JPEG’d – JPEG

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JPEG’d – JPEG

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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.

What is JPEG’d – JPEG?

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.

Supported Collections

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:

 

Supported Collections JPEG

Boost Locking Mechanics

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:

  • Traits Boost: This allows users to increase their credit limit for rarer traits of their supported NFTs.
  • LTV Boost: This increases the Loan to Value (LTV) ratio by 15%.
  • Cigarette Boost: This increases the credit limit by 10% on all positions.

This review of JPEG’d – JPEG was created for informational purposes. This article is not intended for promotion.

General info about JPEG’d – JPEG

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. 

Founders

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 - Advisors

Audits

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

Airdrop

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.

Use case of JPEG’d – JPEG

Who can use JPEG’d?

JPEG’d is a lending protocol that is well-suited for several types of users, such as:

  • NFT owners who do not want to sell their NFTs but want to access capital without triggering a taxable event.
  • NFT owners who want to earn yield on their NFTs while still retaining ownership of them.
  • NFT owners who want to speculate on other assets using a line of credit drawn from their NFT.
  • NFT owners who want to hedge against market fluctuations.
  • NFT owners who want to obtain a line of credit on their existing NFTs to purchase more NFTs.
  • NFT owners who want to obtain a line of credit to purchase ETH and become an ETH validator earning a return.

 

What is JPEG Token? 

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.

JPEG tokenomics

Total JPEG supply is 69,420,000,000.

  • 30% was generated during the donation event
  • 35% is allocated to the DAO
  • 30% is for current and future team members (vested for 2 years linear and a 6-month cliff)
  • 5% is for advisors (vested for 2 years linear and a 6-month cliff)

 

Jpeg'd - Token Alloc

PUSd and pETH

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. 

What is PUSd Token? 

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.

What is pETHToken? 

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

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.

Where to buy and sell JPEG’d – JPEG?

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What do we think about JPEG’d – JPEG?

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!

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JPEG’d – JPEG conclusion

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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Disclaimer: Trading and investing in cryptocurrencies (also called digital or virtual currencies, altcoins) involves a substantial risk of loss and is not suitable for every investor. You are solely responsible for the risk and financial resources you use to trade crypto. The content on this website is primarily for informational purposes and does not constitute financial advice.

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