Milady Vault is one of the Ethereum-based NFT vaults of NFTX.
What is NFTX?
NFTX is a platform for creating liquid markets for illiquid NFTs.
Users deposit their NFT into an NFTX vault and mint a fungible ERC-20 token (vToken) that represents a claim on a random asset from within the vault. vTokens can also be used to redeem a specific NFT from a vault.
Vaults can be created by anyone for any NFT asset on Ethereum. Once a vault has been created, any user can then deposit eligible NFTs into the vault to mint a fungible NFT-backed token referred to as an "vToken".
Users can then pool their minted vTokens in Automated Market Makers (AMMs) like Sushiswap to create a liquid market for other users to trade. With liquidity and trading volume established, the NFT-backed vToken enters into price discovery and a "floor price" is discovered.
The floor price denotes the lowest price for a particular NFT. Users establish a floor price by minting and selling vTokens in markets where they consider their NFT to be overvalued.