PIP-14: Launch pETH Borrowing

Abstract Enable NFT owners to mint pETH (JPEG'd ETH) using their NFTs as collateral.

Background NFT owners can mint PUSd for selected NFT collections using the JPEG'd protocol. There has been interest in using NFTs to mint pETH from market participants. This proposal aims to enable the ability to mint pETH using NFT collections currently approved for borrowing on the JPEG'd protocol.

Specifications pETH borrowing would work identical to PUSd borrowing except for the interest payments. Interest would be fixed at 15% APR, as opposed to 2% APR for PUSd lending. User can borrow up to 32% of their NFT value, and up to 39% if they have a JPEG'd Card with a cigarette attribute deposited to the JPEG'd protocol.

Liquidation would occur at 33% and 40% LTV values, respectively. Debt would be denominated in ETH values instead of USD values. Insurance (48 hour grace period for liquidations) is still possible, and the fee for insurance would still be 5% of debt issued. Insurance as always is optional. pETH vaults still incur a 0.5% borrow fee same as pUSD vaults.