Summary

Recommend migrating the existing Floor DAO NFTX Punk position to NFTX V3 and creating 2 new concentrated liquidity positions and 1 staked inventory position. This will achieve the following:

• Maintain an ongoing pool on V3 similar to the current V2 pool
• Free up ~370ETH for Floor DAO to repurpose
• Earn ETH fees from V3 on any Punk trades

NFTX V3 Concentrated Liquidity

With the new version of NFTX you can now create concentrated liquidity positions allowing a better capital efficiency using existing liquidity provision. NFTX V3 is integrated into Reservoir already and will be shortly available in OpenSea Pro (with more integrations in the works). By changing the positions from supporting a price from 1wei to 20 quadrillion ETH (Uniswap V2) it now supports concentrated ranges of your choice (Uniswap V3).

NFTX V3 PUNK Vault

The new vault can be found here Buy, Sell, and Swap NFTs instantly on NFTX V3. NFTX has begun migrating their liquidity across to bootstrap the vault, currently 1 Punk has moved to inventory staking and a further 5 to Liquidity staking at two different ranges.

The fees are set to 1.5% for buys/sells/swaps, and this fee is paid out in ETH to the current liquidity providers based on how much of your liquidity was used in the trade.

Liquidity ranges

Two liquidity positions will be created

1. 9 PUNK / ~290E @ 29.66<>201.08
2. 4 PUNK / ~125E @ 44.87<>85.26

Note: These positions are based on discussions from the forum and the The Floor DAO treasury/core team may adjust the ranges to suit the best possible yield opportunities. The also may decide to deploy the positions onto NFTX V3 through Charm managed vault positions.

Steps

• Migrate 100% of the current xToken staked to V3 Inventory staking(3 Punks)

• Migrate 100% of the existing V2 liquidity and unwind the SLP (approximately 13.5 PUNKS and 753.513 ETH) Sidenote: you can only migrate whole units, so it would be 13 PUNKS migrated across to start with and leave the other 0.5 in the SLP pool. NFTX will create a 1:1 V2-PUNK:V3-PUNK 0.01% Uniswap pool for swapping over existing tokens and arbing between protocols.

• Use the NFTX Migration Zap to bypass any fees and timelocks associated with having to stake inventory.

• Create 2 tier liquidity positions to maximise efficiency of ETH

The approach frees up approximately 372 ETH from the current FloorDAO NFTX V2 PUNK position for application to other areas of NFT liquidity or NFT-Fi.

Timeframes

The following timeframes allow Floor DAO to slowly move their positions across to the NFTX V3 protocol. Position 1: 29.66<>201.08 Position 2: 44.87<>85.26

March

1. 1 Punk
2. 1 Punk

April

1. 2 Punk
2. 2 Punk

May

1. 6 Punks
2. 1 Punks

At any point the FloorDAO core team can expedite the migration.

Out of scope

• Anything related to the purpose/use of the freed up ETH are not related to this proposal.

Points of note

The split in liquidity across V2 and V3 has not stopped the ongoing fee generation of PUNKs. In the past 7 days V2 has seen four punk mints which yield 0.04 PUNK tokens (approximately 2ETH), and the V3 vault has had two punk sales yielding 1.5ETH in fees.