Prologue NFT Launch: A Review from the High Council
Welcome all who seek the Spice! It has been nearly two weeks since our Prologue NFT Launch and it’s time for a review by the High Council.
The Prologue Playoffs were a glorious ceremony, but they were only made possible through a successful launch.
That launch began on the afternoon of Jan. 30th, when the Spice dApp was unveiled.
Individuals on our whitelist such as SPICE Team Six members and Spice Merchants then connected their wallets and prepared their $WETH for minting.
The mint occurred in three stages:
- Priority WL Mint
- Standard WL Mint
- Public Mint
This staggered approach allowed Prologue NFTs to get into the hands of the community members who wanted them. All remaining NFTs were minted quickly after that.
Spice is profoundly appreciative of everyone who minted one of the 555 Prologue NFTs and contributed $WETH to the Prologue Vault.
If you want to learn more about the Prologue Vault, click here.
Next came the fun part.. The Prologue Playoffs
The Prologue Playoffs
If you’re reading about Spice Finance for the first time, you might be thinking, “What are the Prologue Playoffs?”
The Prologue Playoffs was a competitive 7-day event wherein all Prologue minters had the opportunity to climb the PFP rarity ladder by depositing more $WETH into a Prologue Position than other players.
Think of it as a game of King of the Hill with 555 players.
The larger your final score compared to your fellow players, the higher the chance you had of being assigned a RARE Prologue PFP.
In the first 24 hours of the Prologue Playoffs: OVER 220 $WETH WAS DEPOSITED
After one week, the Prologue Playoffs concluded and all vault depositors received PFP metadata within their NFT receipt tokens.
Stats from the end of the Prologue Playoffs:
- 400 unique holders
- ~400 $WETH TVL Bootstrapped
- 10% average APY for the week - rewards distributed in $WETH
Here’s a gallery of some of the great moments of the Prologue Playoffs:
Let’s now delve deeper into the Prologue Vault we mentioned in the last section.
The Prologue Vault
**Note — You must hold at least one Prologue NFT to access deposits or withdrawals for the Prologue Vault.
Have you been wondering how the amount of tokens you deposit into the Prologue Vault changes over time?
It’s simple: The Vault will route your $WETH deposits to NFT-backed loans on underlying NFT lending marketplaces.
After a borrower or loan pool accepts the loan, they repay the loan in $WETH, increasing the amount of withdrawable $WETH for Prologue NFT holders — this amount is expressed as a historical yield.
Benefits for Prologue Holders
Prologue NFT Holders get a few unique benefits:
- EARLY ACCESS to the Spice protocol
- GATED ENTRY to Spice’s NFT x DeFi gigabrain community
- PREFERENCE & PRIORITY for all future launches
However, something else huge is coming to Prologue Holders very soon.
Prologue Leverage is in the works anon.
Did someone say looping? Yes, we certainly did.
Just like regular deposits / withdrawals, only prologue holders will be able to take out leverage against the “floor price” of their Prologue NFT.
A user deposits 10 $WETH and mints a rare Prologue NFT.
The user’s effective floor price of their Prologue NFT is ~10 $WETH, meaning there is a 10 $WETH deposit linked to that NFT.
Users will then gain access to the Leverage page on Spice’s dApp!
On the Leverage page, the Spice Protocol allows users to take out leverage at ~60% LTV against their Prologue NFT (subject to change).
- Leverage will come from a separate Prologue Leverage Vault on the Spice dApp wherein deposited tokens will be routed to service Prologue holder’s requests for leverage. More details to come.
- Prologue Loans must stay on the Spice platform.
Keeping with the example, the original user can take out 6 $WETH worth of leverage (60% LTV). Spice will then automatically loop that $WETH back into their Prologue Position.
The Prologue position is now 16 $WETH, augmenting yield and bolstering the floor price of the NFT.
Note: Augmented yield is only positive if the Prologue Vault yield is greater than the borrowing costs from the Prologue Leverage Vault. More details soon.
Users have the ability to do this again and again.. (but only while maintaining a 60% LTV limit).
Loop 2: Loan 2 = (16 WETH * 60%) — 6 WETH = 3.6 WETH
Loop 3: Loan 3 = (19.6W ETH * 60%) — 9.6 WETH = 2.16 WETH
so on and so forth..
Prologue holders who take out Prologue Leverage can be liquidated if the total loans taken out is greater than the ETH in Prologue Position multiplied by the liquidation LTV.
What’s Next For Spice?
Spicooors have mined their Spice in the Prologue Vault, traveled through the Portal and landed in the expansive desert. It is time to prepare for expedition through the dunes. But, to where?
With the initial bootstrapping of the Spice Protocol complete, the next phase is to release the Flagship Vault. This will bring the excellent native $ETH yield that Prologue Vault depositors already enjoy, to the public.
After that, we plan to become the largest, most liquid, and most efficient lender in the NFT Finance ecosystem.
He who controls the Spice, controls the Metaverse.