Flor Garden’s Endgame

Flor Garden will launch in two distinct phases: the bootstrapping period and then the launch on Baseline.

Phase one focuses on accumulating treasury assets and expanding the total supply of FLOR. Phase two will establish a baseline value (BLV) for FLOR by launching the POL onto Baseline. Once on Baseline, treasury assets will continue to generate revenue.

Phase 1 Launch - Bootstrapping and supply increase

In this initial phase, Flor Garden aims to thicken Protocol-Owned Liquidity (POL) via bond sales. This period is characterized by utilizing FLOR emissions as a strategic tool to grow treasury assets.

Bootstrapping

To bootstrap its treasury in Phase 1, Flor Garden will employ Bonds leveraging the following assets:

• YES (a portion of which will be automatically converted into FLOR/YES LP tokens through our NFP contract. For more details, refer to the Bonding section.)

• WETH

• USDB

The demand for each bond type will influence variable pricing, facilitated by the credit facility, enabling users to purchase bonds at a price lower than FLOR's market rate.

For a detailed premier of how this bonding mechanism works, please see the primer from OlympusDAO that pioneered bonding for Protocol Owned Liquidity.

FLOR Emissions

Throughout this phase, the FLOR supply will expand from two primary sources: rebasing and bonding. FLOR is minted both upon bond purchases and through the rebase rewards distributor. Increasing FLOR supply and emissions is exclusive to this phase.

Phase 2 - Baseline Launch

There is not a specific target date or timeline. Instead it will be decided through governance when it is determined that the treasury is large enough to move to Baseline. SOON™

Ending FLOR Emissions

FLOR emissions will end prior to launching on Baseline, this ensures a desired token supply, which is instrumental for the Baseline BLV. This includes the end of all bond sales and rebasing for stakers.

Launching on Baseline

When launching on Baseline, FLOR will be assigned a Baseline Value (BLV), establishing a minimum price floor for the token. Following the initial bootstrapping phase, the treasury will continue to grow through its native yielding assets and yield farming strategies. This will enhance the value of both the treasury and protocol-owned liquidity, contributing to Baseline and consequently increasing the baseline value of FLOR.

The significance of FLOR having a BLV

To see a clear example of this, YES launched with a BLV, which has gradually increased over time. This establishes a firm price level at which the liquidity pool can be bought back using LP, should the market price drop to the BLV level in the liquidity position.

The above image shows how Baseline Protocol works by launching a concentrated liquidity position. The solid green line shows the floor price, AKA baseline value (BLV) of YES. This provides an example of how phase 2 launches and the subsequent BLV that will be created for FLOR.