NFT Index Token
Last updated
Last updated
Floor Protocol rebuilt $FLC as an Index Token reflecting major price movements in the NFT sector - simplifying exposure for all investor profiles seeking participation.
Getting optimal exposure to high-potential NFTs historically demanded extensive research, technical know-how and risky speculation on unvetted ventures.
Owning $FLC allows charting the ever changing NFT sector through a straightforward yet credible format, similar to how ETFs, by design, only contain proven and successful companies.
Similar to how the Market Capitalization of top companies in the stock market influences the trend of US indexes such as S&P500, the Total Value Locked (TVL) of NFT pools also affect the performance of $FLC.
The higher the Volume & TVL that a collection has, the more it affects the price of $FLC. For example, at the current moment, $FLC index would be affected most by large collections such as BAYC, Pudgy Penguins, and Azuki's price movements, while smaller collections have proportionately smaller impact.
Rewards to Strengthen Smart Routing Pathways
Floor Protocol offers sizable liquidity mining rewards for trading pairs bridging $FLC to both ETH and fractional tokens of elite NFTs. For example:
µBAYC/$FLC
$FLC/ETH
This spotlighted incentive focus enhances trading efficiency by concentrating liquidity strategically to construct common routing pathways via $FLC.
As a result, when investors spend ETH to purchase µTokens, order flows follow low friction pathways like:
ETH → $FLC → µBAYC
Rather than directly swapping ETH for µTokens, transactions get guided through algorithmic incentives to route via intermediate $FLC pairs - automatically embedding price impact.
The value of $FLC is locked into μTokens when there is buy pressure of NFTs. It is only reversed when μTokens are sold off.
