PIP-11: Free Insurance To Positions Migrated From Bend DAO

Abstract JPEG'd DAO will offer free insurance to eligible NFTs that migrate from Bend DAO to JPEG'd within a two-week period.

Background Bend DAO is another NFT lending platform within the emerging DeFi NFT lending space. To attract users in joining JPEG'd over Bend DAO we will offer a one-time free insurance offer if users migrate within a two week period.

Insurance typically costs 5% of debt drawn and allows position holders to repurchase their NFTs within 48 hours if they are liquidated. This fee would be waived if positions are migrated within a two week period. Users would still have to pay the 25% liquidation fee if they are liquidated, but the 5% insurance fee would be waived. The two week period would be between 8/17/2022 - 8/31/2022. Insurance would be valid as long as the position is open.

JPEG'd offers the lowest interest rate within the DeFi / NFT Lending space at 2%, while also having a Convex pool that yields 10-20% APY.

Proposal Offer free insurance to Bend DAO positions that migrate to JPEG'd and draw at least 10,000 PUSd between 8/17/2022 - 8/31/2022.