In Brief:
- JPEG’d protocol integrating with Chainlink for its data feed
- The JPEG’d is working to integrate CryptoPunks to DeFi
- Chain link will help to determine actual worth of collateralized NFT
The NFT lending protocol JPEG’d will use Oracle network Chainlink for its data feed.
According to an announcement, JPEG’d is also working to integrate CryptoPunks within the DeFi ecosystem. CryptoPunks is a collection of 10,000 uniquely generated 8-bit styled punks on the Ethereum blockchain.
JPEG’d Protocol With Chain Link
JPEG’d is merging NFT collateral to empower another DeFi primitive called “Non-Fungible Debt Positions (NFDPs). It will allow JPEG’d users to mint a decentralized stablecoin considered PUSd that is entirely collateralized by their NFTs.
JPEG’d will use Chainlink Oracle to ensure the price of the NFTs used as collateral. Moreover because of their unique non-fungibility, the nature of NFT liquidity is not the same as fungible ERC20 tokens.
JPEG’d is not the only service that is trying to integrate with the DeFi ecosystem. Last month, Aave founder Stani Kulechov also announced a new feature to use Loot NFT as collateral to borrow AGLD in Aave.
To bridge the two ecosystems, JPEG’d is working with Chainlink to launch a custom decentralized oracle solution for estimating NFT assets beginning with CryptoPunks. It will allow clients “to leverage their existing NFTs as collateral to obtain loans, all in a trust-minimized and permissionless manner.”
Utilizing TWAP mitigates outlier occasions by taking average of different sales over predefined time frames making manipulation significantly harder and costly to pull off.
Also, by just following the average cost of the cheapest floored Cryptopunks, the protocol can assist in preventing the issue of clients getting more in assets than their NFT’s real worth.
JPEG’d plans to expand to other popular NFT projects too like Art Blocks, Bored Ape Yacht Club, and beyond in the months ahead.
