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Features

Non-Decreasing Risk-Free Value (RFV)​

The defining feature of FLOOR is a non-decreasing RFV or "floor price", which backs the amount of FLOOR.

In simple terms, this means there's always significant amounts of locked ETH that FLOOR can be swapped for. This is attractive because the downside risk is known at all times.

This deep liquidity of ETH is always available for FLOOR to be swapped for. In many ways, this is like Olympus DAO and in this sense, FLOOR is backed.

The difference however, is that the RFV never decreases.

The price for the RFV is calculated by amount_of_ETH / circulating_supply_of_FLOOR.

Tax on Transfer​

FLOOR incurs a 4.5% tax on each transfer, which includes buys or sells. The tax is deducted from the amount of FLOOR bought or sold and is then burned forever. This decreases the circulating supply which also helps the RFV to increase.

In addition to the burn, there is a switch to divert a portion of the taxed FLOOR to two other addresses:

  • Staking contract address
  • Dev team address

Token Generation​

LOTUS initially minted its entire supply and placed equal amounts of LOTUS in 5 bin increment (5% in price).

In a sense, placing liquidity like this is an initial DEX offering (IDO) and the first of it's kind for a concentrated liquidity AMM like liquidity book.

In order to buy tokens, users exchange ETH into the pool and receive LOTUS in return. Unlike most IDOs where there is only a single buy price, the buy price of LOTUS goes up every 5 bin increments or 5% in price (or thereabout depending on the transfer tax) for every fixed amount of LOTUS sold.

FLOOR works in a very similar way (albeit with different parameters), but the big difference is that it does not have to premint the entire supply prior.

Instead, FLOOR can choose to mint and allocate to higher priced bins whenever the admin chooses. This has the added benefit of not having too much overhead of FLOOR, which is usually a hindering factor for price discovery.