Integrate JPEG'd’s Approach & Assets with Teahouse Finance’s NFT Collection and LP Strategy Vaults

Proposals
1

Abstract

Teahouse Finance aims to incorporate JPEG’d’s innovative DeFi and NFT approach into Teahouse’s ecosystem by integrating JPEG’d’s synthetic assets. By including Teahouse’s HighTable NFT collection in the list of assets supported by JPEG’d, the Teahouse community can borrow pUSD from JPEG’d’s pool and invest it in Teahouse’s secure and transparent managed vault, allowing users to utilize Teahouse’s strategy to generate yields. The core concept of this collaboration is to offer, not just Teahouse’s NFT holders, but JPEG’d’s entire NFT community access to Teahouse Finance’s secured and transparent vaults.

Background

  • JPEG’d’s unique DeFi and NFT approach creates a stable and affordable interest credit market for the NFT community.
  • Teahouse has its own collection of NFTs (The HighTable collection: https://ht.teahouse.finance/) which function as a membership pass granting access to our portfolio strategy and gated smart vaults.
  • Teahouse has researched several NFT lending protocols from P2Pool and P2P and has identified JPEG’d’s model as the most innovative and sustainable, making it the ideal choice for our proposed collaboration due to the significant synergy it offers.
  • Incorporating JPEG’d’s synthetic assets into Teahouse’s ecosystem would be a prudent approach to diversify risk within JPEG’d DAO’s yield portfolio and add intrinsic value to Teahouse’s HighTable NFT collection.
  • Teahouse’s vaults will offer a secure and transparent method for tracking how interest payments are generated, greatly reducing the risk of liquidation loss.

Proposal Specifics

  1. Teahouse’s HighTable NFT collection is added to JPEG’d’s list of Supported Collections.
  2. Teahouse Finance will create a strategy and open a managed vault for handling JPEG’d’s synthetic assets. This strategy can be a combination of our liquidity provision strategies on Uniswap V3 and some reserves in the pUSD Curve pool.
  3. Teahouse will publish an article that covers the details of the strategy.
  4. Co-marketing announcements will be posted on both Teahouse’s and JPEG’d’s social media channels.
  5. HighTable NFT holders in Teahouse’s community will provide their HighTable NFTs to borrow pUSD from the JPEG’d pool. The borrowed pUSD is then deposited into Teahouse’s managed vault to generate yield through Teahouse’s LP strategy.
  6. When HighTable NFT holders decide to reclaim their NFT, they can withdraw the pUSD and profits from Teahouse’s vault. They can then repay the loan with interest to retrieve their NFT from JPEG’d’s contract.

We believe that this partnership will not only benefit both parties but also foster the growth and development of the NFT and DeFi communities. Anyone holding a JPEG’d-supported NFT will have the opportunity to utilize Teahouse’s specialized vault (via the use of pUSD) to generate returns and unlock the full potential of their NFTs.

1 Like
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Hi, thanks for your interest in JPEG’d and your thoughtful proposal.

JPEG’d focuses on collections with either blue-chip status, or sufficient liquidity and volume to have an efficient running oracle.

As far as I can see, the HighTable collection of Teahouse has very little volume and liquidity.

As such, in the current state of affairs, I’m not sure that the collection is ready to be added to JPEG’d for the moment. I feel it would be added risk to the DAO.

Perhaps best to come back when the collection and the Teahouse community has matured a bit more and gotten more traction?

3

Hi Oxtutti,

Thank you for the feedback. We understand that the HighTable’s tading value is at the lower side. Many of our holders were holding the HighTable as the membership pass to use our NFT gated strategy vaults (2.3M TVL). Although our managed vault just open for public recently, the majorty of the HighTable holders are waiting for early $TEA eligibility.

We are aware of the risk associate with liquating an illiquid NFT colletral. Would JPEG’d concider the following addendums

  1. Teahouse’s community would provide some issurance or escort contract that used price orcle on HighTable collection’s floor price and the pUSD vault vaule to ensure the borrowed fund in our vault will be withdraw to payback the loan when certian threshold is reach. (refer to model of Gearbox Finance)
  2. Our partner Zombie Club (https://opensea.io/collection/e-shell) and Elysium (https://opensea.io/collection/e-shell) will this two collections’ volume and liquidity be sufficient to running on oracle to mitigate the risk for JPEG’d.
  3. Opening a side pool with limited loan amount to retain the risk for the JPEG’d plus opt 1.

After a comprehensive analysis of various P2Pool NFT lending protocols, our team found that JPEG’d’s model not only excels in DeFi integration but also stands out as a truly sustainable solution. Teahouse is eager to collaborate with JPEG’d to explore yield generation opportunities beyond the CRV incentives.

We are looking forward to your feedback. Thank you,

1 Like
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The way JPEG’d is designed, requires elligible collection to have:
high liquidity
high enough floor
ideally lots of daily volume
or have attained “blue-chip” status

Those characteristics have been chose to protect the DAO from any form of bad debt in case of liquidation.
The HighTable NFT is not there yet, I do not feel it can be compared to any of the collections currently supported by JPEG’d.

To respond to your addendums:

  1. Issuing an insurance isn’t really useful, as the DAO has no proof the funds will be used to maintaint the collection floor, is resilient enough to do so, or insure that liquidated NFTs would be bought back.
  2. I’m unsure how you see that adding partner collections will help reduce the risks on the HighTable vault
  3. all JPEG’d vaults have debt ceilings to protect against unforeseen collection movements.

As things are, I do not think the HighTable NFT collection is ready to be added to JPEG’d, but I’m only one small voice in the DAO. Any JPEG holder has the ability to post a proposal to vote and it’s then up to the community to decide.

Thank you for your interest in JPEG’d and your understanding. We are of the same opinion as you are :).
You might want to note that JPEG’d is Peer2Protocol and not P2Pool lending.

5

Thank you for taking time to provide us with more detial and thoughful insights. Sorry that I could not reply sooner as I was busy with our partnership program with Boba Network. We will keep on building and work on expending Teahouse’s DeFi present and expecting growning more tractions for the HighTable membership NFT.

Here I just want to clearfy on the 2nd point as we managing partial treasury for our NFT partners in a private and I believe that the two porject has more NFT liquidity than HighTable collection. Although they now has lower floor price. In case the Zombie Club (ZC) is able to pass the risk due diligence test, Teahouse can open a pUSD managed vault for the ZC holders.

I see now that the ZC might pass the liquidty part and maybe the daily volume but its floor price is much less then ideal.

Much appreciated.

1 Like