Unlock extra credit limit for rarer NFTs
Traits Boost allows users to increase the credit limit of NFTs with rare traits that trade multiples above the collection floor. These multipliers are determined by governance and fluctuate based on floor price. These newly boosted NFTs still move along with the floor, with an added boost from a set multiplier. Current trait multipliers can be viewed here.
To enable the Traits boost, $JPEG tokens need to be locked on a per position basis. The credit limit can be boosted up to 10x the current floor value depending on the collection.
Once activated, the boost effects are perpetual, until the boost owner requests the withdrawal of the associated $JPEG. At the end of the withdrawal processing period, the NFT will go back to floor price, which can possibly trigger a liquidation.
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
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 always remain the possession of the boost owner. In case of liquidation or transfer of the NFT, the associated boost remains active for any future owner of the NFT until disabled by the 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.