FIP#42 - Floor Nascent Strategies Addition Process

Governance
1

Summary

This proposal aims to establish a framework for testing new yield generation strategies in the Floor treasury through the allocation of capital to emerging NFT-Fi projects and protocols. Floor will deploy a set amount of capital over a predefined “season” to a cohort of NFT-Fi projects offering financial primitives.

These projects will then be assessed by the treasury team based on yield generated, and the most effective/beneficial ones will be integrated into Floor’s treasury strategy with the goal of supporting the growth and innovation of NFT-Fi.

This allows for new financial primitives to emerge with Floor liquidity as a baselayer, placing the DAO and its treasury in an advantageous role for progression in the NFT-Fi ecosystem and cements the DAO’s voters as key voices in the future of the market, all while earning the treasury real yield.

Motivation

Despite numerous high quality NFT-Fi projects, the Floor treasury team has been cautious in adopting new protocols due to potential and confirmed added risk, one example being the Euler Protocol exploit. Though assets were returned to the treasury, the exploit demonstrates the risk the DAO takes on. This proposal allows for the team to test new strategies and contribute to the NFT-Fi ecosystem’s growth while maintaining a risk-conscious approach.

Proposal

The first season will focus on the liquidity primitive. Floor will allocate $50,000 to five projects, totaling $250,000 USD in token equivalents (ETH/MILADY/USDC and so on). Liquidity deployment strategies will be tailored to each project through close collaboration between the Floor treasury team and the nascent protocol teams. These five products will be included in a follow-up proposal and/or the official Snapshot vote for this proposal.

Floor will maintain custody of and manage all funds through the use of a 2 of 3 multi-sig wallet.

Effectiveness will be measured bas on:
Yield Generated (ETH)
Risk Control (the ability to control impermanent loss and other risk factors)

At the end of each “season”, a write up will be publicly shared, contributing to Floor’s role as an NFT-Fi knowledge database.

The Snapshot for this proposal will go LIVE 24hours after posting (5/5/2023)

2

bro, what are the projects and what are the benefits of investing in them?

3

I cannot vote for this proposal without more specifics on which projects will be invested in.

I think there should be process detailed for input by FLOOR holders, ie, FLOOR holders should have a process for pulling out of an investment, or allocating to a new one.

4

That will be part of the next proposal. Here we are digging into the format of testing different projects “apples-to-apples” so that we can have data supporting different treasury strategies.

But I would expect the liquidity projects to be NFTX and Sudo with other emerging projects like Collection.xyz rounding out the 5.

5

So this is just a broad strokes proposal to get holders to approve $250k capital to invest into investments that will be determined later?

6

“These five products will be included in a follow-up proposal and/or the official Snapshot vote for this proposal.”

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7

So this isn’t really a proposal then?
Are we voting that we should later vote about 5 projects to support?

Why not just vote each of the projects in 1 at a time? Seems way simpler and less contentious.

8

This is a concise format for how to create a testing environment where we can measure the effectiveness of emerging NFTfi protocols.

The result will be data on which projects are the most effective towards Floor’s driving metric of Yield Generated.

The next proposal will be choosing which projects will take part in the experiment.

1 Like