NFT Harvesting

NFT Tax-Loss Harvesting

Liquidity and demand shortages can make it difficult to realize a loss on NFTs. Jaypeggers solves this issue by providing exit liquidity via JAY. Since liquidity is derived from trading and platform fees, as described in #the-jaypeggers-vault, there will always be exit liquidity readily available on Jaypeggers.

Asset flow when users harvest NFTs on Jaypeggers

The above flow chart depicts the flow of assets that occurs when a user harvests an NFT. The user pays a service fee of ~0.001 ETH per NFT harvested. 25% of the ETH is collected by the Jaypeggers team and the other 75% is sent to the vault that backs JAY. The user receives 50% of their ETH's value as newly minted JAY. In other words, the vault collects a 25% premium to ensure that the amount of ETH backing JAY increases at a greater rate than the total supply of JAY. This results in the value of JAY increasing with each NFT harvested.

Harvested NFTs are immediately listed in the Jaypeggers 'Thrift Store' or Arbitrage Marketplace.

Disclaimer: Due to the variety of tax law across jurisdictions, the contents of this website are intended to convey general information only and not to provide legal advice or tax advice or opinions. The contents of this website, and the posting and viewing of the information on this website, should not be construed as, and should not be relied upon for, legal or tax advice in any particular circumstance or fact situation. The information presented on this website may not reflect the most current legal developments. No action should be taken in reliance on the information contained on this website and we disclaim all liability in respect to actions taken or not taken based on any or all of the contents of this site to the fullest extent permitted by law. A tax attorney should be contacted for advice on specific legal issues.