How Floor works
Every coin on Floor has its own vault, filled by its trades. Here is how it works, what it costs, and the risks.
The idea in three steps
- Launch on an asset. A creator picks what the coin stands on: HYPE, SOL, USDC, ZEC or a tokenized stock like NVDA.
- Every trade fills the floor. Part of each trading fee goes into that coin’s own vault, in the asset it stands on.
- Holders can cash out any time. Anyone holding the coin can burn some of it and take that share of the vault.
Fees
Limits written into the contracts: the vault’s share can never be set below 50% of fees, and the cash-out fee can never be set above 3%.
Sell or redeem?
Selling gets you the market price from other traders. Redeeming burns your coins and pays you only their share of the coin’s floor.
Early on, a floor is small next to the price, so selling usually pays far more than redeeming. Redeemed coins are gone for good, and the difference stays in the coin. The site warns you and asks you to confirm when selling would pay more.
Redeeming matters when the price falls close to or below the floor: holders can still get their share of the vault back, whatever the market does.
Graduation
Solana: coins start at about a $20,000 market cap on a Raydium LaunchLab curve. Around $150,000 they move to a Raydium pool and that liquidity is burned forever. Their trading fees keep filling the floor after that.
Hyperliquid: coins trade in their own market with liquidity locked from the first block. There is no graduation.
What coins stand on
HYPE, SOL, USDC and ZEC, plus 20 tokenized stocks and funds (xStocks) such as NVIDIA, Tesla, Apple and the S&P 500. On Hyperliquid, coins stand on HYPE.
Coins on Floor are memecoins. They are not shares in any company, give no claim on a company, and are not affiliated with or endorsed by the companies whose stocks they are paired with.
Risks
- No outside audit yet. Floor’s programs are new and have not been audited by an outside firm.
- Upgradeable contracts. Floor’s admin key can upgrade the contracts and change settings within the limits above. It is not yet a multisig.
- Memecoins can go to zero. You can lose everything you put in.
- A floor is not a guarantee. Early floors are tiny. A floor does not mean you get back what you paid.
- Tokenized stocks are issued by a third party (Backed, as xStocks), which can pause or claw them back. They are not available to US persons.
- Sniper bots trade new launches within seconds.
- Wallet warnings. Wallets may warn about a new site while it is being reviewed.