JPEGd is a lending protocol on Ethereum that allows users to borrow against their NFTs. By depositing their NFTs in the JPEG'd vault, borrowers can mint $PUSD, a stablecoin. The borrowing interest rate for $PUSD is approximately 2% per year.

JPEGd also incorporates an insurance mechanism, where the JPEGd DAO guarantees all issued debt. Users have the option to purchase insurance to reclaim their NFT in the event of liquidation. If borrowers have insurance and their positions are liquidated, they can repurchase the NFTs after settling all outstanding debt and paying a 25% liquidation fee (based on the outstanding debt). Otherwise, the NFT will be owned by JPEGd DAO, and the insurance agreement becomes void.

$JPEG serves as the governance token for JPEG'd DAO.