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Fund

TL;DR

Each collection strategy needs capital to acquire NFTs. The Fund phase capitalizes the Open Bid through two channels.

Prelaunch presales capitalize each collection strategy by raising LOOP deposits.
After launch, swap fees on LRT trades continuously fund NFT acquisition and distribute yield.

How It Works

Presale (LOOP) ──┬── 90% → Open Bid (initial capital)
                 └── 10% → LRT Pool Liquidity

LRT Trading ──→ 4% Swap Fee ──┬── 2% → Open Bid (ongoing)
                               ├── 1% → Stakers
                               └── 1% → Creator Royalties

Prelaunch

Each collection strategy launches with a presale that raises LOOP deposits.
10% of presale proceeds seed the initial LRT↔LOOP liquidity pool.
The remainder funds the Open Bid (the protocol's perpetual standing bid for NFTs).

Presalers receive credit positions, a Baseline primitive.
Credit positions are created at pool initialization when the LRT price equals its BLV (floor price), giving presalers leveraged upside from the floor. They earn 1% of that LRT's swap fees in perpetuity and can unwind to spot tokens at any time, subject to pool liquidity.

Post Launch

After launch, every LRT↔LOOP swap generates a 4% fee, split three ways:

  • 2% → Open Bid. Replenishes the standing bid that funds NFT purchases.
  • 1% → Stakers. Distributes to presalers holding credit positions and token stakers.
  • 1% → Creator royalties. Flows to the original NFT collection creators.

The 2% Open Bid allocation provides an ongoing funding stream.
As trading volume grows, the Open Bid accumulates faster, enabling more frequent NFT acquisitions.

More acquisitions generate more auctions, which drive more trading volume and more fees.

Example

$PUDGYRUN (the LRT for Pudgy Penguins) generates 1,000,000 $LOOP/day in swap volume. The 4% fee produces 40,000 LOOP/day:

  • 20,000 LOOP/day (2%) flows to the Open Bid
  • 10,000 LOOP/day (1%) distributes as presaler staking yield
  • 10,000 LOOP/day (1%) goes to Pudgy Penguins creator royalties

At this rate, the Open Bid accumulates 20,000 $LOOP daily toward the next NFT acquisition.