theNFT Simulations

Raw Text

Follow

Dec 1

Dec 1

·

·

Case study of theNFT revenue streams

TLDR — Game Theory, APR and Break-Even point per theNFT

The less theNFTs minted, the higher the yield captured by each theNFT.

The more theNFTs minted, the higher the daily volume being generated by THENA, and the longer it takes to reach break-even.

This article only focuses on the cash flows generated by theNFT. Capital gains can be captured at any time by selling theNFT on the secondary market (i.e. https://opensea.io/ ).

Introduction

THENA will have a fair launch with equal access to the token for all — with no seed round or token pre-sale. Instead, we are inviting web3 visionaries from the community to become founders with us through theNFT fundraise. Each of the minters join us to build a scalable liquidity layer for the entire BNB ecosystem.

THENA expects to raise $1,800,000, 60% of which will be dedicated to incentivize the liquidity provision on THENA as well as $THE locking rate, and 40% will be allocated to fund the core team runway and the R&D budget. In exchange of the capital raised, THENA guarantees theNFT stakers a constant portion of the trading fees generated on each swap: 20% during the first 3 months, 15% during the 3 next months, and 10% after that — forever .

The objective of this article is to provide an estimation of the expected yield generated by theNFT stakers. The motivation behind setting each parameter is discussed and different scenarios are explored based on hypothetical volumes generated and the total amount of theNFTs minted.

Main Inputs

3 case studies:

Case #1 : Low Minting (1000 theNFT minted)

Case #2 : Medium Minting (1500 theNFT minted)

Case #3 : Maximum Minting (3000 the NFT minted)

6 neutral scenarios:

$5,000,000 average daily volumes

$10,000,000 average daily volumes

$20,000,000 average daily volumes

$40,000,000 average daily volumes

$80,000,000 average daily volumes

$160,000,000 average daily volumes

Minting of theNFT Collection — THE Game Theory

By design, theNFT collection incentivizes the achievements of the maximum mints while being equally beneficial to THENA’s stakeholders, independent of the number of theNFTs minted.

Similar to THENA’s tokenomics, theNFT collection includes some game theory mechanics designed to reach the maximum mint scenario.

On the one hand, the total swap fees being distributed to theNFT minters is independent of the number of theNFT mints. In other words, the less theNFTs minted, the higher the portion of swap fees captured by theNFT stakers.

On the other hand, though the initial yield is decreasing with the number of mint, the more minted, the more funds will be raised to accelerate THENA’s success. First, 60% of the proceeds of theNFT sale will be utilised to incentivize $THE locking rate and the protocols participation in weekly bribes. These two parameters are the key to achieve the long term objective of deep liquidity and decentralised governance of THENA.

Additionally, 40% of the proceeds of theNFT sale will be dedicated to providing initial liquidity, runway, as well as accelerating internal R&D. The R&D program notable includes the implementation of two cutting edge technologies:

Boosted Pools : Those pools can deploy idle tokens into productive investments such as lending pools or vault strategies. All being equal, these pools are generating more “real-yield” than the basic UniV2 pools, and resulting in deeper liquidity, thus leading to lower slippage and higher volume on THENA.

MetaStable Pools : Those pools allows to keep an evolutive peg between two correlated assets, such as $BNB and a liquid staked version of $BNB that accrue $BNB staking rewards (eg $BNBx, $aBNBc and $stkBNB). This technology enables liquidity providing conditions and is currently not available on BNB Chain. The total daily volume being generated by $BNBx, $aBNBc and $stkBNB that can be captured thanks to this technology is estimated to be $490,000 and we expect a considerable growth in the coming months.

Therefore, theNFT minters can expect more daily volume on a longer time frame as a consequence of the maximum minting amount of theNFTs.

Parameters and Disclaimer

Daily Volumes

We chose to present a wide range of daily volumes scenarios in order to be as neutral as possible on the potential cash-flow generated by theNFTs. The daily volumes being generated on decentralised exchanges are highly volatile and one can estimate the revenue he can expect from theNFTs based on its own market sentiment.

Real Minting Price

theNFT minters that have been whitelisted on “THE list” are entitled to an airdrop in the form of $THE/veTHE tokens: 4.5M $THE of the initial supply will be allocated towards them in order to lower their real cost of acquisition. Given a conservative estimated market cap at launch of $7.5M, we expect the airdrop to cover 37.5% of the minting price. In token terms, you would receive at least 1,500. If you mint 10, your airdrop in will be 10 times larger.

Average Fee

Parameters are set according to a breakdown analysis of the average volume being routed through 1inch on BNB Chain. It appears that most of the volumes are being routed through uncorrelated assets. Therefore, we can expect volumes to be routed mainly through the vAMM (0.2% swap fee) as opposed to the sAMM (0.04% swap fee).

Royalties

Estimation based on the analysis of the volumes being currently generated on the main NFT marketplace supported on BNB Chain: Element NFT Marketplace. The analysis is based on a sample of the 20th biggest NFT collection that is currently valued at over $1,000,000. The collection with low daily volumes, as well as those with a low level of supply distribution, have been removed from the sample.

Disclaimer

These parameters and simulation models have been estimated based on highly volatile metrics. Additionally, the current state of the DeFi industry does not yet allow a selection of sufficiently large sample size to reach a reasonable significance level. Therefore, the models used should not be taken into account in any investment decisions.

Follow us on socials here .

Single Line Text

Follow. Dec 1. Dec 1. · · Case study of theNFT revenue streams. TLDR — Game Theory, APR and Break-Even point per theNFT. The less theNFTs minted, the higher the yield captured by each theNFT. The more theNFTs minted, the higher the daily volume being generated by THENA, and the longer it takes to reach break-even. This article only focuses on the cash flows generated by theNFT. Capital gains can be captured at any time by selling theNFT on the secondary market (i.e. https://opensea.io/ ). Introduction. THENA will have a fair launch with equal access to the token for all — with no seed round or token pre-sale. Instead, we are inviting web3 visionaries from the community to become founders with us through theNFT fundraise. Each of the minters join us to build a scalable liquidity layer for the entire BNB ecosystem. THENA expects to raise $1,800,000, 60% of which will be dedicated to incentivize the liquidity provision on THENA as well as $THE locking rate, and 40% will be allocated to fund the core team runway and the R&D budget. In exchange of the capital raised, THENA guarantees theNFT stakers a constant portion of the trading fees generated on each swap: 20% during the first 3 months, 15% during the 3 next months, and 10% after that — forever . The objective of this article is to provide an estimation of the expected yield generated by theNFT stakers. The motivation behind setting each parameter is discussed and different scenarios are explored based on hypothetical volumes generated and the total amount of theNFTs minted. Main Inputs. 3 case studies: Case #1 : Low Minting (1000 theNFT minted) Case #2 : Medium Minting (1500 theNFT minted) Case #3 : Maximum Minting (3000 the NFT minted) 6 neutral scenarios: $5,000,000 average daily volumes. $10,000,000 average daily volumes. $20,000,000 average daily volumes. $40,000,000 average daily volumes. $80,000,000 average daily volumes. $160,000,000 average daily volumes. Minting of theNFT Collection — THE Game Theory. By design, theNFT collection incentivizes the achievements of the maximum mints while being equally beneficial to THENA’s stakeholders, independent of the number of theNFTs minted. Similar to THENA’s tokenomics, theNFT collection includes some game theory mechanics designed to reach the maximum mint scenario. On the one hand, the total swap fees being distributed to theNFT minters is independent of the number of theNFT mints. In other words, the less theNFTs minted, the higher the portion of swap fees captured by theNFT stakers. On the other hand, though the initial yield is decreasing with the number of mint, the more minted, the more funds will be raised to accelerate THENA’s success. First, 60% of the proceeds of theNFT sale will be utilised to incentivize $THE locking rate and the protocols participation in weekly bribes. These two parameters are the key to achieve the long term objective of deep liquidity and decentralised governance of THENA. Additionally, 40% of the proceeds of theNFT sale will be dedicated to providing initial liquidity, runway, as well as accelerating internal R&D. The R&D program notable includes the implementation of two cutting edge technologies: Boosted Pools : Those pools can deploy idle tokens into productive investments such as lending pools or vault strategies. All being equal, these pools are generating more “real-yield” than the basic UniV2 pools, and resulting in deeper liquidity, thus leading to lower slippage and higher volume on THENA. MetaStable Pools : Those pools allows to keep an evolutive peg between two correlated assets, such as $BNB and a liquid staked version of $BNB that accrue $BNB staking rewards (eg $BNBx, $aBNBc and $stkBNB). This technology enables liquidity providing conditions and is currently not available on BNB Chain. The total daily volume being generated by $BNBx, $aBNBc and $stkBNB that can be captured thanks to this technology is estimated to be $490,000 and we expect a considerable growth in the coming months. Therefore, theNFT minters can expect more daily volume on a longer time frame as a consequence of the maximum minting amount of theNFTs. Parameters and Disclaimer. Daily Volumes. We chose to present a wide range of daily volumes scenarios in order to be as neutral as possible on the potential cash-flow generated by theNFTs. The daily volumes being generated on decentralised exchanges are highly volatile and one can estimate the revenue he can expect from theNFTs based on its own market sentiment. Real Minting Price. theNFT minters that have been whitelisted on “THE list” are entitled to an airdrop in the form of $THE/veTHE tokens: 4.5M $THE of the initial supply will be allocated towards them in order to lower their real cost of acquisition. Given a conservative estimated market cap at launch of $7.5M, we expect the airdrop to cover 37.5% of the minting price. In token terms, you would receive at least 1,500. If you mint 10, your airdrop in will be 10 times larger. Average Fee. Parameters are set according to a breakdown analysis of the average volume being routed through 1inch on BNB Chain. It appears that most of the volumes are being routed through uncorrelated assets. Therefore, we can expect volumes to be routed mainly through the vAMM (0.2% swap fee) as opposed to the sAMM (0.04% swap fee). Royalties. Estimation based on the analysis of the volumes being currently generated on the main NFT marketplace supported on BNB Chain: Element NFT Marketplace. The analysis is based on a sample of the 20th biggest NFT collection that is currently valued at over $1,000,000. The collection with low daily volumes, as well as those with a low level of supply distribution, have been removed from the sample. Disclaimer. These parameters and simulation models have been estimated based on highly volatile metrics. Additionally, the current state of the DeFi industry does not yet allow a selection of sufficiently large sample size to reach a reasonable significance level. Therefore, the models used should not be taken into account in any investment decisions. Follow us on socials here .