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Treasury
Generate yield from NFT liquidity
The FloorDAO treasury generates yield from two sources:
  1. 1.
    Trading fees from providing FLOOR-ETH liquidity
  2. 2.
    Trading and staking fees from providing staked xNFT and xNFTWETH liquidity (staked NFTX positions)

FLOOR-ETH

The first source of revenue, FLOOR-ETH, is the standard model for a protocol “owning” its own liquidity to maintain sufficient liquidity and reduce price volatility.
To start, FLOOR-ETH will use a Uniswap v3, 1% fees, full range pool. The plan is to move to a managed concentrated liquidity position soon afterward.

xNFT and xNFTWETH

The second source, xNFT and xNFTWETH, is the primary NFT yield-generation strategy leveraging NFTX vaults. The first NFT asset is PUNK (CryptoPunks) and its corresponding xPUNK and xPUNKWETH positions, which represent a staked PUNK and staked PUNK-WETH Sushi LP positions in the NFTX vault. These positions receive yield from the following actions:
  • Trading fees (0.3%) from PUNK-WETH Sushi LP
  • Mint fees
  • Random redeem or swap fees
  • Target redeem or swap fees
The exact fee structures are subject to NFTX governance but can range up to 10% per action.
The more volume that goes through the NFTX vault, the more yield will be generated for the treasury.
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FLOOR-ETH
xNFT and xNFTWETH