Introducing JPEG’d: When DeFi meets NFTs
[vc_row][vc_column][vc_column_text]Remember that much of what happens in crypto is seasonal. 2022 has been brutal.
And it’s a new year, either people are still fuming about FTX, or being distracted over new DeFi project launches.
In this article, I would like to leave a small opportunity for DeFi enthusiasts to explore and be inspired by something new.
JPEG’d – as one of the leaders in the emerging NFTFi space – had a busy year of launches and product updates.
Let’s take a look at JPEG’d introduction!
What is JPEG’d?
JPEG’d officially launched on November 7th, 2021.
Since its first days, JPEG’d has been known for its lending protocol on Ethereum blockchain that enables non-fungible token (NFT) holders to deposit their NFTs into JPEG’d as collateral and take out a loan for a part of total value.
We all know that NFTs have significantly gained value and been transformed from a simple digital art to an ecosystem with built-in tokens, airdrops, and other generating mechanisms.
However, much of their values remain locked and users have to sell NFTs on the marketplace to make a profit.
In order to unlock this value, JPEG’d has developed a DeFi primitive – a non fungible debt position (NFDP) that enables users to deposit their NFTs as collateral.
By the end of 2022, JPEG’d has approximately 14,896 ETH worth of NFTs as collateral on the protocol.
The protocol is managed by a governance token , $JPEG, that administers and directs the whole ecosystem.
About JPEG’d Token
$JPEG
$JPEG is the protocol’s governance token. It allows holders to:
- Vote on proposals
- Access JPEG’d auctions
- Level Up NFTs
It can be acquired on Sushi Swap or via the dApps integrated swap
$JPEG Smart Contract Address
$JPEG smart contract address on Ethereum network is 0xE80C0cd204D654CEbe8dd64A4857cAb6Be8345a3
About JPEG’d Token Allocation
JPEG’d Token Allocation is directed towards the protocol team, its advisors, the DAO, and a public donation event as in the following diagram.
Market Cap
$JPEG currently has a market cap of approximately $30,939,714 with $3,237 in the daily trading volume (According to Coinmarketcap).
About Lending Protocol
Supported Collections
JPEG’d has currently supported these blockchain projects, as follow:
-
Cryptopunks
This project has been acquired by Yuga Labs and known as one of the earliest examples of non-fungible tokens on Ethereum blockchain and were an inspiration to the ERC 721 standard for most of the modern digital collectibles.
- EtherRocks
This is one of the first NFT-type projects on Ethereum, launched in 2017 and has a decentralized smart contract.
-
Bored Aped Yacht Club
The famous collection has been supported on the JPEG’d platform since day 1, paying forward among the practical use cases of digital arts.
These NFTs were able to mint $PUSd and earn yield via Curve and Convex.
Users are able to mint JPEG’d Cards to earn JPEG’d rewards (for a limited time) as well as gain membership access whose benefits and offerings will increase over time.
-
Others NFT projects
JPEG’d has all supported other popular NFT collections such as Mutant Aped Yacht Club, Doodles, Azuki, Pudgy Penguins, Clonex, Auto Glyphs, etc.
About Lending Mechanics
The DeFi primitive is a peer-to-protocol system whereby the NFT holders deposit NFTs as collateral against which to mint and borrow pUSD or pETH.
- PUSD is the platform’s stablecoin
- pETH is the platform’s synthetic Ethereum derivative.
$PUSD Lending Mechanism
$PUSD gets minted against every borrow position at a rate of 2%.
Besides being burned upon closing of the position, it can be swapped to any other main stablecoin (DAI, USDC, USDT) via the Curve pool.
This lending mechanics is quite simple. Specifically, users deposit NFT into a JPEG’d smart contract as collateral and start to borrow against it. Once the NFDP is opened, JPEG’d mints $PUSD, commensurates with the loan amount, then sends the $PUSD to the user. The user then deploys their stablecoin to other opportunities, and the NFT remains locked on the JPEG’d platform.
The maximum amount of $PUSD minted is 32% of the value of the collateral.
For example, the value of the NFT provided to JPEG’d protocol is worth $150, then it will only be minted up to $48.
However, there would be a deposit fee, which is worth 0.5% of the amount of $PUSD.
$PUSD Smart Contract Address
https://etherscan.io/token/0x466a756E9A7401B5e2444a3fCB3c2C12FBEa0a54
$PETH Farming
Either you can swap $PSUD in the app for ETH, DAI, USDC, or UDST, or you can use pETH to generate yield.
By providing liquidity in the pETH/ETH Curve pool, you can earn rewards in the Curve utility token, and you can stake to the JPEG’d.
Fees
Interest of $PUSD loans will be 2% annually and 5% for the $PETH loans.
To be specific, when the user wants to withdraw his NFTs, the user will have to repay $PUSD borrowed + interest of 2% per year.
- The $PUSD portion will be burned
- The interest portion will be transferred to the project Treasury
After returning $PUSD + interest the user will be able to withdraw his NFTs.
Insurance
JPEG’d has a designed insurance module that is the first of its kind.
Users can voluntarily purchase the insurance on any CDPs they open.
The insurance is a 5% non-refundable fee accessed when the initial debt is drawn.
Liquidations
If you use JPEG’d, always be aware of liquidations, which occur if debt / collateral ratio equals or exceeds 36%.
If this happens, then your NFTs will be lost to an auction process.
NFT Pricing
The JPEG’d platform has integrated top-tier NFT collections and has plans to add more, and while valuations take floor prices utilized by Chainlink oracle.
Connect to JPEG’d
How to Claim Airdrops
Users can claim eligible airdrops on the official JPEG’d’s UI
There are two types of airdrops:
- Airdrops sent directly to the contract address
- Airdrops that can be claimed by NFT holders
The team will implement the airdrop on the UI immediately whenever there’s an airdrop related to a supported collection live.
Users can do as following steps:
- On the dashboard, click on ‘My Borrows’ tab
- Select a collection eligible for airdrop and open a position. If the collection is eligible and the claiming contract has been LIVE, you should see the airdrop claim row.
- Click the ‘Claim’ button to claim the airdrop.
How to stake $APE on JPEG’d
This service is offered free of charge to all depositors.
BAYC and MAYC owners can stake and earn $APE while using their NFTs on JPEG’d as collateral, as well as other rewards from Yuga Labs.
1. Commit on BAYC/MAYC
- Open an active BAYC position on JPEG’d and hit ‘COMMIT BAYC’
- Confirm the amount of $APE to deposit
Your BAYC and $APE are now staked and you can start to earn rewards.
2. Manage staked $APE
- Open a position with staking active and click on ‘Manage BAYC’ button.
=> This allows users to deposit, withdraw, claim and update the amount of $APE they have in deposit.
3. Pair and Manage BAKC
Users can also pair a BAKC to earn extra yield.
Click ‘Manage BAKC’
The BAKC in your wallet will show up and you will select which BAKC to pair with your committed BAYC.
Once paired, you can manage BAKC at all times by clicking “Manage BAKC’ button.
Add $JPEG to KEYRING PRO
- Tap on Wallet Value section
- Scroll down, choose ‘Add token’
- Select Ethereum network, insert $JPEG smart contract address
- Tap ‘Next’, then ‘Add’
100 BUSD Airdrop
This Spring, Bacoor Inc. would like to thank all users of our products with an event called “Spring Airdrop”.
The event is collaborated with Crew3.xyz with the total prize of 100 BUSD.
Join now to have a chance to grab your rewards!
<<Spring Airdrop>>
