Floor Protocol

Floor Protocol is an NFT liquidity platform that fractionalizes blue-chip NFTs into fungible μTokens, enabling trading on Uniswap V3 pools instead of traditional marketplaces. Its core mechanism allows users to deposit NFTs and receive μTokens, which can be traded or burned to redeem the underlying NFT.

The market pain point it addresses is the inefficiency of traditional NFT liquidation, which incurs approximately 1.5% in slippage and royalties. By contrast, Floor Protocol's Uniswap V3-based approach reduces trading overhead to below 0.4% when pools hold μTokens equivalent to 300 NFTs, offering superior capital efficiency through concentrated liquidity.

Its competitive edge lies in the $FLC index token, which tracks major blue-chip NFT collections, providing diversified exposure without requiring individual NFT research. The platform also aims to list μTokens on centralized exchanges to lower entry barriers for mainstream investors.

In the past six months (2026-03-12 to 2026-09-12), significant developments include: In September 2025, Floor Protocol announced a strategic pivot toward B2B NFT services and RWA solutions, with FPv2 ceasing operations on October 15, 2025. In June 2026, a vulnerability was exploited, allowing attackers to convert small amounts of wETH into nearly unlimited μToken balances and drain NFTs from affected pools. Yuga Labs conducted a white-hat rescue, recovering approximately $570,000 worth of NFTs (29 Bored Apes and 2 CryptoPunks) before malicious actors could exploit the same path. The platform had already ceased active operations, but residual pools remained exposed to smart contract risks.