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Announcing the Launch of JPG: An NFT Index
Announcing the Launch of JPG: An NFT Index
The Index Coop is thrilled to announce the highly anticipated launch of its game-changing NFT Index: JPG!
4/20/2022
Index Coop
Content
The JPG NFT Index provides broad exposure to blue-chip and premier NFT collections through a single liquid token. JPG is composed of fungible versions of NFTs such as fractional NFTs, NFT liquidity vaults, NFT curation DAOs, NFT currencies, and wrapped NFTs. Additionally, JPG provides governance rights to vote on the token protocol.
NFTs are a revolutionary cultural, artistic, and financial phenomenon. However, to date, it has been very difficult to gain access to top NFT projects due to the high degree of curation expertise needed, the low liquidity, slow transaction times, and the high entry costs. The JPG index token addresses these barriers by providing a fully-backed, diversified collection of blue-chip and premier NFT collections through a single index token. All of the components of JPG are fully collateralized by and redeemable for fungible versions of NFTs and NFT collections. Through a unique curation model, the JPG token holders will vote on which future collections to acquire, adding additional value to JPG ownership.
In this post, you will learn:
The basics of the JPG Token
JPG Methodology
Explanation on the auction of index components
NFT raffle for LP providers
The Basics of the JPG Token
JPG is designed to provide liquid access to the top NFT collections through a single index token. The underlying tokens in the index are drawn from fractional and liquidity vaults, curation DAOs, and currencies. The tokens were selected based on having high liquidity and sufficiently high market cap.
NFTs Simplified
JPG is an index of NFTs represented by NFT vault tokens, curation DAO tokens, NFT currencies, and wrapped NFTs. The index consists of ERC-20 tokens exchangeable for or backed by NFTs.
JPG provides a portfolio of leading NFT collections with the convenience and liquidity of a single index token. Key advantages over holding individual NFTs include:
Broader diversification
Curation provided by the underlying protocols
Lower capital requirements
Higher entry and exit liquidity
Faster order fulfillment
Reduced transaction fees
Protocol governance provided by the JPG token
JPG allows holders to access the NFT market with all of the ease of an individual token.
JPG Methodology:
Like many Index Coop products, the JPG NFT Index relies on a methodologist to articulate the curation and inclusion criteria. The initial inclusion criteria for JPG included the following:
Token must provide a claim on, be collateralized by, or provide currency for NFTs.
NFTs must represent art or collectibles.
Market cap (circulating supply) > $2M. Sufficient underlying liquidity
Further inclusion decisions will be governed by Collectooors NFT holders and JPG token holders.
Explanation on auction of index components:
Certain components of JPG contain NFT collections which may go to auction. In the event of an auction, the price action would become very volatile until the auction is completed. The price will become very volatile during the auction since liquidity providers of the underlying components may remove their liquidity in order to avoid interfering with the auction bidding. As a result, certain price feeds for the token could stop which would temporarily impact the index token spot price until the auction is completed. Also the inability for arbitrageurs to mint and redeem the token due to the lack of underlying liquidity could cause substantial price-NAV (Net Asset Value) deviation.
Index Coop will communicate the start and outcome of any auction. At the end of a successful auction, the index will claim the auction proceeds. The proceeds would then be reallocated according to the JPG Governance Council.
NFT Raffle Program:
In addition to the exposure, JPG will offer its index holders, Index Coop has created The Index x @cafpunk Collectooors collection! Index Coop will be airdropping 30 of the Collectooors NFT Collection as part of a first of its kind liquidity mining campaign. By simply holding JPG-ETH LP in your address you will automatically be eligible to win a free NFT every day. There's no need to stake your LP anywhere. Every LP provider will have an equal chance to win as long as the minimum amount of 0.01 ETH is met. In order to foster a collaborative community, there will be a maximum of one NFT per address.
Eligible LPs: Uni v3 Pool & G-uni
Fees:
JPG will have a streaming fee of 5.95%, Mint fee of 0.5%, and Redeem fee of 0.5%
How to Buy / LP:
Buy:
LP:
In addition Index Coop has seeded a JPG / ETH pool on Uniswap v3.
Token holders are also able to provide liquidity through the G-uni pool (powered by Gelato, which manages the LP position parameters for you. Please note that this is a third party service and that the Index Coop does not control this g-uni pool.
JPG contents and valuations:
PUNK:
XMON:
WHALE: - OpenSea
and
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Unisocks:
DOG:
uJENNY: - OpenSea
and
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ArtCentral Portfolio Appraisal Nov 2021
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ASH:
More Resources:
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Streaming fees (an annual fee paid continuously block-by-block), mint and redeem fees (only on leverage tokens), and borrow costs (interest paid to borrow funds from onchain markets when using leverage).