JPEG'd uses a peer-to-protocol lending mechanism. This means, that the protocol is independent of any liquidity provision or external factors.
The lending mechanics offer several nuances and powerful options for borrowers, such as secured NFT floor pricing powered by chainlink oracles, boosting position for larger borrows, liquidation insurance, and more.
Users can either borrow PUSd or pETH against their supported NFT deposited in a JPEG'd vault.
PUSd, the protocol's native stablecoin gets minted against every borrow position at a 2% borrow rate and burned upon closing of the position. It can be swapped to any other main stablecoin (DAI, USDC, USDT) via the Curve PUSd/3CRV pool. Such swaps can conveniently be done by using the swap tab on the dApp.
Borrowing pETH, the protocol's native Ethereum token, can also be done at a 5% interest rate. However, a user cannot borrow both PUSd and pETH on the same vault.
More about PUSd and pETH can be read in the Tokenomics section o