To Acquire $gFLOOR, Or To Directly Improve NFTX Liquidity

Voting ended over 3 years agoSucceeded

Proposal to allocate 10 ETH from the treasury to either provide liquidity on NFTX, or to acquire $gFLOOR so we can vote for Floor DAO to provide liquidity for us.

Current Liquidity:

In November 2021, the DAO was approved to provide 10 ETH in liquidity on NFTx to make Bastards more liquid and ultimately less risky for collectors. The Bastard DAO has 8.17 xBGANWETH in its treasury. And the DAO has accumulated more than 6 $BGAN from fees.

Bastard DAO’s average $BGAN cost is 13.88 at about 0.36 ETH source.

Why Liquidity is Important:

Having more liquidity for NFTs means there is less slippage when buying and selling. The biggest pro here is that it reduces risks for collectors. So instead of being forced to undercut the floor, collectors who are forced to sell can instead sell directly to the NFTX Vault. This also creates arbitrage opportunities between the Vault, the NFT20 pool, and other NFT markets, which increases volume and revenue for the DAO. Increased liquidity also allows for the potential to collateralize NFTs (see Rari Capital and Forgotten Runes Wizard Cult).

About Floor DAO:

Floor DAO is on a mission to provide deep liquidity across the NFT space. They’ve acquired positions in the $PUNK, $MAYC, $WIZARD, and $MILADY NFTX Vaults. They generate revenue through NFTX staking rewards, and Vault trading fees, which they use to compound those positions. They are not selling. And do not plan on selling.

So instead of selling treasury assets, their "primary mechanism for accumulating liquidity is through "bonding". Users sell single sided or liquidity assets to the treasury, and in return acquire $FLOOR at a discount, vested over a period of time." source

What is $gFLOOR?

$gFLOOR is their staked, wrapped governance token, which is what is used for voting. For Bastard DAO to acquire it, the DAO should bond ETH for discounted $FLOOR, stake the $FLOOR tokens, then wrap them into $gFLOOR.

How does having gFLOOR in the treasury benefits the Bastard DAO?

The biggest perk here is it incentivizes Floor DAO to put Bastard GAN Punks V2 on the ballot and it gives Bastard DAO a large vote in our favor. It also incentivizes other collections to work with us for future votes through bribes or buying Bastards directly to have a vote in our DAO.

Floor DAO currently has an open vote to “Establish a partnership with Redacted Cartel via Redacted’s Hidden Hand and its forthcoming platform, Pirex” source. This is a more official way than their current over the counter system of handling large bribes. Where the bribe is escrowed by Redacted Cartel.

There is also a social advantage here for both DAO's as well. There will be a large overlap in members who want both communities to succeed. It is also an opportunity to grow and build relationships on both sides.

What are the risks?

Floor DAO is young, but the team is primarily the same as NFTX. This also means that Bastard DAO would be among the first DAO's to acquire their token. And with their token we would not only have a voice in what other assets they bring into their treasury, but also on future partnerships and ultimately in the future growth of Floor DAO.