A brief summary of the experience for creators and participants of Fjord Drops.
Fjord Drops were designed to enable permissionless, fair, and exciting NFT collection drops. A Fjord Drop is a new NFT drop style built on top of the popular Balancer Liquidity Bootstrapping Pools (LBPs) price discovery mechanism for bootstrapping funds and enabling token distribution. This is our flagship product and the method empowers fair, community first, open and transparent NFT drops.
To create a Fjord Drop, artists/projects will need to set up an extension on their ERC721 contract before deploying, (unless the NFT contract is created via Manifold). Creators do not need to pre-mint a collection, the mint occurs as users swap into the pool. This extension enables the NFT contract to interact with the Fjord UI and LBP. Once the contract is configured the creator will configure the following variables: duration, quantity of NFTs included in the Fjord Drop, pool start weights, pool end weights, amount of collateral, and swap fee. Please see our detailed description for more understanding of how these variables may affect a Fjord Drop. Our team is also happy to work with creators to discuss best practices.
During Fjord Drops users are required to mint whole numbers of NFTs with each transaction. Participants can buy multiple NFTs with each transaction (max of ⅓ of the remaining supply) but price will increase significantly if a user tries to buy many NFTs early in a drop. Buying multiple NFTs has less price impact towards the end of the Fjord Drop. NFTs are NOT able to be sold back into the pool, however this is a use case we are excited to explore.
Fjord Drops is highly configurable and we are excited to experiment with new use cases. The flow described in this Abstract is only step one of our journey.