FloorDao treasury will implement a systematic framework for targeting weighting strategies to inform allocations per collection and per yield strategy. Some weights are set analytically such as floor_marketcap, while some may be set based on team and DAO input. All targets represent guidance and not hard rules.
A: Baseline spot liquidity
- All collections voted into the Treasury will have baseline spot liquidity allocation targeting a floor_marketcap (collection size * floor price)
- This means allocating more for higher floor_marketcap collections
- Generally, we seek to improve slippage in our voted collections to catalyze the fee flywheel and MetaFi building blocks
- Aside from extreme occasions such as the MAYC Otherdeed airdrop claim, our default is to never pull spot LP liquidity
B: NFTX vaults as core strategy
- After baseline spot liquidity, for additional allocations within NFTX vaults for inventory (IP) or spot liquidity (LP) as determined by voting or otherwise, we target highest expected marginal yield (within collections and across collections)
C: Non-Core Strategies to generate ETH
- We will lean into a variety of ‘metafi’ protocols that generate ETH in the best risk-adjusted manner, as we need ETH for LP compounding and sweeping when we prefer not to bond (MC < TV)
D: Reserves
- We will hold excess reserves in a mix of stables (USDC for now) and ETH for operational runway
E: $FLOOR support when MC < TV
- When the circulating $FLOOR market cap is less than Treasury Value, we may use ETH or NFT yields to conduct market operations to bring MC back to parity with TV
- We won’t consider this when MC >> TV