Launch JPEG Index

Discussion to launch the JPEG index. A special vault would be created with a 200 ETH limit. Users deposit eth up to 200 ETH, then the vault is closed. The DAO would buy 20% of this vault (40 ETH).

Each depositor is given an ERC-20 representing portion of the vault. 100 portions. DAO pairs its 20 portions with 40 ETH from treasury to create liquidity.

This vault then buys 1 floor punk approx 60-65 ETH and 1 floor BAYC 70-75 ETH. Outflow is ~130 ETH.

The vault can farm at 80% LTV with no chance of liquidation. The vault can also OTC with the DAO to mint pETH at 1:1 to using ETH. 70 ETH is held in reserve to mint pETH at 1:1 to repay debt if LTV goes to 90%.

130 ETH value of NFTs x 80% = 104 pETH minted
104 pETH deposited to Curve
70 pETH used to manage debt
DAO doesn’t farm with its 20% share giving higher yield to other depositors.

2 Likes

Why only deposit the pETH instead of matching to remaining ETH?

Also, DAO should farm with everyone else.

pETH will have a premium. You mean raise more than needed to purchase the nfts and deposit eth too?

We have ETH in treasury, right? This seems like a good way to use it.

If the DAO deposits only pETH, it imbalances the Curve pool, incentivizing leeches to deposit ETH against it and earn yield without having to buy pETH. If we make a balanced deposit, then ETH leeches will at least have to pay up to enter.

And if splitting rewards from one pool to the index and the protocol is too complicated, yes, raise more than necessary. The point is to make a balanced deposit that does not open up an easy way for ETH-only deposits.