The NFT JPEG’d loan protocol partners with decentralized oracle provider Chainlink to enable borrowing using CryptoPunks as collateral.
Chainlink price feeds will power DeFi services over JPEG and give holders of the high value NFT collection CryptoPunks the opportunity to get loans secured by their holdings, according to various tweets and reports.
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âJPEG’d merges the proven collateral debt position (CDP) model with the NFT guarantee to activate a new DeFi primitive called non-fungible debt positions (NFDP). Thanks to JPEG, users will be able to strike a decentralized stablecoin called PUSd which is fully secured by their NFTs, âJPEG said in a statement. blog post.
Prior to this decision, the NFT ecosystem was primarily “silotated from the DeFi ecosystem,” according to the post.
Read more: NFT Marketplace OpenSea sees $ 3.4 billion in transaction volume in August
NFTs – non-fungible tokens – are unique units of information that are linked to images or videos and give their holders unique ownership. Larva Labs’ CryptoPunks Collection features 10,000 randomly generated 8-bit pixel art images of punks, each with exclusive defining characteristics, on the Ethereum blockchain.
Some CryptoPunks have sold for millions of dollars, one of the highest – CryptoPunk 7523, nicknamed “Covid Alien” – reaching $ 11.7 million at a Sotheby’s in June. auction.
The Chainlink price feed will quantify the Time Weighted Average Price (TWAP) of the NFTs selling and floor prices for a blended price that will be used to value the floor punks. Price flows will be the basis that will determine loan sizes and liquidation dates.
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In August, the NFT OpenSea marketplace recorded a transaction volume of $ 3.4 billion on Ethereum, ten times more than in July. OpenSea’s most popular NFT collection is CryptoPunks, with Visa having purchased âCryptoPunk 7610â for around $ 150,000, PYMNTS reported earlier this month.