JPEG’d is a lending protocol on Ethereum that enables users to borrow against their NFTs. Borrowers can deposit their NFTs in the vault of JPEG'd to mint $PUSD (a stablecoin). The annual interest rate for borrowing $PUSD is around 2%.
JPEG’d also has an insurance mechanism in place, with the JPEG’d DAO underwriting all issued debt. Users can purchase optional insurance to repurchase their NFT in event of liquidation. If borrowers have purchased insurance and their positions get liquidated, they can repurchase the NFTs back after paying all outstanding debt and a 25% liquidation fee (based on outstanding debt). Otherwise JPEG’d DAO will own the NFT and the insurance agreement is void.
$JPEG is the governance token of JPEG'd DAO.