Rattibha

FloorDAO $FLOOR THREAD 💨🧹
With celebs joining the BAYC and Opensea volume at ATHs, NFTs continue to be a hot topic in 2022.
@FloorDAO aims to become the largest decentralized NFT market maker and earn high yield on its treasury, bridging the gap between NFTs and DeFi.
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1/ What is FloorDAO?
FloorDAO is an NFT market-making protocol designed to enable deep liquidity on NFT collections and generate high yield for the DAO treasury through this liquidity. The protocol will use the bonding and rebasing mechanics of Olympus and...

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...the decentralized market making of NFTX to create a community-owned product that sweeps floor NFTs and earns yield.
How? Let me explain.

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So, the protocol is a fork of Olympus and is therefore using bonding and rebasing mechanics. What does this mean?
- Bonding: selling $FLOOR at a discount to acquire liquidity, which will be used to acquire strategic NFT assets that are bonded into the protocol.

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- Rebasing: the process of minting new $FLOOR that are paid to stakers. It ensures that holders are incentivized to stake to capture generated yield and treasury asset appreciation.
The strategies should yield enough for the growth of the treasury to outpace the inflation.

5/ What is NFTX?
NFTX is a platform for making NFTs liquid. Users deposit their NFTs into an NFTX vault and mint a fungible ERC-20 token that represents a claim.
The main benefits are increased liquidity and that it allows users to LP and stake the tokens to earn yield.

6/ Strategy
Once the bonding system is in place, @FloorDAO will execute its first strategy using NFTX vaults, the “Floor Sweeping Flywheel”:
1. Acquire target NFTX vault tokens via bonds
2. Treasury deploys assets to provide liquidity and inventory

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3. Traders sweep floor NFTs to arbitrage rising vault token prices
4. Treasury receives yield from all of the trading volume and vault fees
This strategy could make FloorDAO a NFT liquidity black hole that market-makes and generates yield.

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So, FloorDAO stakes treasury owned PUNK liquidity (The first collection that will be bonded are Cryptopunks) in NFTX and earn fees on the trading.

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Next to bonding and rebasing, FloorDAO is looking into ve-nomics.
‘ve’ stands for ‘vote escrow’, a term popularized by @CurveFinance. It allows users to lock tokens for a period of time, usually up to 4 years, and receive voting power proportional to their locked tokens.

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Benefits:
- Tokens are continuously locked and taken out of circulation.
- Greater power is awarded to those who believe in the protocol long-term.

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For @FloorDAO the token-structure would look like this:
-$FLOOR = native token
-$sFLOOR = staked FLOOR
-$gFLOOR = wrapped $sFLOOR
-$veFLOOR = locked $gFLOOR

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Another mechanism that Curve has is “gauge”, where token holders vote on where $CRV emissions go. In FloorDAO, veFLOOR could be used to vote on the first “NFT gauges” and other protocol parameters.
With this, we could see an interesting dynamic to accumulate...

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...veFLOOR to e.g. have an NFT collection be included as a target asset for bonding or incentivize bonding of particular collections over others.
➡️ $FLOOR Wars? 👀

14/ Token sale
To kickstart the protocol, FloorDAO will have a LBP token sale on @Copperplatform on ETH Mainnet Feb 22th 5pm UTC for aFLOOR.
aFLOOR is a pre-launch governance token used to vote on protocol parameters. aFLOOR will be 1:1 redeemable for $FLOOR.

15/ LBP Parameters
- Token starting balance 500k aFLOOR
- Base token starting balance 500 ETH
- Starting weight: 96/4
- Ending weight: 40/60
- Length: 3 days

16/ Token distribution
Initial funding was done by a DAO-to-DAO loan from NFTX. For team incentives, FloorDAO follows the Olympus pOHM model with “supply share” vesting using a pFLOOR token. In the table and piechart we can see the pFLOOR token allocations.