Our current mandate reads as follows: Floordao will NOT a) market sell NFTX tokens nor b) pull LP from collections.
We seek to propose a new strategy which technically violates the above statement, although we (the core team) argue it preserves its spirit. The strategy is as follows:
- provide a concentrated-liquidity-position (CLP) “above market” consisting 100% of NFTX-TOKEN
- maintain the CLP until either X days pass OR the CLP completely exchanges NFTX-TOKEN for ETH
- pull the CLP
In essence, this is identical to providing a limit sell order over some range/price-curve above the current market price.
Why Floordao might want to do this:
- to get more eth from tokens (in environment where we prefer not to bond) to help support more flexible treasury operations
- to sell collections we deem we are over-weight according to our current treasury program allocations, but NOT provide immediate sell pressure on them
- to learn about alternative LP strategies and their dynamics
Why Floordao might not want to do this:
- provides incremental sell-pressure on our treasury as the market price rises
- takes away our capital from other yield generating strategies
We welcome community feedback on the topic, and may consider a signal-vote to ratify this as an always on strategy. For now we likely will plan to move forward with no more than a 100 eth allocation before advancing from pilot status.
- JP