FIP#75 FloorDAO PUNK Migration NFTX V2->V3


Recommend migrating the existing Floor DAO NFTX Punk position to NFTX V3 and creating 3 new concentrated liquidity positions and 1 staked inventory position. This will achieve the following:

  1. Maintain an ongoing pool on V3 similar to the current V2 pool
  2. Free up ~370ETH for Floor DAO to repurpose
  3. Earn ETH fees from V3 on any Punk trades


FloorDAO currently has approximately 1,691.97 ETH allocated to the PUNK position, with a breakdown of

  • 13.5 PUNK paired with 753.513 ETH
  • 3.331 PUNK staked in inventory

Previous proposals to sell off PUNK holdings to free up ETH for other strategies

NFTX V3 Concentrated Liquidity

With the new version of NFTX you can now create concentrated liquidity positions allowing a better capital efficiency using existing liquidity provision. NFTX V3 is integrated into Reservoir already and will be shortly available in OpenSea Pro (with more integrations in the works). By changing the positions from supporting a price from 1wei to 20 quadrillion ETH (Uniswap V2) it now supports concentrated ranges of your choice (Uniswap V3).


The new vault can be found here Buy, Sell, and Swap NFTs instantly on NFTX V3. NFTX has begun migrating their liquidity across to bootstrap the vault, currently 1 Punk has moved to inventory staking and a further 5 to Liquidity staking at two different ranges.

The fees are set to 1.5% for buys/sells/swaps, and this fee is paid out in ETH to the current liquidity providers based on how much of your liquidity was used in the trade.

Suggested Steps

  • Migrate 100% of the current xToken staked to V3 Inventory staking(3 Punks)
  • Migrate 100% of the existing V2 liquidity and unwind the SLP (approximately 13.5 PUNKS and 753.513 ETH)
    • Sidenote: you can only migrate whole units, so it would be 13 PUNKS migrated across to start with and leave the other 0.5 in the SLP pool. NFTX will create a 1:1 V2-PUNK:V3-PUNK 0.01% Uniswap pool for swapping over existing tokens and arbing between protocols.
  • Use the NFTX Migration Zap to bypass any fees and timelocks associated with having to stake inventory.
  • Create 3 tier liquidity positions to maximise efficiency of ETH
vToken ETH Lower Amount Higher Amount
Punk -25%<->60% 6 221.5775628 41.75475815 88.92342579
Punk -25%<->100% 4 105.2557149 41.75475815 111.404173
Punk -25%<->200% 3 54.37255897 41.75475815 166.9583061
Total 13 381.2058367

Note: at these ranges if you drop below the 41ETH lower range FloorDAO will be holding all PUNK and no ETH. If they go above any of the “Higher Amount” ranges FloorDAO will be all ETH and no PUNK.

The approach frees up approximately 372 ETH from the current FloorDAO NFTX V2 PUNK position for application to other areas of NFT liquidity or NFT-Fi. This proposal will not cover the use of the spare ETH liquidity, but some options include:

  1. Create a ETH only PUNK position to DCA into punks during a pricing retrace
  2. Allocate this to ongoing new collection additions
  3. Allocate the funds to the 15ETH fortnightly sweep to increase the runway, almost another 6 months extra.
  4. Provide ETH to other De-Fi initiatives (for example the Gondi proposal)

This proposal is leaving the non-whole PUNK (v2) tokens as NFTXV2 position to allow any PUNK fraction holders to buy enough PUNK (v2) to make up a whole item, or to sell off their fraction.

Current Market

The current market for PUNK is always fluctuating therefore the below numbers will change over time, however this provides a general overview on the improvements that will be made.

Marketplace Buy Sell Difference Floor Price Floor difference
PUNK/ETH 57.6 54.37 5.77% 56.5 1.93%
FP 56.7561 51.88 8.98% 56.5 0.45%
BLUR 57 50.09 12.91% 56.5 0.88%

The Flooring Protocol BID/Sell price is 51.88 ETH and the Blur bids are 50.09 with a depth of 3. The listing (buy) price is 56.7561 and 57.0 respectively.

The NFTX price would be 54.37 for a sell and 57.6 for a buy (including 1.5% vault fee paid in ETH and the 0.3% AMM fee). This places the NFTX V3 vault with the closest buy/sell spread and highest instant sale price (note that this is before NFTX migrate the remaining liquidity across from Sushi, so the price will improve and the difference will narrow further).

Potential Discussion Points

  • Concentrated ranges — these can be changed, but with any changes there will be an impact on the amount of ETH required for pairing.
  • Operational cost — aside from the personnel costs, it is estimated that migrating and creating the positions will cost approximately 1ETH.
  • NFTX V3 security — the new protocol has gone through two audits and is running an Immunefi bug bounty program. NFTX has already migrated 6 punks and paired with 105ETH (TVL ~ 440ETH) into the protocol.

Out of scope

Although some potential uses were mentioned, anything related to the purpose/use of the freed up ETH are not related to this proposal.


Yes — Approve proposal for Snapshot vote
No — Amend proposal (leave a comment)

The polling process begins now and will end at 15:00 UTC on 2024-02-27 (7 days).

After this, a Snapshot vote will begin shortly after the end of this poll.

  • Yes, Approve proposal for snapshot vote
  • No, Ammend propoal (leave comment)
0 voters

Really like the proposal!

I think in the short term, whilst V3 continues to be integrated into marketplace platforms, AMM routes, etc. there may be a shortfall in yield, but PUNK isn’t the most active strategy and the released ETH from our positions more than makes up for this.

Long term this will give much better flexibility and we have positioned ourselves within NFTX pools since day 0. I don’t see a reason not to grow with them now.

I know usage of the released ETH falls outside this proposal, but I’d potential say that we should either buy V2 PUNK to round up our inventory position and migrate that as well, or liquidated the remaining V2 inventory “dust” as that will remove the need to manage 2 positions across different platforms.


This proposal makes a lot of sense and thanks for collecting and presenting all this data @javery!

I think unlocking ETH for future DAO initiatives/runway/sweeps is pragmatic. The downside is that we risk going out of range and in a CryptoPunk bull market we lose all exposure to the asset. Given that CryptoPunks are currently the top most voted collection in the Floor Wars this would likely be extremely undesirable for the majority of holders.

That said, CryptoPunks have ranged between 50-100 ETH for a considerable amount of time and (historically) is the perfect asset to provide more capital efficient concentrated liquidity.

The lower bound is easy to rationalise - would the DAO be happy holding unyielding PUNK tokens if they were to dump below 41.75 ETH?

The upper bound is a little harder - is the DAO happy exiting PUNK at 166 ETH, or exiting ~half at 89 ETH?

What are the advantages of splitting out the LP position across multiple ranges? I feel like the vote would be easier if as a DAO we can agree on two questions:

a) what PUNK price are we willing to be 100% PUNK
b) what PUNK price are we willing to be 100% ETH

For me personally it would probably sit somewhere around the 30E - 200E range, but conscious that would significantly reduce the freed up capital (although as an aside, I don’t believe the DAO is in any urgent need of capital currently).

a) what PUNK price are we willing to be 100% PUNK
b) what PUNK price are we willing to be 100% ETH

These are really key questions to moving forwards.

Given the 30-200E range (adjusted for ticks) you would be looking at a 13 PUNK // ~420ETH position which still free’s up around 330ETH for the DAO based on the current infinite range position on V2.

Upsides for a single wider range

  • Lower risk of going out of range
  • Only need to manage a single position

Downsides for a single wider range

  • Reducs the LP impact on buy/sell price spread
  • Reduces the yield opportunity

A tighter range based on historical performance will maximise the efficiency of the liquidity used to tighten spreads to ensure the vault is more likely to be used more often, and it also means that the position will receive a greater portion of the generated yield (both in AMM and vault fees).

Another option could be to split across two positions to minimise the risk while maximising the potential (these are just examples, exact numbers and ranges should be discussed further).

9 PUNK / 290E

4 PUNK / 125E

This would be 415E used which is a little less than the single wider range position, but would mean more fee yielding opportunites.


hey everyone it’s Tom here from Charm Finance ( Have been following FD and NFTX for a while, and also been researching PUNK/WETH liquidity lately. Really like this proposal, as NFTX V3 will allow FD treasury to free up lots of ETH (and PUNK) that is tied up in liquidity pools.

The tricky thing with migrating to V3 is you’ll have to chose ranges, so it’s not as simple to use as V2. This is where I think creating Charm vaults may be useful, as it gives you the simplicity of Uniswap V2 and still have all the benefits of Uniswap V3.

From the price action of PUNK/WETH on Coingecko, I can see that over the last 3 years, the price of PUNK is around 40ETH to 125ETH, so I think if ranges are always around 12000 ticks wide it should cover worse case price movements (ie 3x increase, or 70% decrease).

In addition, I’ve noticed the worst case single day pump or dump is from 125ETH to 20ETH, so I think single sided liquidity of around 30000 ticks (ie 20x increase in price, or 95% decrease) can protect the vault from IL, as large price movements like this will go into a very wide range, so IL is limited, AND you get back assets to restore the inventory closer to 50:50 (the state with the least IL).

To protect from further unexpected price movements, you can also put some liquidity (eg 20% ot total liquidity) into full-range, so that there will always be liquidity no matter what happens.

The ranges above will be very difficult to chose and execute manually. However, by setting up a Charm Vault, it can do all of it on your behalf. LP will just need to deposit and withdraw, and the vault will chose the ranges automatically.

I did some simulations using the following parameters below, based on the existing WETH/PUNK pool on Uniswap V3:

Base = 5600, Limit = 30000, Full-Range = 20%, Rebalance Period = 7 days

A Charm Vault with the above parameters will automatically chose 71 ranges over 2 years. This is visualised below:

The vault will be on average 2.76x more capital efficient than Uniswap V2. Which means FD can free up 64% of their liqudity at V2 (so around 8.64 PUNK and 480 ETH). The capital efficiency improvements is visualised below:

The sim also shows the above is achieved with no losses to LPs, because the LPs have a gain of around 1.8% vs HODL:

Screenshot 2024-03-05 at 10.46.57

The vaults can be set up permissionlessly at, and after setting it up you can leave it on auto-pilot and it’ll automatically chose the ranges. You only need to intervene when you need to change the parameters (eg if you have a different view of how the price may move).

We think an easy-to-use solution like this will help FD migrate liquidity from NFTX V2 to V3, and free up around 8.64 PUNK and 480 ETH for Floor DAO.

Would like to discuss further if it’s of interest. Thanks!!