# NFTmuseum protocol NFTmuseums is a DeFi auction protocol based on NFTmuseums native $NM token. Players are rewarded with NM for placing on NFTmuseums. Liquidity providers receive income from their assets in exchange for providing liquidity. Stakers earn $NM for participating in platform governance. Our goal with the NFTmuseums protocol was to develop an interoperable DeFi architecture that could revolutionize museums. NFTmuseums solves this problem by eliminating the middleman, offering investors unprecedented access to a share of the inside profits. In the NFTmuseums ecosystem, you are home. The smart contract ecosystem includes the following: * **​House Pools** - A house pool contract allows liquidity provider deposits (USDC, BTC & ETH) to bankroll NFTmuseums and third-party dApps that integrate NFTmuseums. * **​TreasuryDAO** - The DAO wallet store offers cold storage for treasury funds and the distribution of profits to vNM holders. * **Rewards Contract** - Distributes $NM tokens to players & liquidity providers. * **LFI House Pool** - A contract that requires $NM to be staked to receive vNM in order to participate in voting on proposals for ecosystem. Users receive revenues from $NM museum + $NM tokens from the treasury contract in return for securing the protocol. The NFTmuseums ecosystem incorporates a Treasury, House Pools and community DAO. To align NFTmuseums's ecosystem development with community interests, **20%** of the $NM supply will be distributed as liquidity rewards to the community primarily to incentivise participation in betting, provision of liquidity, and governance. ### The House Pools House Pools use community-owned “liquidity pools” to museum NFTmuseums. They are permissionless, transparent, and offer NFTMUS rewards to incentivize liquidity providers to keep their tokens within the pool, so winning bets can be paid out. The more tokens provided as liquidity within the ecosystem, the lesser the risk, yield variance, and emissions. Yield will be supported by $NM token emissions for 36 months. When each bet is placed on NFTmuseums, a % of the expected profits are sent to the treasury contract. The treasury converts these net fees into $NM tokens for further distribution or allocation for burning as a deflationary mechanism. LPs who deposit USDC, BTC, or ETH into house pools provide liquidity for the smart contract. The House pool’s profit is based on a fixed margin. Crucially, when visitors make auctions, the liquidity in the museum's pools ensures that users receive instant payouts when the auction is completed. This risk requires a worst-case payout as the pooled funds are locked up, preventing liquidity providers from withdrawing their stake until all bids in the auction have been paid. The NFTmuseums protocol will prevent the house from accepting bets that cannot be paid. The protocol’s hard-coded rules ensure that the deeper the pool becomes, the bigger the stake can be made, and the greater the rewards to liquidity providers. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://nft-museum.gitbook.io/nft/protocol-nftmuseum/nftmuseum-protocol.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.