Revolutionizing NFT Trading: Introducing µToken/FLC Pairing on Floor Protocol
We are thrilled to announce that in January 2024, Floor Protocol will relaunch with a groundbreaking new model linking our governance token $FLC with the valuation of leading NFT collections through µToken pools.
Reward Changes : More rewards will be allocated to projects with Vocality & Volume.
Factoring volatility creates agile feedback loops between usage and rewards in our ecosystem. By dynamically increasing rewards during turbulence, it maintains attractiveness of providing liquidity when it’s needed most to avoid depletion threats.
This ensures sustainability by fluidly getting liquidity providers where they are valued most at any moment based on the ever-evolving state of the market.
The volume and volatility variables serve another function — compensating for loss aversion tendencies causing liquidity providers to abandon pairs temporarily during market contractions.
Essentially, our dynamic rewards counteract short-term thinking by providing the right incentives when irrational instincts typically take over.
Join our journey and be part of the revolution from Day One.
The Binding of NFTs and FLC Prices
At the core of this relaunch is establishing robust liquidity pairs between μTokens like μBAYC and $FLC. This creates a price binding causing $FLC valuations to trend directionally with the aggregated pool of top-tier NFT collections on our platform.
$FLC’s value is now closely tied to NFT market trends. As liquidity for μTokens increases, trades involving FLC creates a pathway linking it to changes in NFT valuations. This responsiveness helps $FLC serve as a secure proxy for exposure to blue chip NFTs, allowing institutions and large investors to participate through intuitive crypto building blocks.
Rather than directly handling NFTs with novel risks, major capital allocators can incorporate Flooring Protocol’s index-like $FLC into traditional crypto portfolio strategies with reliably correlated return profiles $FLC simplifies and derisks NFT investing for pools of institutional capital, ushering a new era of convergence between alternative assets and blockchain finance.
The Migration to Enhanced Liquidity
Our migration process is designed to optimize the liquidity of µTokens. Post-migration, the best swapping route on Uniswap will likely be ETH -> FLC -> µBAYC, enhancing the overall efficiency of the market.
Expanding Beyond Floor Pairs
While the relaunch spotlights µToken/$FLC floor price pairs, we recognize many leading NFT brands now have wider token ecosystems and co-dependent valuations with related crypto assets.
To make $FLC sensitivity to blue-chip NFTs more robust, Floor Protocol will enable diversified pairs bridging uTokens and their collections’ native ecosystem assets:
- μBAYC/$APE
- μDeGods/$DUST
- And many more…
This builds redundancy against fluctuations in any one pair while multiplying channels for capturing valuation movements in tandem with NFT collections.
To make $FLC’s market indexing capabilities more adaptable, we will support varied liquidity pairs bridging uTokens and related ecosystem assets connected to blue chip NFT brands, such as μBAYC/$APE.
This construct builds valuation tied to elite collections while retaining a simple core arbitrage mechanism through floor price uTokens.
Democratizing Governance Through $FLC
FLC holders are not just investors; they are active participants in the governance of our protocol. Through $FLC, you have the power to shape the future of liquidity mining rewards and, by extension, the entire NFT market.
Be a part of the governance and have your say [Coming Soon]
The Broader Impact on the NFT Ecosystem
$FLC aims to be a reflection of the NFT market. As the NFT market moves, so does $FLC, and vice versa. Our support of well-known ETH collections ensures that FLC price movements are synchronized with only the best projects’ pulse.
Closing Thoughts
As FLC becomes a vehicle to speculate on the NFT market, the entire ecosystem stands to benefit. We’re making NFTs more accessible, more tradeable, and more integral to the world of finance.
Don’t miss out on the future of NFT trading. Get involved today.
