JPEG’d Leverages Chainlink NFT Floor Pricing Feeds To Help Power NFT-Backed Loans For CryptoPunks, BAYC, and Other Collections

We’re excited to announce that JPEG’d — a novel protocol bridging the gap between DeFi and NFTs — is secured by Chainlink NFT Floor Pricing Feeds on Ethereum mainnet. By leveraging floor price feeds across a number of “blue-chip” NFT collections such as Cryptopunks and Bored Ape Yacht Club, JPEG’d enables users to take out loans using their NFTs as collateral. Chainlink NFT Floor Pricing Feeds help provide users with stronger assurances that loan amounts and liquidations will be determined according to highly secure and accurate NFT floor price data.

JPEG’d is a lending platform that accepts NFTs as collateral for Collateralized Debt Positions (CDP). Similar to MakerDAO, when users deposit NFTs they mint either pETH (synthetic ETH) or pUSD( synthetic dollar). pETH and pUSD holders can deposit these tokens on Curve Finance to earn yield, or they can simply swap them for ETH. This unlocks the capital in NFTs with users still retaining ownership of them.

The protocol is managed by a governance token, JPEG, which enables holders to oversee, administer, and change parameters to the protocol. Interestingly, the token can also be used to unlock extra loan value from the NFTs. Rare NFTs can obtain higher valuations by locking JPEG tokens. These rare NFTs receive valuations that are multiples of the NFT collection floor, which is obtained from Chainlink oracles. As the floor price moves so does the value of these special NFTs.

NFTs from the following collections can be used on the protocol:

• Cryptopunks
• Bored Ape Yacht Club
• Bored Ape Mutant Club
• Doodles
• Pudgy Penguins
• Azuki
• Clonex
• Moonbirds (soon)

Chainlink NFT Floor Pricing Feeds are a subset of the industry-leading Chainlink Data Feeds, which are responsible for securing tens of billions of dollars worth of value. By providing the lowest price in an NFT collection, they play a key role in JPEG’d by helping determine the maximum loan size a depositor can take out and when liquidation events should occur. These functions are critical for maintaining the stability of the collection floors. To help ensure highly accurate data, the algorithm used to generate NFT floor price feed scans every NFT transaction in the collection across major marketplaces, eliminates outliers, estimates the current floor price, and updates floor price estimates as new transactions come on-chain.

JPEG’d chose to integrate Chainlink in order to leverage:

• High-Quality Data — Chainlink’s data aggregation model generates precise global market prices that are resistant to API downtime, flash crash outliers, and data manipulation attacks like flash loans.
• Reliable Nodes — Chainlink NFT Floor Pricing Feeds are secured by a large collection of independent, security-reviewed, and Sybil-resistant oracle nodes run by leading enterprises, data providers, and DevOps teams who have a strong on-chain history of performance even during periods of extreme network congestion.
• Decentralized Infrastructure — Chainlink NFT Floor Pricing Feeds are decentralized at the data source, oracle node, and network levels, helping eliminate any central point of failure in the sourcing and delivery of external data to JPEG’d.
• Transparent Performance — Chainlink NFT Floor Pricing Feeds can be monitored by anyone in real-time, using existing data analytics tools such as market.link, allowing users to verify the data triggering their contract.

“Chainlink NFT Floor Pricing Feeds unlock new solutions that merge DeFi and NFTs in a way that wasn’t previously possible. By leveraging NFT floor price data, we’re now able to support borrowing and lending using popular NFTs like Cryptopunks, BAYC, Pudgy Penguins, and Moonbirds as collateral. ” — JPEG’d Spokesperson

About Chainlink

Chainlink is the industry-standard Web3 services platform that has enabled trillions of dollars in transaction volume across DeFi, insurance, gaming, NFTs, and other major industries. As the leading decentralized oracle network, Chainlink enables developers to build feature-rich Web3 applications with seamless access to real-world data and off-chain computation across any blockchain and provides global enterprises with a universal gateway to all blockchains.

Learn more about Chainlink by visiting chain.link or reading the developer documentation at docs.chain.link. To discuss an integration, reach out to an expert.

About JPEG’d

JPEG’d is a novel and revolutionary lending protocol that will enable NFT holders an opportunity to obtain credit on their assets while still retaining ownership of them. The protocol is completely decentralized and is governed by token holders of the native platform. JPEG’d will also form several synergistic relationships with other protocols within DeFi to increase the value generated by users. JPEG’d has developed a creative insurance mechanism that will allow depositors to repurchase their NFTs back from the DAO in the event of a liquidation.