PIP- Stake your NFT

As sizable JPEG holders – we are interested in the long term succuss of the protocol for both the protocol and its users. In order for JPEG’d to continue to grow and increase market share of the expanding NFT borrow/lend market we propose additional functionalities to the protocol to (1) beachhead to larger NFT borrow/lending (outside just PFP) (2) short term focus on getting NFT funds to participate being safest/simplest PFP lending protocol. We believe in order for the protocol to maintain and increase market share of this primitive it behooves JPEG’d to be known as the risk-free rate for NFT lending. DEFI is still new and relatively complex for NFT owners/traders and our proposal seeks to simplify the process to drive more users to interact and borrow from the protocol.
o “Stake Your NFT for X% Yield” button – Fully insured – take all complication out of it.
o This works like auto compounder and Citadel concept.
o JPEG’d takes the “Ape” and creates a loan against it. It then puts the loan into the pUSD Curve Gauge and manages it via a Keeper + Smart Contract. It charges a 20% fee to do this.
o Optimize LTV borrow up/down based on Floor price to maximize yields
 Don’t expect any liquidations if run correctly but provide insurance regardless
o Have visual showing Interest/gains and option to claim them in USDC or ETH periodically
o “make it easy to earn – eliminate DEFI complexity from process”

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I think this makes alot of sense. Alot of NFT holders entered into crypto strictly through that use case and are not familiar with DeFi (some are even have negative opinions). We need to make it as easy for them to engage with JPEG as possible. “Stake your NFT and earn” Once they start seeing interest accrue, they’ll understand the value prop of DeFi and be engaged.
Can the team let us know their thoughts?

This puts all the responsibility of risk management on the DAO.
Who optimizes the borrowed positions? Based on which criterias? What is the risk profile for each of the positions?
Who pays the penalty fee if a black swan event happens?
Doing this would be transforming it in a fund for NFT yield, I’m not sure this is the way to go. Like on Jones does for Dopex, a team could build such a product on top of JPEG’d and manage positions on it.