What is FloorDAO? FloorDAO is a Defi protocol on Ethereum that aims to create deep liquidity for NFT collections supported by FloorDAO. So what’s special about this project? Let’s find out with Weakhand in this article.
What is FloorDAO?
FloorDAO is a Defi protocol on Ethereum that aims to create deep liquidity for NFT collections supported by FloorDAO. Currently, FloorDAO only supports 3 NFT Blue Chip collections: BAYC, CryptoPunks, Milady.
FloorDAO uses the Bond & Rebase mechanism pioneered by OlympusDAO to efficiently accumulate NFT liquidity, which is then strategically deployed on NFTX and SushiSwap to generate yield.
How does FloorDAO make profit? First, I will talk a little bit about NFTX so everyone can understand how FloorDAO makes profits.
NFTX is a platform that helps users trade NFTs by creating ERC20 tokens for NFT collectibles. Users deposit their NFTs NFTX vault to mint an ERC20 token called vToken 1:1 ratio represents that NFT. Users can use this vToken to trade on SushiSwap normally or can pool vTokens to buy back NFTs on NFTX.
The weakness of this model is that vToken’s liquidity is not guaranteed. FloorDAO takes advantage of that to create deep liquidity for the NFT collections contained in FloorDAO’s Treasury and generate profits from the following 2 sources:
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Transaction fees from FLOOR-ETH liquidity provision.
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Transaction fees from xNFT and xNFTETH liquidity provision are detailed as follows: Fees from vToken mint and NFT redemption on NFTX, liquidity provision fee on SushiSwap.
So who receives the profits from FloorDAO? Let’s find out together.
What is the FloorDAO Difference?
One of the main mechanisms that FloorDAO uses to accumulate liquidity is Bonding. Through Bonding, users can sell the NFT asset, vToken to FloorDAO’s Treasury and receive FLOOR tokens at a discounted price for a period of time.
In addition, users can Stake FLOOR tokens into the Treasury to receive 1:1 sFLOOR and Rebase rewards. Rebase rewards are profits from the protocol and FLOOR tokens. FLOOR tokens received more or less depend on the value of assets in FLoorDAO’s Treasury. As asset value increases, DAO will mint new FLOOR tokens and distribute them to Staking users. This encourages users to deposit more assets into the Treasury.
Core Team
FloorDAO is built by the NFTX team and a number of other members. It can be seen that NFTX built a project on its own to fill the gap of NFTX in terms of liquidity.
Investor
Update…
Tokenomics
Basic information about tokens
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Token Name: FloorDAO
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Ticker: FLOOR
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Blockchain: Ethereum
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Contract: 0xf59257e961883636290411c11ec5ae622d19455e
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Token Type: Utility, Governance
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Total Supply: no Supply.
Token Allocation
Token Release
Update…
Token Use Case
Users can Stake FLOOR tokens on the platform to receive rewards and sFLOOR.
Staking sFLOOR tokens to receive gFLOOR – used to vote for activities on the platform.
Exchanges
FLOOR tokens can be traded on both DEX and CEX exchanges such as: BKEX, Uniswap (V3), Bilaxy.
FloorDAO Project Information Channel
- Website: https://floor.xyz/
- Twitter: https://twitter.com/floordao
- Discord:
summary
FloorDAO has a novel direction to generate profits for users and close the connection between Defi and NFTs. The NFT market is a market with great growth potential and the introduction of NFT into Defi is creating a new breeze for the Crypto market. Hopefully this article has helped you understand a bit about FloorDAO.