposals and participating in the decision-making process.
Total JPEG supply is 69,420,000,000.
PUSd and pETH pools on JPEG’d protocol allows NFT holders to mint either PUSd or pETH using their NFTs as collateral. It can be swapped to other stablecoins like DAI, USDC, or USDT via the Curve PUSd/3CRV pool.
PUSd is the native stablecoin of the JPEG’d protocol. It is minted when a user borrows against their NFT and burned when they decide to repay their loan. A user cannot borrow both pETH and PUSd from the same vault. PUSd can be swapped to other stablecoins like DAI, USDC, or USDT via the Curve PUSd/3CRV pool. A user can borrow PUSd on the JPEG’d protocol for a 2% interest rate.
pETH is an Ethereum derivative token that is supported by the JPEG’d protocol. It is minted when a user borrows against their NFT and burned when they decide to repay their loan. A user borrow pETH on the JPEG’d protocol with a 5% interest rate.
JPEG Cards are a series of 1,020 NFT cards that offer utility within the JPEG’d protocol. They provide an additional layer of utility to the platform, offering different benefits to its holders. A subset of these cards will have additional utility on JPEG’d’s upcoming platform, but regardless all JPEG cards will be eligible to stake for 1% of the JPEG supply over a month period. These cards depict some of the most pervasive, captivating, and influential memes in the crypto world.
With support for popular NFT collections and a team of experienced DeFi contributors and advisors, JPEG’d aims to provide a unique and advanced lending experience for NFT holders. Additionally, it allows for liquidity for NFTs, making them liquid assets. This is a quite unique take!
In summary, JPEG’d is a decentralized lending platform that allows users to use their NFTs as collateral to mint stablecoins and access capital without having to sell their NFTs. It aims to be the “cornerstone” of the DeFi ecosystem for NFTs by providing various lending options, including secured NFT floor pricing, boosting position for larger borrows, and liquidation insurance. The platform also has a governance token, JPEG, which allows holders to vote on proposals, access auctions, and increase the LTV on rarer NFTs.
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