The hunt for high-yield crypto investments has prompted one on-chain lending project to consider deploying its treasury in airdrop farming, a favorite pastime for many trading degens.
JPEG’d DAO, the governance group that runs the Ethereum-based lending platform that accepts NFTs as collateral, on Monday began voting on a proposal to deploy up to 50% of its ether (ETH) treasury to “airdrop farming strategies.”
So-called PIP-85 could see JPEG’d DAO utilize nearly $19 million worth of ETH tokens on EigenLayer and Blast, two of the most popular spots for airdrop hunters in the Ethereum ecosystem right now. Both protocols are expected to reward their users with potentially valuable tokens in the future. That expectation has prompted billions of dollars of crypto capital – much of which is from airdrop farmers – to flow into their protocols.
“The DAO is sitting on a healthy treasury and there are possibilities to solidify the treasury at low risk,” pseudonymous JPEG’d contributor 0xTutti told CoinDesk.