JPEG Cards announces a token generation event (TGE) that will launch a new DeFi primitive: NFDP (non-fungible debt positions). The backbone of DeFi is a secured debt position without permissions or trust, allowing users to obtain liquidity, using their capital as collateral. This model has proven to be resilient, scalable and a cornerstone of DeFi.
About the JPEG Cards project
JPEG’d — a new and revolutionary lending protocol that will allow NFT holders to obtain credit for their assets while retaining ownership of them. It will also form several synergies with other protocols in DeFi to increase user-created value. JPEG'd has developed a creative insurance mechanism that will allow contributors to buy back their NFTs from the DAO in the event of a liquidation.
Other features:
| 1 | The center of the NFT - the cryptopunks with the most liquid market and the highest capitalization. |
| 2 | Very soon, JPEG Cards will bridge the gap between DeFi and NFT by allowing Cryptopunk holders to open NFDP, using their punks as collateral. |
| 3 | Users will deposit their cryptopunks into a smart contract and be able to mint a synthetic stablecoin, PUSd, effectively providing them with liquidity on their punks and the opportunity to earn DeFi income. |
In the future, JPEG Cards will expand horizontally to all NFTs, including EtherRocks, Art Blocks, Dino Pals, Autoglyphs, Bored Ape Yacht Club, etc., but not Penguins because they are useless. Also, JPEG'd announced that it will launch Olympus Pro Bonds as one of the first NFT-focused protocols, using bonds to provide liquidity. Olympus DAO will help JPEG to launch a bond program for its ETH/JPEG liquidity pool.
With Olympus Pro, users will sell DAO ETH/JPEG liquidity tokens in JPEG format. In exchange, they will receive discounted JPEG tokens. This exchange is known as linking and it has proven to be very successful for Olympus DAO and they own a significant share of the OHM/DAI liquidity pool. Olympus DAO will receive a 3.3% commission on all sold ETH/JPEG bonds.
More about the coin defi site on Ethereum
The JPEG team is close to members of the Tokemak team and could benefit if they had their own Token Reactor for the JPEG token. By launching Reactor, the JPEG DAO can reduce the amount of incentives, paid to liquidity providers in the JPEG/ETH pool. Less incentive means less cost for the JPEG DAO and possibly less pressure from JPEG token sellers. JPEG'd will work with Tokemak control and will try to run its own JPEG token reactor. The goal - to form this synergistic relationship with Tokemak and have more stable and less costly liquidity.