Nova x DeFi Girls
We’re delighted to announce that DeFi Girls will become part of the Nova DAO Ecosystem, with a strategic partnership that entrusts Studio Nova with LP management, reward distribution, and smart contract development on behalf of DeFi Girls.
What is DeFi Girls?
DeFi Girls is an NFT-Based DAO, created by a mix of contributors from various community projects across the DeFi space in September 2022. However, following a heavily targeted free mint, their OpenSea collection opened to both extreme sell pressure, and botted sellers; with sales looking to scalp as low as 1c extra with their overall minting gas fees. This led to DeFi Girls’ floor price almost immediately falling as low as 0.001 Eth.
A small and concentrated group of DeFi Girls members remained working on the project; and through self-funding and trading (almost every trade is documented on their Discord’s #markets-and-alfa channel!), the DeFi Girls DAO managed to clear out the heavily botted price floor via buybacks (spending tens of thousands of dollars in the process), and additionally built a treasury with a current valuation of just over $100,000!
Rewarding patience
DeFi Girls’ primary motive now is in rewarding the userbase that stuck through a tumultuous year — and didn’t take the exit for pennies.
Studio Nova will be entrusted with setting up and managing LP and Yield positions for DeFi Girl’s treasury, with a primary goal to maximize yield returns (even at the cost of minor IL), with a strategy focused towards blue-chip token pairs (ETH/WBTC, ETH/USDC etc), and long-established AMMs for generating real yield.
These yield rewards will be claimable by anyone with a DeFi Girls NFT — with each individual NFT entitling a user to their proportional share of the yield returns!
So, with 6765 DeFi Girls NFTs out there, that means each NFT will earn 1/6765th of the yield generated; and can be claimed by their respective holders.
What does Nova DAO Get?
As payment for Studio Nova handling the development and LP management side of the deal, 600 DeFi Girl NFTs will be contributed to the Nova DAO Multisig. A further 700 DeFi Girl NFTs will also be delivered to the Studio Nova wallet.
Note that these NFTs may not be sold by Nova DAO or Studio Nova for a minimum of 12 months, and any sales following that point must be limited to 2 NFT sales per day, unless otherwise agreed upon in writing by the DeFi Girls team.
This means that just under 10% of all yield earnings from DeFi Girls LP positions will go directly to the Nova DAO Treasury, while an additional 10% will go towards funding Studio Nova.
The DeFi Girls team has pledged that their share of yield will be used to compound any LP positions, as will 50% of any royalties received for the DeFi Girls NFT Collection.
In addition, Studio Nova has offered to re-deploy the DeFi Girls NFT Contract if required, in order to enforce on-chain royalty fees. As the gas cost for airdropping respective holders their NFTs would be considerable, this is currently on-hold for further discussions in the future.
Along with this solution, Studio Nova has also offered to develop DeFi Girls’ yield rewards snapshot system with the ability to exclude holders who opted against paying royalties on their purchase.
When does this all start??
Management of DeFi Girls’ LP Positions and development on their respective smart contracts will begin on October 1st.
Yield rewards will be distributed monthly, and will be based upon a multitude of snapshots taken across each month. The first set rewards will be made available on November 1st.
Given the overall low volume nature of the market at the moment, we intend on working with the DeFi Girls community in order to ensure that we’re deploying on a chain that makes sense in terms of gas fees against potential rewards — 1/6765th of one month’s yield may be too small to consider claiming against the gas costs of Ethereum!
We have recommended either Arbitrum, or Polygon’s PoS or zkEVM stack for low-cost reward claims.
If you’re arriving new from the DeFi Girls community, we’d welcome you to join the Nova DAO Telegram, over at https://t.me/nova! Similarly, if you’re a Nova DAO community member, you can find the DeFi Girls over on their Discord at https://discord.com/invite/TeJfkwKt5s!
Here’s looking forward to adding value and rewards to both of these awesome communities, battling on through the bear!
X / Twitter; 0xNovaDAO
Telegram: Nova
Discord: https://discord.gg/NovaDAO
Home: https://novadao.io
