JPEG'd (OLD)

What is JPEG'd?

JPEG’d is a decentralized lending protocol designed to provide users with the ability to secure loans using non-fungible tokens (NFTs) as collateral. The protocol supports loans in pETH (the Ether synthetic of JPEG’d) or PUSd (the stable synthetic of JPEG’d), featuring a maximum loan-to-value (LTV) ratio of 70%, which includes boosts. Essentially, JPEG'd empowers users to unlock liquidity from their NFTs without the need to sell them. Governed by the $JPEG token, the protocol is entirely permissionless, decentralized, and not controlled by any central entity. JPEG'd aims to bridge the gap between decentralized finance (DeFi) and NFTs by enabling holders of various NFT collections to access lines of credit.

JPEG'd Features and User Benefits

JPEG'd employs a unique Peer 2 Protocol lending mechanism, similar to Maker DAO's and DAI, providing instant borrowing and unique yield opportunities for NFT holders. Users can leverage their NFTs to borrow pETH or PUSd, enjoying instant liquidity without waiting for pairing.

The protocol offers perpetual fixed-term loans with the lowest NFT lending rates starting from 2% yearly. Unique traits valuation is applied to selected collections, along with liquidation insurance and an optimized user experience for large NFT holders. Users can also take advantage of unique yield opportunities with pETH/WETH and PUSd/3CRV Curve pools.

The protocol incorporates DeFi standard Chainlink oracles, ensuring reliable and secure data for users. Borrowing on JPEG'd is highlighted as capital-efficient, worry-free, and convenient.

JPEG and JPGD Token

JPEG'd currently supports borrowing against blue-chip NFT collections. The protocol transitioned from the former governance token, JPEG, to JPGD, with JPGD now serving as the governance token in the JPEG'd ecosystem. JPEG holders can actively participate in governance by voting on proposals for JPEG'd DAO, increasing LTV on borrowing positions, and enhancing credit limits for rarer NFTs.

JPEG'd Auctions

JPEG'd auctions follow an Open Ascending format, lasting 24 hours. Bidders compete by placing ETH bids, with the highest bid securing the NFT at the end of the auction. The auction can be extended if a new bid is introduced within the last 5 minutes. Participants can withdraw their bids if outbid, and anyone can join the auctions. Bidding is incremental, requiring a minimum 1% increase above the current highest bid.

How Does Borrowing on JPEG'd Work?

Similar to Maker DAO with DAI, JPEG'd employs a peer-to-protocol borrowing mechanism, independent of external liquidity providers. Any NFT from the supported collections can be used as collateral to borrow pETH or PUSd. Borrowers cannot simultaneously borrow pETH and PUSd on the same position. Borrowing pETH incurs interest rates of 5% or 10%, depending on the vault tier, while borrowing PUSd involves a 2% interest rate. The LTV ratio for pETH is not subject to ETH's price movements, as NFT collateral values are priced in ETH.

Project Development

In jan 2024, JPEG'd was thrilled to announce a significant milestone in its evolution by migrating from the JPEG token to the new token, JPGD. This migration introduces enhanced features, improved gas efficiency, and expanded opportunities for the community. JPGD inherits all capabilities of JPEG and brings innovative utilities, allowing users to borrow pETH using JPGD as collateral. JPGD becomes the exclusive token for governance, boosts, and future functionalities, marking a fresh start for JPEG'd.

To incentivize participation and ensure liquidity, a JPGD/ETH liquidity pool will be introduced with a $1 million worth of POL. A 30-day liquidity mining program, targeting a 20% APY, will reward liquidity providers with JPGD. Former POL liquidity will be withdrawn, and the Treasury will migrate all held JPEG to JPGD.

Key details include a JPGD supply of 100 billion, a conversion rate of 1 JPEG to 1.4405 JPGD, and specific contract addresses for JPGD and the JPGD-ETH pool. This transition signifies the next chapter in JPEG'd's journey, unlocking new possibilities. For migration instructions and detailed information, users can refer to the Migration Guide, encouraging the community to join in this exciting transition and experience the continued innovation and seamless services provided by JPEG'd.

JPEG'd (OLD) Price Analysis

As of October 11 2024 JPEG'd (OLD) has a marketcap of $34M. This is {{percentagefromath}} from its all time high of $0.00715773. In terms of its tokenomics, there's a total supply of 69B with 100% currently outstanding. Keep in mind JPEG'd (OLD) has a fully diluted value of $34M which many investors might interpret as overvalued.

Of course, don’t trust price predictions alone, always check the Coinrotator token screener to follow the trending market.

Summarized in part by ChatGPT 4 and Claude