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JPEG’d had a busy year of launches and product updates as the leader in the emerging NFTFi space. We’d like to summarize what has happened over the past year.
- Product Launch
- Acquisition of CVX
- PUSd and pETH pools launch
- Punk & BAYC Trait and LTV Boosts
- Insrt Finance Collaboration
- Protocol Metrics
- Plans for the future
Product Launch
JPEG’d officially launched on November 7th, 2021 with lending support to CryptoPunks, Bored Ape Yacht Club, and EtherRocks. These eligible NFTs were able to mint pUSD and earn yield via Curve and Convex. Since then we have added support for Mutant Ape Yacht Club, Doodles, Pudgy Penguins, Azukis, Clonex, and we are hard at work adding more collections. Fidenzas, Ringers, Squiggles, and Autoglyphs will soon be supported on the JPEG’d protocol.
Our product launch coincided with one of the earliest, if not the earliest way to obtain loans using NFTs as collateral in the decentralized finance realm on the Ethereum blockchain. By year end we have approximately 14,896 ETH (or ~$18.6m) worth of NFTs as collateral on the protocol. As a reminder JPEG’d has undergone three independent audits from Quantstamp, Peckshield, and a public audit contest with Code4rena.
JPEG’d uses the first of it’s kind custom NFT oracles provided by Chainlink. The JPEG’d team and Chainlink collaborated on approximately 9 months to create these robust oracles, and we are confident these are the most accurate and tamper resistant on-chain oracles for NFTs on the market.
JPEG Cards were also minted enabling holders to earn JPEG rewards (for a limited time). JPEG Cards with a cigarette attribute also give borrowers on the JPEG’d protocol an additional 10% LTV boost if they stake the JPEG card on the protocol. This is among the first practical use case of NFTs outside of digital art.
Acquisition of CVX
Yield on the JPEG’d protocol is sourced from Curve Finance and Convex Finance. The JPEG’d DAO is a top 10 holder of CVX and uses this voting power to incentivize JPEG’d pools with CRV and CVX rewards. JPEG’d DAO controls voting for an equivalent amount of approximately 12m veCRV Here is an informative video about where the yield originates. As of year-end depositors of the Citadel can earn over 30% APY, and was as high as 75% APY at launch.
PUSd and pETH Pools Launch
NFT holders can mint either PUSd and pETH from the JPEG’d protocol using their NFTs as collateral. These tokens can be either sold for ETH, other stables, or provide liquidity on Curve Finance and ultimately earn over 30% APY in the Citadel.
The Citadel is an autocompounding vault that periodically harvests CRV and CVX rewards on behalf of users into ETH. This allows users to earn yield in a completely automated way while still retaining ownership of their NFTs at all times. It is truly DeFi made simple. Some users are earning 75 ETH per year doing absolutely nothing.
Punk and BAYC Trait & LTV Boosts
As an innovator in the NFTfi space, JPEG’d has developed a novel way to obtain higher lines of credit for more rare Punk and BAYC NFTs above floor. The oracles provided by Chainlink are for floor NFTs of each respective collection, however, using trait boosts users can obtain higher lines of credit for rare NFTs. This multiplies the floor oracle by their respective boosts. 20 Punk traits are eligible for boosts, which you can view here. 16 BAYC traits are eligible for boosts, which you can view here. To enable the boost the user must lock JPEG tokens for a period of their choosing. If the position is not relocked when the initial lock expires the NFT returns to floor valuation. More information on how trait boosts work is here.
Additionally, users can obtain 15% more LTV by locking JPEG tokens for a period of their choosing. This lock works similar to the trait boost lock except all eligible NFTs are able to gain this benefit. More information here. These two locking mechanisms give utility of the JPEG token outside of goverannce, while also creating a supply sink. As of year-end, there is approximately 684,000,000 JPEG tokens locked to enable these boosts.
With both boosts and JPEG Card with a cigarette attribute users can enjoy draw up to 60% LTV the value of their NFTs (higher credit limits than floor for rare NFTs).
Insrt Finance Collaboration
Our friends over at Insrt Finance have launched their ShardVault that utilizes JPEG’d technology. The ShardVault owns a CryptoPunk that is deposited on JPEG’d and into the Citadel to earn yield. A great way to “set-and-forget” yield generation for NFTs. The ShardVault, and it’s users, retain ownership of the underlying NFT at all times, while earning yield on it.
Read more about Insrt Finance here.
Protocol Metrics
Cumulative users, TVL, yield earned, supported collections have been UpOnly ©, and we are nearing 300 NFTs deposited on the JPEG’d protocol. JPEG’d has been profitable since day 1
Over 200 individual JPEG locks have been opened and 684,000,000 JPEG is locked and out of circulation. TVL at year end was approximately 14,896 ETH (in NFTs) or approximately $18.6m.
Over 112 ETH has been automatically compounded for pETH Citadel users since it’s launch in Q4, and over $450k for pUSD Citadel users. Cumulative yield generated for JPEG’d users, including non-Citadel pools is over $1m since inception.
As mentioned, the JPEG’d DAO has been profitable since inception and also holds nearly $30m in stables, ~8,400 ETH, 940k CVX in aggregate worth nearly $43m — this excludes any JPEG held by treasury. The DAO has also approved plans to purchase up to $15m worth of ETH with idle cash balances.
Plans For the Future
JPEG’d is hard at work adding new novel features, products, and additional collections. We anticipate support for Fidenzas, Ringers, Autoglyphs, and Squiggles will happen in the near future. We are in the final design phase of creating a JPEG Index, that will give users an easy way to gain exposure to a basket of bluechip NFTs, and are fully focused on creating and launching an NFT Perp dex that will allow traders to leverage long, short, or hedge popular NFT collections.
Stop by our discord, follow our twitter, read our docs and enjoy the ride.
