To enable the LTV boost, $JPEG tokens need to be locked on a per position basis. The amount of boost can be chosen by the user, ranging from 0.01% to 10% extra LTV. Once activated, the boost effects are perpetual and will remain active until the user requests the withdrawal of the associated $JPEG.
The amount of JPEG to lock is calculated in the following way:
(boostedCreditLimit - baseCreditLimit) * lockRate / jpegPriceInEth
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.
Unlock up to 20% extra LTV by locking $JPEG
Boost owners can request a withdrawal at any time. The processing period is of 7 days, after which the boost associated to the position will be disabled and the $JPEG will be available for withdrawal.
Locked $JPEG tokens always remain in the possession of the original boost owner. In case of a transfer of the NFT, the associated boost remains active for any future owner of the NFT until disabled by the original boost owner.
All boost created prior to the application of PIP-58 have been marked as having a withdrawal requested and unlock time will be the current unlock time set when creating the boost. Users can cancel the withdrawal request anytime.