LTV boosts allows users to increase the LTV of individual positions by up to 10% above the Base LTV of the selected collection.
To enable the LTV boost, $JPGD 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 $JPGD.
Unlock up to 10% extra LTV by locking $JPGD
The amount of JPGD to lock is calculated in the following way:
(boostedCreditLimit - baseCreditLimit) * lockRate / jpgdPriceInEth
In order to unlock the 10% LTV boost, the user must lock JPEG tokens. The cost will be 20% of the incremental value of the increased limit in $JPGD tokens.
The exact formula to calculate the amount of $JPGD to lock is the following:
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 JPGD tokens
Assumed JPGD token price = $0.0006
Assumed ETH price = $1,000
Increase in credit limit due to locked JPGD tokens = 15 ETH x 20% cost (in JPEG tokens) = 3ETH / $0.0006 = 5,000,000 JPGD tokens.
With a 3 ETH cost you essentially unlock an additional 15 ETH of credit.
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 $JPGD will be available for withdrawal.
Locked JPGD always remain the possession of the boost owner. In case of transfer of the NFT, the associated JPGD boost remains active for any future owner of the NFT until disabled by the boost owner.
In case of Liquidation the locked JPGD get burned.
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.