Public Good: Swapping and Dynamic Reserve

Proposal: Create an NFTX vault to establish dynamic reserve price on-chain, enabling Lil Noun swapping capabilities (without selling), and improving DAO operational security.

  • Note: This proposal is not requesting to remove ETH from DAO control; ETH and Nouns used will be managed via multi-sig. This provision is a capability enabling activity. The team working on this proposal has not included payment for efforts made.


  • Dynamic reserve price:
    • Dynamic reserve price is established via arbitrage. NFTX vault creates an arbitrage opportunity between Opensea, NFTX vault and winning auction bids. Arbitrageurs will bid the auction price up to profit from NFTX’s buy-now functionality.
  • Swapping:
    • With NFTX you can swap your Lil Noun for another Lil Noun directly. No buying and selling on the floor, instantly swap your Lil Noun for any other Lil Noun in the vault.
  • Verifiable:
    • All data on vault activity and yield is on chain and is automatically generated upon vault creation in Dune analytics.
  • Office hours from the Lil Noun’s Vault Liquidity team:
    • Vault Liquidity team will conduct office hours via Discord to offer assistance using and understanding the vault.
  • Improved DAO Security - Miner/Maximum Extractable Value (MEV):
    • Deep liquidity on-chain potentially provides opportunities for attackers to purchase tokens and vote on DAO proposals impacting DAO operations.
    • Aforementioned attacks are mitigated by the NFTX pricing curve, slippage, Quorum(enough liquidity to reach quorum is not required to operate vault), and lil Nounders Veto.
    • Initalization of the vault improves DAO security. NFTX is permissionless, motivated attackers can exploit this attack vector with or without DAO liquidity. If the DAO is not involved via this proposal or related proposals, our lack of involvement will not remove the attack vector, rather makes the DAO less prepared, and less secure in the event of an attack by motivated entities or colluding whales.

Treasury Request:

A total of 51 ETH to be used as follows:

  • 25 ETH to purchase lil Nouns.
  • 25 ETH to pair the lil Nouns vault tokens with ETH creating ETH lil Noun liquidity token.
  • 1 ETH for gas fees, whatever is left remaining in the multisig

We’ll purchase the tokens by bidding on Lil Nouns at a price close to the floor on secondary market.


  • Create a multisig to manage the liquidity tokens
  • Buy Lil Nouns for a total of 25 ETH
  • Create an NFT vault, deposit Lil Nouns into it
  • Deposit the fungible tokens plus 25ETH on a Sushi LP position
  • Stake LP token in NFTX



Really interesting, the swap function with the vault is very brightness, love it !


From a legal perspective, I don’t see any red-flag legal issues relating to this proposal. However, I’m not familiar with all the features and tokenomics associated with NFTX.