[Update on 19 Dec: AzuraDAO has been rug! Ouch!]
This post will be more easily understood by those familiar with resale of NFTs in secondary markets, as well as those who are familiar with OHM forks stemming off from (3,3) concept introduced in OlympusDAO. I don't intend to deep dive into these two as there are plenty of Medium articles which explains it way clearer than me.
I'm going to express my view of the NFT staking concept introduced by AzuraDAO. This is not meant as a financial advice and you should always your due diligence before deciding to part your money / crypto to go into any investment. Ok, enough of disclaimer, here I go...
Intro to AzuraDAO and its NFT concept
The AzuraDAO (https://azuradao.medium.com) is an OHM fork on the Solana chain which has its own unique NFTs which can boost the staking returns. Basically NFT owners of the limited 2500 supply will have their APY staking gains boosted when you participate in this DeFi protocol. ++The first thought when I read about this was that given the financial utility of such NFTs, they ought to be highly valued in the secondary market . ++I hence went to get one myself on https://magiceden.io/marketplace/azura_dao.
On a high level, the NFTs have 3 different rarity rank and the appearance is identical within each rarity rank. The APY returns can be stacked (yes, another selling point which caught my attention). Quick breakdown:
Rarity Rank 1, quantity at 100, with ~50% APR boost of the total APR
Rarity Rank 2, quantity at 400, with ~15% APR boost of the total APR
Rarity Rank 3, quantity at 2000, with ~7% APR boost of the total APR
Current secondary market value
The secondary market for the the NFTs is increasing in value, considering that the mint was priced at 1.5 SOL and had ended a week ago (6 Dec 2021). As of this post (12 Dec 2021), floor price as below:
Rarity Rank 1 - 25 SOL Rarity Rank 2 - 4 SOL Rarity Rank 3 - 1.6 SOL
Now, do note that this OHM fork has yet been launched and the developers have expressed intent to enhance the value through gamification (no details yet). With this in mind, I am indeed bullish over the value of these NFTs in the secondary market.
Concluding remark
I will like to reiterate that the above are my simple-minded views and ain't financial advice. I welcome constructive insights on this if any. And thank you for bearing with me first post. Definitely appreciate upvotes and views on what I can contribute in the next post.