Hey all, tamagoyaki from Putty Finance here!
Putty is an options platform specializing in put options for NFTs launching to mainnet on April 30th. NFT holders can purchase put options (insurance) for their NFTs, and sellers can earn yield in the form of premiums by filling put option orders with ETH. If the buyer exercises their option, the underlying NFT is sent to the seller and the ETH that the seller filled the order with is sent to the buyer. Multiple NFTs can be wrapped into a single contract.
FloorDAO is very bullish on Forgotten Runes Wizards Cult and has a large Wizards position. Therefore, FloorDAO can earn significant yield by providing sell side liquidity to open FRWC orders. If the put options are exercised, you get the NFT and can LP it like you have done in the past. If not, you collect a sizable premium.
The goal is to execute a trial run where FloorDAO provides sell side liquidity for a monthly put option containing Wizards NFTs. If successful, we could set this up to be a recurring transaction with larger size if requested.
Goal: FloorDAO provides ETH as sell side liquidity for a put option to collect a premium
Trial Collection: Forgotten Runes Wizards Cult
A strategic partner of Putty has a large Wizards holding → they have commited to providing buy side liquidity for Wizards
FloorDAO has ETH they can fill the order with → would provide sell side liquidity
Trial Run Requirements:
Assuming 1 ETH == $3000, 1 FRWC == 2.5 ETH
FloorDAO commits to selling a 1 month option at one of the aforementioned strikes. For 5 FRWC, the monthly yield can be up to 11.54% depending on the agreed strike price. FloorDAO can use this in future contracts, expand their liquidity, or choose to continue with the starting amount.