JPEG'd is a blockchain-based project that aims to revolutionize the world of NFT and DeFi by creating a platform that allows people to use NFTs as collaterals for loans. The protocol currently supports most popular NFT collections such as CryptoPunks, Bored Ape Yacht Club, Mutant Ape Yacht Club, and EtherRocks.
JPEG'd was launched in 2022 and it already has $61.4 million in TVL.
JPEG’d has a sophisticated mechanism with three native tokens: JPEG, PUSd, and pETH. Users can deposit supported NFTs into vaults and take out loans in PUSd or pETH whose values are at max 35% of the collateral value. When taking out loans, users can purchase insurance that costs 5% of every debt. This insurance allows users to potentially be able to buy back their NFTs even after being liquidated if they pay the outstanding balance plus the liquidation fee.
PUSd and pETH are two native tokens of the platform that users can borrow by depositing the NFTs. Though the former is a stablecoin and the latter is an ETH derivative token, they are both minted when users borrow and are burned when the debt is repaid. Moreover, both incur an interest rate for lending.
JPEG is the governance token of the protocol that also lets holders access auctions and have a higher debt/collateral ratio.
There are 69,420,000,000 JPEG tokens in total supply, 20,826,000,000 (30%) of which are in circulation.
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