[Phase-1] CIP-30 Creating a NFTX Vault

CIP: 30
title: Creating a NFTX Vault
author: Benbilmem
status: Phase-1
created: 2022-01-03


Hereby I am proposing to create a NFTX (https://nftx.io/) vault for CityDAO citizenship NFTs. My arguments are,

  1. OpenSea floor price is not really a floor price but the lowest price someone is willing to sell for. NFTX is the real floor price for an NFT, because you can immediately sell without the need of a buyer.

  2. Unlike Opensea, NFTX is a decentralized exchange and it has a DAO. It is better aligned with what CityDAO wants to achieve.

  3. Right now around 1K NFTs are stored in the treasury. NFTX is distributing commissions to the liquidity providers. So our treasury and the holders can have a passive income from SushiSwap pool.

  4. Only disadvantage, NFTX contract is complex so it is consuming more gas than Opensea. For higher floor prices like 3-4 ETH this should not be a big issue.

Any comments and critics will be appreciated


This could be a concern if ETH price explodes, but ETH 2 might resolve this.

I like the suggestion of having some portion of the treasury in various index funds, and an NFT index fund could be an interesting hedge against volatile crypto price swings.

I think we need to be cautious of the idea that anything that is a DAO is aligned with what CityDAO wants to achieve. As recently as mid-December 2021, NFTX has a Sharpe ratio of below 0.5 according to Messari, which is not a positive indicator of market-beating performance. With the recent launch of OpenDAO and LooksRare as potential competitors to Opensea, it might be worth it to wait a while and see how market share is distributed. Opensea has itself hinted at a public listing, similar to Coinbase. The Grayscale Trust might also be creating an NFT fund, which might provide less volatile hedging. Iā€™m definitely on board with NFTs as collateralized assets though!