JPEG'd
About
JPEG'd is a decentralized lending protocol that lets NFT holders obtain instant liquidity without selling their assets. It offers two lending models: a peer-to-protocol (CDP) system where users deposit NFTs as collateral to mint the synthetic assets pETH (Ether-pegged) or PUSd (stablecoin), and a peer-to-peer marketplace where borrowers and lenders negotiate custom loan terms directly in ETH or USDC with no forced liquidations. The protocol is governed by a DAO through the $JPGD token and is designed to bridge DeFi and NFTs.
Where Does Yield Come From?
JPEG'd earns yield through several built-in mechanisms. Below is a breakdown of each.
CDP Borrowing (Peer-to-Protocol)
When someone deposits an NFT as collateral and mints pETH or PUSd, they pay a fixed interest rate. The exact rate depends on the vault "tier" set by the DAO — for example, pETH Tier‑A at 5% and Tier‑B at 10%, or PUSd Tier‑A at 2% and Tier‑B at 5%. All of this loan interest flows into the DAO treasury multi-sig wallet.
Curve / Convex LP Yield
pETH and PUSd can be deposited into Curve liquidity pools (pETH paired with WETH, PUSd paired with 3CRV). Liquidity providers earn CRV rewards, and JPEG'd boosts those rewards through its Convex holdings. The protocol also offers an auto‑compounding Citadel vault that automatically sells reward tokens for ETH, gradually increasing your LP token balance.
Peer‑to‑Peer Lending
A separate marketplace where lenders and borrowers negotiate their own loan terms directly in ETH or USDC. At launch, the protocol took no fees, so lenders kept all the interest they earned.
Liquidation Insurance
Users can opt into a 2.5% non‑refundable fee on the amount they borrow. If the position gets liquidated, the user has 48 hours to repay the outstanding debt plus a 5% fee to reclaim their NFT. If they don't, the NFT goes to the DAO.
Boosts
Users can lock JPGD tokens to raise their loan‑to‑value (LTV) ratio by up to 10% per position (LTV Boost). They can also stake JPEG Cards for a global LTV increase (Cigarette Boost). Rarer NFT traits unlock higher credit through Traits Boost. Locked JPGD remains the user's property and can be withdrawn after a 7‑day waiting period.
Audits
| Audit / Date | Findings | Verdict |
|---|---|---|
Quantstamp25-10-2021 - 02-12-2021 |
| The Quantstamp audit identified one high-risk unlimited borrowing vulnerability and several medium-severity oracle and reward-calculation flaws, all of which were resolved or acknowledged by the final reaudit, making the contracts safe for deployment after remediation. |
Quantstamp07-12-2021 - 20-12-2021 |
| The audit found 1 high and 2 medium severity issues alongside several informational/undetermined items, all acknowledged by the JPEG'd team with documented mitigations (multisig ownership, off-chain governance, and restricted oracle usage); the report originally recommended against deploying as-is, but the team's responses address the highlighted risks. |
Quantstamp13-12-2021 - 21-01-2022 |
| The Quantstamp audit identified 9 issues (1 medium, 5 low, 3 informational), all of which were resolved through fixes, mitigations, or acknowledgments in the reaudit. While the code was considered well-written with outstanding test coverage, the report recommended against deploying as-is before addressing the findings. |
PeckShield31-12-2021 |
| The audit found no critical or high-severity vulnerabilities; the two medium-severity issues (pool initialization manipulation and admin-key trust) were confirmed and mitigated via multi-sig, while the three low-severity findings were acknowledged or addressed, indicating a generally well-designed and safely deployable protocol. |
Code4rena07-04-2022 - 13-04-2022 |
| The contest revealed 9 high-severity and 11 medium-severity findings, with the sponsor confirming and fixing most critical issues before deployment; however, residual risks around oracle staleness, swap routing assumptions, and administrative controls should be monitored over time. |
Quantstamp07-05-2024 - 30-05-2024 |
| The two critical attack vectors (forced liquidation via refinancing and frontrunning) were fixed before finalization, removing the most severe risks; however, several acknowledged design assumptions remain as residual operational risks that users should understand before interacting with the protocol. |
Backers
JPEG'd raised initial funding via a public "donation event" that concluded on March 1, 2022. According to the protocol's tokenomics page, 30% of the total JPEG supply (69,420,000,000 tokens) was generated during this donation event. CoinMarketCap's token unlock data lists a "Main Sale" allocation of 46.15%, with Team at 46.15% and Advisors at 7.69%. No named venture capital firms, institutional investors, or angel investors are disclosed in the official documentation or on the project's website/docs pages.