What is JPEGd (JPEG)? JPEGd project overview and JPEG token

• What is JPEG'd?
• JPEG'd . Operation Model
• JPEG'd . Difference
• Developers and investors
• Tokenomics
• Basic information about the PUSd . token
• Basic information about the pETH . token
• Basic information about the JPEG token
• Token Allocation
• Token Distribution Schedule
• summary

What is JPEG'd?

JPEG'd is a decentralized lending platform built on Ethereum that allows NFT holders to collateralize assets and receive in return the protocol's separate stablecoin known as PUSd or the Ethereum derivative - pETH.

Currently the JPEG'd platform only supports collections:

• CryptoPunks
• EtherRocks
• Bored Ape Yacht Club
• Mutant Ape Yacht Club
• Doodles
• Azuki
• Pudgy Penguins
• Clonex
• Autoglyphs

JPEG'd uses a P2P lending mechanism, with NFT prices priced at a floor price taken from the Chainlink Oracles price data feed. This proves that the protocol is not dependent on any liquidity supply, or external factors.

Unlike tokens, each NFT collection will include some rare and basic NFTs. If both of these NFTs deposit in JPEG'd and receive the same amount of stablecoins in return, it would be unfair to the owner of the rare NFT. As a result, JPEG's is working on adding a trait multiplier to CryptoPunks and Bored Apes to accurately measure the value of rare NFTs.

JPEG'd . Operation Model

The operating procedure goes as follows:

• Owner loads NFT into JPEG'd platform.
• After JPEG'd confirmation, user can choose mint PUSd or pETH (choose 1 of 2). By default set on JPEG'd, users can borrow an amount of PUSd or pETH about 35% of the value of the collateral. However, JPEG'd has several methods to increase the loan-to-value (LTV) ratio. The methods will be updated by TraderH4 in the next section.
• In case of loan repayment, the user only needs to pay the initial loan amount and part of the loan fee to get back the mortgaged NFT.
• For PUSd fee: 2%/year 
• For pETH fee: 5%/year

Liquidation Mechanism: User assets are liquidated if and only if the default debt/collateral ratio is 36% or more. At that time, the project will put the user's mortgage NFT up for auction.

NFTs brought up for auction will be locked for 7 days to ensure a successful auction process. Buyers start bidding until there are no higher bids. The last bidder who is also the highest bidder will receive that NFT.

JPEG'd . Difference

Insurance : Users can voluntarily purchase insurance against loans opened on JPEG'd worth 5% of the loan. If a user owns insurance and their NFT is liquidated, they can redeem the NFT from the DAO after repaying the outstanding debt and a 25% liquidation fee.

In case the user's NFT is liquidated and the user has previously purchased insurance, JPEG'd will give them a certain amount of time to be able to repay the loan and get the NFT back. However, if the user still fails to pay on time, the user's NFT will still be auctioned.

Increase LTV on Loans: By default normal LTV falls to 35% users can increase LTV to a maximum of 60% by:

• Traits Boost Lock
• LTV Boost
• Cigarette Boost

For Traits Boost Lock : Users can lock JPEG tokens to increase LTV of rare NFTs. The LTV coefficient depends on the rarity of the NFT and the average value that the NFT has traded above the floor in history.

For LTV Boost : User locks JPEG token, the cost will be 20% of the incremental limit, and the duration of JPEG token lockup is decided by the borrower for the LTV rate to increase by 15%.

For Cigarette Boost : Users can lock NFT JPEG Cards with JPEG'd Cigarette attribute, which increases LTV of loan by 10%.

Note : When users combine two ways including LTV Boost and Cigarette Boost, it will help the LTV rate increase to 60% and the liquidation rate is now 61%.

Developers and investors

Development team

JPEG'd's development team is anonymous, including members as shown in the image below.

Investors

JPEG'd has successfully raised $2 million from advisors and angel investors. Some of them can be mentioned as Tetranode, The LAO, DC Investor, Carson Cook (TokeMak), Andy Chorlian (Fractional), Santiago R Santos…

Tokenomics

Basic information about the PUSd . token

PUSd is the native stablecoin of the JPEG'd project and is created when users collateralize NFT and borrow. When the user repays the loan, the PUSd will be burned. Users can bring PUSd to provide liquidity on Curve Finance with 3Crv pool (combining USDC, USDT and DAI).

Basic information about the pETH . token

pETH is an Ethereum derivative asset backed by the JPEG'd project. This token is also minted when users mortgage NFT and borrow. Similarly, it will also be burned when the user repays the loan. Users can bring pETH to provide liquidity on Curve Finance with a pool of pETH/ETH.

Basic information about the JPEG token

• Ticker: JPEG
• Blockchain: Ethereum
• Token Standard: ERC20
• Contract: 0xE80C…Ab6Be8345a3
• Token Type: Governance
• Total Supply: 69,420,000,000 JPEG

Use cases of JPEG include:

• Voting of Proposals (PIP)
• Join the auction on JPEG'd
• Increase the LTV of the NFTs.

Token Allocation

• 30% generated during donation event
• 35% allocated to DAO
• 30% allocated to Team
• The remaining 5% is allocated to Advisors

Token Distribution Schedule

Tokens of the team and Advisors will be locked for 6 months from the end of the donation event (March 1, 2022). These tokens will then be allocated linearly over 2 years.

Currently, users can buy JPEG tokens on both DEX and CEX exchanges such as: SushiSwap, Uniswap (V3), Curve Finance, MEXC...

summary

Above are details about JPEG'd project – an NFT lending platform. With the effect of Bitcoin NFT, NFT projects and pieces in this field have received a lot of attention from investors. And JPEG'd is expected to storm in the near future if the NFT wave explodes again. However, any investment has risks, so readers need to research this project carefully before making an investment decision.

If you are interested in the JPEG'd project, you can follow the project's official social media pages:

Website | Twitter

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