Traits Boost Lock
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. If the proposal to add traits boosting to a collection is approved by governance, the user must lock 10-15% of the proposed credit limit amount of JPEG for 1 year to increase the credit limit.
For example, 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]. Current trait multipliers can be viewed in the Multipliers section of the documentation.
These newly boosted NFTs still move along with the floor, with an added boost from a set multiplier. If the user's $JPEG lock expires and they have a risky LTV, then their NFT that currently has a trait boost can get liquidated at the floor price. If a lock expires, the NFT will go back to floor price. Locks can additionally be automatically transferred to new owners of the boosted NFTs when their NFTs are transferred to new addresses.
Governance will determine if the increase is appropriate or not. Frivolous requests will be denied so please do not waste your time.