Floor price
The floor price is ANA’s mathematically provable minimum value, denominated in its reserve asset. The AVM provides a bid large enough to buy back 100% of the supply at the floor price. It’s effectively an infinite on-chain buy wall. As a matter of mathematical certainty, the floor price can never fall, only rise.How the floor rises
The floor price rises through two primary mechanisms: protocol fees and recalibration. All floor raises are permanent.Raising the floor price with protocol fees
A portion of fees will be invested directly into raising its own floor price, increasing the floor steadily with every transaction. In practice, fees build up inside a smart contract, and are added to the floor reserve once there is sufficient capital to raise the floor by 0.0001%. Raises will occur up to once every five minutes.Raising the floor price with recalibration
The Assured Value Machine (AVM) recalibrates the price curve while preserving the total area beneath it (the area equals the reserve liquidity). This reallocates liquidity from above the floor, into the floor region, raising the floor price higher. The AVM performs a floor raise recalibration automatically once two conditions are satisfied:- Trigger Price: ANA’s price must reach the trigger price, a threshold that indicates there’s sufficient liquidity above the floor to support a raise while preserving the curve’s slopes.
- Cooldown timer: The floor will not rise if it has risen in the previous five minutes. Each raise resets the five-minute cooldown timer.
Liquidity Buffer
The liquidity buffer is a parameter that preserves a portion of liquidity above the floor beyond what is strictly necessary. In practice, the liquidity buffer increases the trigger price. Its purpose is to allow the market to maintain additional sell depth at elevated price levels. This parameter can be fine-tuned through on-chain governance for each market individually. Nirvana addresses these systemic flaws with one core idea: a floor beneath every token. The floor represents a verifiable, on-chain minimum value, supported entirely by protocol-owned reserves. It is designed fundamentally to only ratchet upward through activity and fee accrual. The floor can never go below the minimum value assured by the protocol. It is transparent and unbreakable, which means participants can exit at any time with certainty, without relying on volatile secondary markets or predatory buyers. The floor provides downside protection, unlocks liquidation-free credit, and aligns incentives across the protocol. The age of speculation helped define new avenues of value, but failed to protect it long-term. Nirvana aims to change the status quo by assuring certainty in value. This is made possible by the AVM, the mechanism that governs price, reserves, and redemption floors.Floor raises
When the floor price rises, the horizontal “floor region” moves higher. To keep the total area unchanged, the AVM shifts area from the positively sloped parts of the curve to the floor region. Importantly, it does this without changing the slopes (price-impact coefficients) of those rising segments. Concretely, the slopes stay fixed while only the intercepts are adjusted. Net effect: same slopes as before, a permanently higher provable minimum price, and no creation or destruction of value, just a reallocation of area that preserves solvency. The slope of the price curve is a governable parameter. When governance votes to change it ( ±10%), the change only applies to the highest-supply segment of the curve:- If the market is currently below that top segment, nothing changes yet; the new slope takes effect only once buys push price/supply into that segment.
- If the market is already in the top segment when the change is enacted, the AVM creates a breakpoint at the current price/supply. To the left of that point (lower supplies), the old slope remains, honoring all the depth of liquidity for all past purchases. To the right (higher supplies), the new slope applies going forward.