# NFT Index Token

## $FLC 2.0

**Floor Protocol** **rebuilt $FLC** as an **Index Token** reflecting major price movements in the NFT sector - **simplifying exposure for all investor profiles** seeking participation.

<figure><img src="https://4151815585-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fv5eIM8bG4ebEPYdTVefW%2Fuploads%2FpMd13Aky3RztuzRs08pM%2FFP%20Original.png?alt=media&#x26;token=ad482f04-83fe-43c3-b375-41880d4660ac" alt=""><figcaption><p>One token, infinite possibilities.</p></figcaption></figure>

### Upside Made Straightforward

Getting optimal exposure to high-potential NFTs historically demanded extensive research, technical know-how and risky speculation on unvetted ventures.&#x20;

### Clear Window Into a Diverse Market.

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.

## Curating pools of Blue-Chip Collections

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.

<figure><img src="https://4151815585-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fv5eIM8bG4ebEPYdTVefW%2Fuploads%2FqQNTrUvqLgnzmUliD4jh%2FGithub3.png?alt=media&#x26;token=f6879da4-10bb-412c-ba1a-9b16736f85ee" alt=""><figcaption><p>Current TVL Composition on FP</p></figcaption></figure>

_**The higher the Volume & TVL that a collection has, the more it affects the price of $FLC.**_ \
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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.

<figure><img src="https://4151815585-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fv5eIM8bG4ebEPYdTVefW%2Fuploads%2FktKBSOY4voEj7mtJ3NUG%2FGitHub%20uToken%20UPDATED.png?alt=media&#x26;token=bea26d3b-ca7e-4920-86b7-4f0e0624df71" alt=""><figcaption><p>How collection price trends may affect $FLC prices</p></figcaption></figure>

## How buying/selling µTokens affect $FLC

**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.

<figure><img src="https://4151815585-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fv5eIM8bG4ebEPYdTVefW%2Fuploads%2FPVEW4nCDwz55LfY8vgae%2FETH%20UTokens.png?alt=media&#x26;token=2c691ece-cb18-4e12-9200-0c0f58537dcf" alt=""><figcaption><p>When µTokens are bought, Value is injected into $FLC and then locked in µTokens.</p></figcaption></figure>

<figure><img src="https://4151815585-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fv5eIM8bG4ebEPYdTVefW%2Fuploads%2FRKF6bxoDggroLCqoaMaS%2FUtokens%20ETH.png?alt=media&#x26;token=8a92132d-dfeb-45cd-adf4-c43ba0298c98" alt=""><figcaption><p>When µTokens are sold, the intial buy pressure will be reversed.</p></figcaption></figure>

{% hint style="success" %}
The value of $FLC is locked into μTokens when there is buy pressure of NFTs. It is only reversed when μTokens are sold off.
{% endhint %}

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