Sweep War 🧹

The default Floor War is a Sweep War. Every two weeks (epoch) the current set of allow-listed NFT collections are put up for a vote to determine which collections will be swept with the week’s yield.

Users who have locked FLOOR to generate Sweep Power can use this Sweep Power to vote for one more collections

A special gauge is also available for a staked ETH token (LST), allowing holders to vote to retain the ETH yield and earn interest from staking.

Negative Voting

Users are able to negative vote collections that they want to liquidate from the treasury. Collections that have net negative votes at the end of the epoch are liquidated based on the negative share of the total vote. For instance, if a collection has -20,000 votes, and there have been 60,000 votes across other collections, 25% of the collection will be liquidated into ETH.

Proceeds from any liquidation are recycled back into the following Floor War(s).

Collections are only liquidated if their negative votes account for at least 1% of the total votes.

"Sweep Zone"

The DAO's NFT-Fi strategies (and future products) provide a sustainable source of ETH yield for the the Floor War sweeps. To ensure that the ETH yielded is not spread too thinly across collections, a threshold is set by governance to determine the number of top collections (as voted) to sweep each epoch.

This ensures that sweep sizes remain significant for the winning collection, and that communities remain supportive of their collection even after successfully winning a Collection War.

Yield Sources

The DAO generates yield from NFTX V2 and V3 and in the future, from its own NFT-Fi products. These yield sources are likely to expand in future version of the protocol.