Apr 20 | 4 min read
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
Explanation on the auction of index components
NFT raffle for LP providers
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.
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:
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.
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.
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.
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.
JPG will have a streaming fee of 5.95%, Mint fee of 0.5%, and Redeem fee of 0.5%
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.
PUNK: NFTX CryptoPunks Vault
Unisocks: Edition 0
DOG: The Doge NFT
Disclaimer: This content is for informational purposes only and should not be construed as legal, tax, investment, financial, or other advice.
Disclaimer: This content is for informational purposes only and is not legal, tax, investment, financial, or other advice. You should not take, or refrain from taking, any action based on any information contained herein, or any other information that we make available at any time, including blog posts, data, articles, links to third-party content, discord content, news feeds, tutorials, tweets, and videos. Before you make any financial, legal, technical, or other decisions, you should seek independent professional advice from a licensed and qualified individual in the area for which such advice would be appropriate. This information is not intended to be comprehensive or address all aspects of Index or its products. There is additional documentation on Index’s website about the functioning of Index Coop, and its ecosystem and community.
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