gm sweepoooors, I’m Omnia, I co-head partnerships & BizDev at Redacted Cartel, and also Co-founded Protecc. We’ve spoken with the Floor DAO team to craft the best possible proposal that allows us both (Protecc x Floor DAO) to collaborate in a hyper-efficient way to further deepen liquidity for collections and their floors. I encourage you to read the post below and please, if you have any feedback, feel free to comment.
Protecc would like to formalize a partnership with Floor DAO to begin collaborating to further deepen liquidity across a variety of NFT collections. Ranging from newly minting collections, to Emerging Collections with growing volume and communities, and even Core “Blue Chip” collections that have solidified themselves as the largest players in the NFT space by market cap, and community size.
As mentioned in Protecc’s announcement post, Protecc aims to be a dedicated Ecosystem Partner and market maker for NFT collections, and aims to use existing MetaFi infrastructure like Floor DAO, to bolster liquidity for NFT collections. The specifics of the collaboration with Floor DAO involve passive liquidity pool management, in which Floor DAO would custody Protecc’s LP positions and optimize them if needed, compounding rewards, etc… This partnership will require constant communication with the Floor DAO core team in order to optimize properly for the collection, and its collectors needs.
Benefits of this partnership extend farther out than just passive LP management. As Protecc grows, it can offer custom lending parameters to Floor DAO’s portfolio collections, i.e. CryptoPunks might be able to access higher LTV ratios & attractive interest rates to borrow from Protecc, as it expands its lending capability and reach across the MetaFi vertical.
How This Benefits Floor DAO
This benefits Floor DAO in a multitude of ways:
Beginning with the fact that this is a new revenue stream for Floor DAO, to deploy its expertise in deploying and growing liquidity for collections, as Protecc and Floor DAO can come to a profit sharing agreement from the liquidity that Protecc provides to Floor DAO. This also grows Floor DAO’s “AUM” so to speak.
In the future, Floor DAO can vote to sweep and provide liquidity for collections that Protecc works with as these collections hit certain parameters, such as:
- Trading Volume
- Unique Holder Count
These parameters can be further expanded upon demand to explore new criteria to employ before Floor DAO decides to deploy capital to a collection that is working with Protecc.
Opening greater borrowing capacity for Floor DAO, and/or its collections exclusively (say Floor DAO were to borrow against its CryptoPunks, Milady’s, or any other collection holdings)
Protecc aims to be the de facto “launch pad” partner for Floor DAO, where collections pre-emerging status, that would like a research report done with fast track to potential inclusion in an Emerging Collections vote, must work with Protecc.
How This Partnership Benefits The Space: Liquid NFT’s Becoming The New Meta
As Floor DAO knows very well, liquidity for NFT’s is imperative. More entities like ourselves entering this space, and more importantly partnering with a ground-breaking project like Floor DAO, further solidifies this new meta. Joining arms in providing liquidity and strengthening best practices overall contributes to creating liquid markets for all of our JPEG’s, leading to even more capital efficient systems, and ultimately lower barriers to entry for new entrants to the space, birthing a never ending cycle of innovation and growth for the NFT space. At Protecc we don’t just view NFT’s for what they currently are, but what they can be, and what they can improve.
Capital Requirements for Floor DAO
No capital is required upfront from Floor DAO to facilitate this partnership. Protecc would give Floor DAO custody over its deployed LP assets should this proposal pass with support from the DAO. This serves to be risk-free income for Floor DAO as this partnership doesn’t include Floor DAO needing to use treasury assets to sweep a collections floor and provide liquidity.
In the future, should a collection that Protecc works with, that Floor DAO custodies, which meets Floor DAO’s Emerging Collection criteria be included in the vote and win with support from the DAO, Floor DAO can then choose to deploy its treasury assets to !sweep and provide liquidity to collections Protecc is working with.
Commitments from Protecc
- Non-stop, clear communication on optimization for the pools based on the collections needs.
- To execute the active strategy, and if Floor DAO were to have custody over Protecc LP’s it would be purely passive in nature, and require no further work from Floor DAO.
- To work with Floor DAO exclusively as our passive LP manager, purely on liquidity that Protecc owns.
- To engage in a profit sharing agreement with Floor DAO (10% of yield - IL, meaning that Floor DAO isn’t responsible for any IL that the pool incurs) that delivers great value to the DAO as a whole, and keeps the DAO’s best interests at heart when engaging Floor DAO for LP management.