Bonding
Bond NFT liquidity to receive discounted FLOOR
The primary mechanism with which FloorDAO accumulates liquidity is through "bonding". Users sell single sided or liquidity assets to the treasury, and in return acquire FLOOR at a discount, vested over a period of time.
The bonding assets will be chosen by the Policy team and be focussed around acquiring the most valuable assets for the FloorDAO at that time. This could be vault tokens (i.e. MAYC, WIZARD, PUNK) to help improve the FloorDAO single sided staking, or it could be WETH to help pair those vault tokens to improve the liquidity pool staking or increase the reserves to sweep new collections.
Premium vs Discount Bonds
The discount amount will vary depening on
Current $FLOOR price
Length of the bond (how long until it ends)
Amount of the bond already purchased
When bonds are first created they offer a discount on the FLOOR price (see the MAYC bond example in the image below). This is denoted by the label "DISCOUNT" and the amount discounted in green.
If someone buys up a large porition of the bond then it will go into a premium, meaning that you will pay MORE for each FLOOR token by bonding than you will if you bought it directly (see the WETH bond example in the image below). This is denoted by the label "PREMIUM" and the amount extra paid in red.
The discount grows (or the premium decays) over time, however someone bonding will reset the discount to the lower amounts (or set them to a premium). The rate of the improving bond is impacted by
Current FLOOR price
Time until the bond closes
Amount of the bond already used
Governance will determine additional assets to be accepted by the FloorDAO treasury.
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