What is FloorDAO?

FloorDAO is a Defi Protocol based on NFT collections. It provides liquidity for NFT projects (Decided by DAO) and also deepens the liquidity of NFTX pools (Another defi-NFT project). FloorDAO is built upon NFTX which means you can bond your NFTX positions or your original NFT to receive vesting FLOOR token.

See This for a better understanding of FloorDAO and This to know NFTX

What is bonding?

bonding is the primary action in which FloorDAO accumulate liquidity whether NFT liquidity or WETH. It works like this:

Users are able to bond (Almost identical to selling) their assets to FloorDAO treasury and get a vesting amount of FLOOR tokens. This is actually one of few ways that FLOOR is minted. These tokens also can be staked initially to receive rebase rewards too.

Why would users want to bond?

The bigger gets the size of treasury, more it gains from NFTX and more rewards will be distributed through rebase. Also by bonding there is a good chance to acquire $FLOOR token at a decent discount. This is the main incentive which only makes sense when you are long on FLOOR.

What are we looking for?

Well, simply put we want to see how users behave regarding to bonding a special collection. I chose Crypto Punks as the example since they were the first collection on FloorDAO.

I am going to see what forms of crypto punks assets were bonded and how much FLOOR was minted as result. Also taking a look at top liquidity providers of WETH/FLOOR pool on UniSwap DEX.

Contracts

0x08765C76C758Da951DC73D3a8863B34752Dd76FB - xPUNK

0x269616D549D7e8Eaa82DFb17028d0B212D11232A - Crypto Punks (PUNK)

0xFB2f1C0e0086Bcef24757C3b9bfE91585b1A280f - xPUNKWETH

0x0463a06fbc8bf28b3f120cd1bfc59483f099d332 - SushiSwap Punk LP

0xe1d71b60642d597e6e3dbf6d0cd106ac3cfa65fa - Bond Deposit

0x91E453f442d25523F42063E1695390e325076ca2 - Treasury

Data & Analysis

I checked to see if there was any SP sold directly to treasury but couldn’t find a case in NFT databases. So I’m assuming for CP bonding users only used their NFTX positions which you can see their contracts above. These are essentially products in various stages or different modes of staking (like liquidity staking or inventory staking) from NFTX. In the front Table you can see how much of each product was bounded to FloorDAO treasury.

As mentioned before bonding these assets /positions will result in receiving vesting FLOOR tokens.

• On March 3rd most floor minted reflecting CP bonding.
• March first half was great as the protocol launched and was hot in the beginning. But it eventually cooled down and had no transaction for almost a month!
• Starting from May CP bonding is closed and hasn’t opened yet.

Aside from NFT liquidity, there is a FLOOR/WETH pool on Uniswap which is essential for FloorDAO. I couldn’t make sure how the liquidity for this pool is provided (Maybe using the fund that came from NFTX DAO that granted for FloorDAO?) but there are some addresses that are responsible for most share of this pool

• Also you can see that there has been few cases of adding liquidity to this pool in past 3 months; which probably suggests that users prefer to stake their FLOORs to receive rebase rewards rather than adding it to the pool to receive trading fees.

Conclusion

It is hard to say if bonds being closed for the past two month had any effect on a big and well known project like CP. But it is also undeniable that there could be significant effect on best days and also the potential NFT buying that may be voted by the DAO for where to spend the treasury fund.

It seems that FloorDAO is still under the shadow of NFTX and Users still find it more interesting to sell on NFTX than bond on FloorDAO

Contact

Analysis by freemartian.eth

Twitter: @cryptonut24

Discord: Kianrequiem#5594

Email: kiankhorsandi@gmail.com