What is JPEG'd?
JPEG'd is a decentralized lending protocol on the Ethereum blockchain that allows users to leverage their NFTs as collateral to obtain loans. By utilizing their non-fungible tokens (NFTs) as collateral, users can mint pETH or PUSd, which are native tokens of the protocol pegged to ETH and USD, respectively. This mechanism enables NFT holders to unlock liquidity without having to sell their valuable digital assets.
JPEG'd operates with a unique Peer-to-Protocol lending model, similar to MakerDAO's system with DAI. Users can open non-fungible debt positions by depositing NFTs into the protocol’s vaults. The protocol supports prominent NFT collections such as CryptoPunks, Bored Ape Yacht Club, EtherRocks, and others. The maximum loan-to-value (LTV) ratio is 70%, including boosts, ensuring that users can borrow substantial amounts while maintaining a safety margin.
To maintain the integrity and security of its lending mechanism, JPEG'd integrates Chainlink oracles for accurate and reliable NFT price feeds. These oracles help mitigate risks by using the time-weighted average price (TWAP) of sales and floor prices, ensuring that the lending protocol remains fully collateralized.
The platform also features a custom-built insurance module, allowing users to purchase insurance on their collateralized debt positions to protect against liquidation risks. This insurance is a non-refundable 5% fee accessed when the initial debt is drawn.
JPEG'd governance is managed through the $JPGD token, which oversees and administers protocol parameters and decisions, ensuring a decentralized and community-driven approach.