NFTX D1 v2

IDEAS ONLY. STILL CHANGING BASED ON FEEDBACK.

Features:

Time-locked redeem-only mode

INO (Initial NFT Offering) functionality

Content creators can put an entire series of NFTs into a vault and then distribute the ERC20s however they choose (merkle drops, uniswap listing, token sale contract) and start a time period where the ERC20 holders can burn 1 ERC20 token to redeem 1 random NFT from the vault. After the time-locked redeem-only mode has finished, users can begin depositing and redeeming NFTs as normal.

Fee Parameters

The DAO can set a withdrawal and deposit fee parameter for all NFTX D1 vaults, as well as a targeted withdrawal fee (to redeem a specific item from the vault). The fee is assessed in vault ERC20 tokens.

A deposit fee of 1% means that NFT depositors will receive 0.99 ERC20 tokens per NFT deposited

A withdrawal fee of 1% (can be set higher or lower for each vault, 0% is default) means that NFT depositors must spend 1.01 ERC20 tokens per NFT redeemed (we expect the generic withdrawal fee to be set to zero in the majority of cases).

A target withdrawal fee of 10% means that NFT depositors must spend 1.10 ERC20 tokens to redeem a specific NFT.

These fees are minted for deposits and collected from users for withdrawals.

Fee Breakdown

NFT Issuers or Bootstrappers

For issuers (or Bootstrappers adding 100 NFTs or 5% of supply) that use the NFTX protocol for their initial distribution, they will be able to choose which address to receive 40% of fees.

DAO Treasury

For issuer launched vaults, the DAO will receive 20% of fees.

Liquidity Providers

Liquidity Providers that have staked NFTX/D1 LP tokens in a DAO-specified staking contract will be eligible to claim the remaining 40% of fees.

Allocating fees to NFTX/D1 LP tokenholders simultaneously:

  • incentivizes deep liquidity for D1 funds
  • Aligns interests of D1 holders and NFTX holders
  • Removes ETH as a capital constraint for treasury-supplied liquidity

In conjunction with a deep NFTX/ETH pool, this allows deep multi-hop liquidity and additional utility for NFTX holders.