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Cryptex Finance new Index Token to track top 10 NFT collections

The JPEGz index token offers users access to ten of the market’s greatest NFT projects. This is accomplished by utilizing price feed data from Chainlink and Coinbase.

Ten NFTs are obtained for one token. The brand-new JPEGz tool from Cryptex Finance claims to accomplish this.

Data from Chainlink oracles and Coinbase Cloud are used to power the index token. Investors will have a simple way to enter the NFT market as it will be released on the layer-2 Ethereum scaling solution Arbitrum One.

Popular NFT collections including Azuki Official, Bored Ape Yacht Club, and CryptoPunks, among others, have their market capitalization tracked by JPEGz.

The ten inaugural “blue-chip” collections were picked using Coinbase Cloud based on their on-chain liquidity, the transparency of their liquidity, and characteristics that prevent wash trading from affecting their floor pricing, according to Joe Sticco, co-founder of Cryptex Finance, who spoke with Decrypt.

JPEGz token holders can access the overall market capitalization of the NFT collection without purchasing the NFTs themselves by integrating Chainlink’s NFT Floor Price feeds, which provide a minimum value for each NFT in the index.

Additionally, JPEGz makes it simpler for owners of NFTs, platforms, and exchanges to defend their positions.

According to Sticco, those who hold an NFT holding can issue JPEGz using MakerDAO’s stablecoin DAI or ETH and immediately sell the index token on an exchange like Uniswap.

The JPEGz tokens might be purchased back and then burned for DAI or ETH, “netting the difference as a hedge against their NFT investments,” if the market cap of the collections as a whole decreases.

Sticco asserts that the company would never directly retain any NFTs, notwithstanding Cryptex Finance’s offer of JPEGz as an index-tracking token supported by an over-collateralized vault for liquidity.

In its place, he predicted that “users may soon be able to mint JPEGs by posting their own NFTs as vault collateral.”

Content Source: decrypt.co

About MahKa

MahKa loves exploring the decentralized world. She writes about NFTs, the metaverse, Web3 and similar topics.

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