Overview
JPEG’d is a decentralized finance (DeFi) protocol that facilitates lending by allowing users to leverage their NFTs as collateral. By depositing NFTs from supported collections, users can borrow pETH or PUSd, thereby unlocking liquidity without selling their digital assets. The protocol is governed by the $JPEG token, which oversees and administers various parameters within the system.
Lending Mechanics
JPEG’d employs a peer-to-protocol lending mechanism, eliminating the need for direct lender-borrower matching. This model ensures that users can access loans instantly, enhancing capital efficiency. The protocol supports a maximum LTV ratio of 70%, which can be increased through specific boosts. Borrowers can choose between pETH, a synthetic Ether, and PUSd, a stablecoin, depending on their liquidity needs.
Supported NFT Collections
The protocol supports several blue-chip NFT collections, including:
- CryptoPunks
- Fidenza
- Autoglyphs
- Chromie Squiggles
- Ringers
- Bored Ape Yacht Club
- Mutant Ape Yacht Club
- Otherdeeds
- Milady Maker
- Pudgy Penguins
- Kanpai Pandas
- Meebit
- Clonex
- Azuki
- EtherRocks
The inclusion of these collections is determined through the DAO’s governance process, allowing $JPEG token holders to vote on additions.
Liquidation Insurance and Trait-Based Valuation
JPEG’d offers optional liquidation insurance, providing borrowers with protection against potential liquidation events. Additionally, the protocol recognizes the unique traits of certain NFTs, offering valuation boosts for rare attributes. This feature allows borrowers to access higher loan amounts based on the specific characteristics of their NFTs.
Governance and Tokenomics
The $JPEG token serves as the governance token for the protocol, enabling holders to participate in decision-making processes, such as adding new NFT collections or adjusting protocol parameters. The tokenomics are designed to align incentives between users and the protocol, fostering a sustainable and community-driven ecosystem.
