TL;DR
- FloorDAO is the missing piece of the NFT + DeFi puzzle by building a DeFi 🤝 NFT product to generate deep liquidity for blue chip NFT collections, starting with CryptoPunks.
- FloorDAO aims to become the largest decentralized NFT market maker through the use of Protocol Owned Liquidity and NFTX to earn high yields for its treasury.
- More in depth details including the fair token launch, tokenomics, yield generation, advisors, dates and more to follow.
- In the meantime — join and contribute on Discord and follow @FloorDAO on Twitter.
Have you ever wanted to purchase an NFT but passed because they lack the high yields or capital growth that can be found in DeFi?
Up until now the NFT market has largely relied on matching buyers and sellers on centralized marketplaces like OpenSea where sellers heavily undercut the floor price to achieve instant sales and buyers pay premiums on the spread, leaving both parties out of pocket.
The fees from this trading activity flow back to the centralized controllers of the exchange and not to the users who provide highly valuable liquidity and volume.
This is about to change…
Enter FloorDAO
FloorDAO’s vision is simple — bridge the gap between DeFi and NFTs, creating novel yield strategies and use-cases.
To do this, FloorDAO is going to disrupt how the current NFT market operates by stepping in as the largest decentralized NFT market maker and providing:
- Deeper (and instant) liquidity for NFT holders.
- Composability with DeFi and other use-cases.
- Protocol owned liquidity to strengthen floor support for NFT collections.
The First Decentralized NFT Market Maker:
FloorDAO will sweep the floor inventory (through Olympus-style bonding) of community-voted blue chip projects to create deep liquidity for the collection. This liquidity allows traders to instantly buy, sell and swap their assets with marketplace fees that flow back to the FloorDAO treasury.
FloorDAO members will in turn reap the rewards of high yields by unlocking NFTs as a yield-generating asset class.
This Sounds Complicated — How Will It Work?
Decentralised exchanges such as NFTX already exist for NFTs and they use the underlying mechanism of Uniswap V2 to create instant liquidity for buyers and sellers. NFTX works by pooling NFT floor items together in a vault, which mints a fungible ERC20 token i.e. PUNK that can then be traded on exchanges like Sushi. These tokens are backed by the vault’s NFTs and can be burned to redeem NFTs from the vault.
From this mechanism a marketplace emerges, where buyers purchase PUNK on Sushi to redeem CryptoPunk NFTs from NFTX and sellers mint PUNK from their CryptoPunk NFTs on NFTX to instantly sell on Sushi.
Market makers earn the Sushi trading fees but more importantly they also collect the NFTX vault fees, which are paid in the vault token. NFTX fees range from 1–10% depending on the vault and yields are often in excess of 100% APY.
Decentralised exchanges like NFTX have existed for a while but lack deep liquidity for these tokens, holding them back from wider market adoption in the DeFi world.
FloorDAO will create deep liquidity for these community-voted blue chip NFTs — starting with CryptoPunks.
FloorDAO’s Protocol Owned Liquidity
The success of OlympusDAO and Fei Protocol have demonstrated the enormous potential of Protocol Controlled Value or “Protocol Owned Liquidity” (POL).
Rather than holding idle assets on the FloorDAO balance sheet or integrating with DeFi protocols for relatively low yield on stablecoins and ETH, all NFT assets will be put to use for market making in decentralized NFT marketplaces with yields that regularly exceed 100%.
More in depth look and entails introducing $FLOOR’s tokenomics, fair token launch and yield generation strategy to come.
Built by The Best
The DAO has been conceived, built and driven by a founding group of individuals with expertise in creating polished DeFi and NFT products and a core vision to unite the two together.
The team’s vision has been complemented by in depth guidance from NFTX, OlympusDAO and other advisors from the NFT and DeFi universe.
