Topic to discuss a potential upgrade to the JPEG’d protocol: Punk trait multiplier.
Certain punk trait attributes that are valued by the market to be higher than the punk floor will be eligible to obtain a higher credit limit. Each trait will have a multiplier that is based on the floor, provided by the Chainlink oracle. This value will fluctuate based on the floor oracle, but the multiplier will remain the same unless an individual trait multiplier is changed by a valid governance proposal.
To unlock the higher credit limit a user will lock 10% of the increased credit limit for year in the form of JPEG. If the user doesn’t relock after 1 year the punk returns to a floor valuation. For example, if the punk floor is 100 ETH and a hoodie punk has a trait multiplier of 3x, the user would be eligible to obtain a 300 ETH valuation for this punk. If we assume eth is trading at $1,000, he would lock $9,600 worth of JPEG for one year to unlock an additional 200 ETH ($200,000). 300 ETH x 32% (LTV limit) = 96 ETH x 10% = 9.6 ETH x $1,000 = $9,600 worth of JPEG.
This potential proposal would begin with 20 punk traits, but can be expanded to additional ones in the future.
Suggest to reduce percent of value worth of jpeg tokens to be locked. Suggest for it to be 5 percent
Train of thought as such:
users are required to lock up for 1 year, which is a considerable amount of time and committment.
reducing to 5 percent allows for lower barrier of entry, which means higher volume of loans taken
with higher number of loans taken, it equates to higher amount of Jpeg tokens locked up
in my opinion,
10 percent means lesser loans taken
5 percent means more loans taken
(Which would then mean equal or more Jpeg tokens locked up; it’s a flywheel effect of having more loans , brings more spotlight, and more spotlight , resulting in more loans)
trait boost is first in the market which can then be an advantage to Jpegd platform. If the barrier of entry is high, it may not be used extensively and as such a waste to team’s effort with coming out with such novel mechanics
“$9,600 worth of JPEG for one year to unlock an additional 200 ETH $200,000”
10k locked to get 200k seems like a great deal, and we’re the only ones offering it. we don’t need to make it lower. If anything I would make it higher. You can always tweak it down lower if you need to in the future, but it would be much harder to tweak it higher.
hey jpegmaxi, If we got rid of cigs and just gave everyone the increased LTV for free that would also increase # of loans we would get.
Your maths is wrong. 9.6k locked to unlock 66k of credit limit. And nobody would fully utilise the additional 66k becoz any downward movement in pf/ price of Eth would result in liquidation.
Nobody likes to live in fear of liquidation. Thus, borrowing 33k (out of the 66k) is a reasonable amount.
So now, We are locking up 9.6k to unlock 33 k worth of credit
Slight change of the structure: users can lock any period 1 day or 1 year. But if they don’t renew the lock it goes back to floor. That should make it more flexible.
Maybe offer free insurance for people that lock it in for a year, then we have flexibility and for people that just want to farm long term a safety net with free insurance.
My personal opinion and does not reflect the team:
10% to make the calculations simpler
I think if they’re haggling between 5% and 10%, they shouldn’t be taking out loans in the first place… we are talking about punks owners here, not midladies
10% LTV lockup, keep the market choice and math simple