Increase Liquidation ratio to 71%
LTV boosts allows users to increase the LTV of positions by up to 25%. By itself, this raises the max LTV up to 60%.
$JPEG tokens need to be locked on a per position basis, but the period of the lock is selected by the user. It can be 1 day, 1 month, 6 months, etc. This is all determined by the user.
The maximum boost values apply to Cryptopunks and BAYC, while other collections can only reach a max LTV of 50%.
The $JPEG tokens locked for the boost will remain locked until the boost expiration. This effectively keeps the boost active for any future user opening a position with the same NFT on JPEG'd.
The amount of JPEG to lock is calculated in the following way:
(boostedCreditLimit - baseCreditLimit) * lockRate / jpegPriceInEth
In order to unlock the 15% LTV boost, the user must lock JPEG tokens. The cost will be 20% of the incremental value of the increased limit in $JPEG tokens.
The exact formula to calculate the amount of $JPEG to lock is the following:
AmountOfJPEGToLock = (boostedCreditLimit - baseCreditLimit) * lockRate / jpegPriceInEth
100 ETH floor collection 35 ETH = max borrow with no JPEG Card 45 ETH = max borrow with staked JPEG Card 60 ETH = max borrow with staked JPEG Card and locked JPEG tokens Assumed JPEG token price = $0.0006 Assumed ETH price = $1,000
Increase in credit limit due to locked JPEG tokens = 15 ETH x 20% cost (in JPEG tokens) = 3ETH / $0.0006 = 5,000,000 JPEG tokens.
With a 3 ETH cost you essentially unlock an additional 15 ETH of credit.