Mechanics
A Floor Index has 0 tokens to start and mints 1,000 tokens for every deposited asset. Deposited assets are fractionalized prior to deposit, therefore only a full kilo-asset will mint 1,000 index tokens. Users can also deposit a portion of their dragon, receiving a proportional share of index tokens.
Index tokens may also be acquired by purchasing shares for SOL on the open market. Index tokens may be swapped for any individual asset fractions backing the index. This is the only way to acquire the underlying shares of the specific asset.
All assets are fractionalized via the Bridgesplit protocol, meaning the assets support buyout, fusing, and more (see fractionalization docs for more info). Someone who owns a kilo-asset can burn the 1,000 shares to claim the full NFT to their wallet. Additionally, fractionalized assets may be put up for auction at the vote of at least 50% of shares. In the event of a buyout, shares may be redeemed for their pro-rata share of winning bid in SOL. Therefore, index tokens may be swapped for shares of a bought-out asset that still remains in the index and then redeemed for SOL on the asset’s page.
Consider depositing fractions of an NFT the equivalent of selling them. Anyone may buy out the fractions of your asset from the index after deposit.

Example Scenario

Consider the following scenario using Boryoku Dragonz as an example collection for a Floor Index. Alice deposits Boryoku Dragon #18 to the Boryoku Dragon Floor Index, receiving 1,000 DRAG. Bob deposits 49% of Boryoku Dragon #42 to the index, receiving 490 DRAG and 510 shares of Boryoku Dragon #42. Four more users deposit their kilo-dragons to the index (#1, #2, #3, #4). The Floor Index now has 5,490 outstanding DRAG. The assets backing the index are:
  1. 1.
    1,000 shares of Boryoku Dragon #18
  2. 2.
    490 shares of Boryoku Dragon #42
  3. 3.
    1,000 shares of Boryoku Dragon #1
  4. 4.
    1,000 shares of Boryoku Dragon #2
  5. 5.
    1,000 shares of Boryoku Dragon #3
  6. 6.
    1,000 shares of Boryoku Dragon #4
Alice decides she wants to earn rewards on her DRAG and provides liquidity to the DRAG-SOL trading pool. She puts all of her DRAG in the pool along with some SOL. Other depositors hold onto their DRAG. Mary wants to own DRAG and buys 500 DRAG from the pool with SOL.
As a 51% holder of Boryoku Dragon #42, Bob decides he wants to sell the asset so he enables a 24 hour auction on the dragon. The winning bid is for 1000 SOL. Bob is now able to claim 510 SOL from the vault.
Mary notices that there are stale shares of now bought-out #42 in the Floor Index. She trades 490 of her DRAG for 490 shares of #42 from the index. This DRAG is burned. Mary then redeems 490 SOL for these 490 shares from the #420 vault.
There are now 5,000 outstanding shares of DRAG:
  1. 1.
    1,000 shares of Boryoku Dragon #18
  2. 2.
    1,000 shares of Boryoku Dragon #1
  3. 3.
    1,000 shares of Boryoku Dragon #2
  4. 4.
    1,000 shares of Boryoku Dragon #3
  5. 5.
    1,000 shares of Boryoku Dragon #4
Bob no longer has a dragon but has 510 SOL and 490 DRAG. Alice now has 500 DRAG (and more SOL from Mary’s trade) sitting in the liquidity pool. Mary has 490 SOL and 10 DRAG. The other depositors still hold 1,000 DRAG each.
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