Unlock extra credit limit for rarer NFTs
Certain NFTs can obtain multipliers of the floor and thus gain a higher credit limit. These multipliers are determined by governance and fluctuate based on floor price. Current trait multipliers can be viewed here.
These newly boosted NFTs still move along with the floor, with an added boost from a set multiplier. If a lock expires, the NFT will go back to floor price, which can possibly trigger a liquidation.
In order to unlock the traits boost for a specific NFT, the user must lock JPEG tokens. The cost will be 15% of the increased credit limit in $JPEG tokens.
The exact formula to calculate the amount of $JPEG tokens to lock for Traits Boost is the following:
AmountOfJPEGToLock = (boostedCreditLimit - baseCreditLimit) * lockRate / jpegPriceInEth
If a Tiara Cryptopunk is deemed to be worth $1m by governance, the user will have to lock up $54,000 worth of JPEG for 1 year.
$1m (collateral value) *36% (max loan amount) * 15% = $54,000 worth of JPEG.
The Traits boost tab