Floor Engine
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This document provides a detailed overview of the Floor Engine, a specialized component of the Noderr Protocol's Autonomous Trading System (ATS).
Function & Purpose
The Floor Engine is designed to support a price floor for the native $NODR token. It executes automated buy-backs and liquidity provision strategies when the token price approaches a governed threshold. This mechanism is intended to reduce excessive downside volatility, but it does not guarantee a price floor: its firepower is bounded by available treasury and buyback capacity and is capped by the Base-Rate Governor (which limits buyback and reward distributions to a share of trailing net revenue).
Mechanism of Action
The Floor Engine continuously monitors the price of the $NODR token across multiple exchanges. If the price falls below the governed floor threshold (a parameter set and adjusted through protocol governance, see below), the Floor Engine will automatically:
- Execute Buy-Backs: Use the protocol's dedicated Token Buybacks revenue line (15% of protocol revenue) to buy NODR on the open market, creating buy pressure and supporting the price. This bucket is distinct from the Treasury Reserve (35%).
- Provide Liquidity: Add liquidity to a $NODR trading pair (e.g., NODR/ETH) on a decentralized exchange on Base L2, which can help to absorb selling pressure. The specific pairing is determined by liquidity provisioning design.
Governance & Control
The parameters of the Floor Engine, such as the governed floor threshold and the amount of capital allocated to buy-backs, are controlled through Noderr's two-chamber governance: strategy and treasury/capital deployment decisions run through the Oracle Chamber (with a 66% Oracle supermajority required for treasury and strategy changes), while the Guardian Chamber provides security oversight. Standard governance proposals require a 60% approval threshold, a 10% quorum, and at least 70% TrustFingerprint to propose, with voting power weighted by node tier (Micro 1x / Validator 2x / Guardian 4x / Oracle 7x). This allows the community to adjust the Floor Engine's behavior in response to changing market conditions.
Maintained By: Noderr Protocol Team