# Peaking Ducks Wrapping

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As a proof-of-concept for our NFT Wrapping ecosystem, we have taken the Peaking Duck NFTs, the native NFTs for Peak Finance, as the first series of NFTs to have collateral locked.&#x20;

Please refer to the [Peak Finance and Prometheus Whitepaper V1](https://peakfinance.io/whitepaper/) for more information on the Peak Finance Dapp.&#x20;

The first iteration of wrapping is focused on securing collateral and rewarding users that take a long-term stake in the protocol.&#x20;

By presenting users with collateral tiers and time-lock thresholds, they apply multiplier traits to the wrapped NFT that will play a role in Summit Staking (covered in the next section).

Peaking Ducks have two additional layers of incentives that reward holders.&#x20;

The first layer is that 90% of the initial funds raised from the Peaking Ducks mint will be actively traded to pursue opportunities in the market. Through the Peaking Duck treasury trading strategy that relies on $BTC as a leading indicator, profits realized over time will buy back the $PEAK token to drive the peg up. The taxation schedule currently active on $PEAK ensures that those who wish to realize those profits in another denomination will pay an exit tax that subsequently raises the price floor for the $PEAK token.&#x20;

The second layer comes from secondary market royalties applied to the Peaking Ducks NFT. When sold on the secondary market, the royalties are as follows:

* 4% buyback $USDC to grow treasury.
* 2% buyback $PEAK.
* 2% buyback $METIS.
* 2% treasury management fee.

$PEAK and $METIS buybacks through royalties will be reserved for liquidity purposes to expand the availability of the $PEAK token.

When wrapping Peaking Ducks, there are no upfront fees. But to ensure the longevity of liquidity and reward those that maintain the collateral state of their wNFT, a 5% unwrap fee will be applied. With sufficient secondary market activity and prior unwrap fees applied, there is a likelihood (not a guarantee) that the user will redeem more tokens pro-rata even after fees are applied.&#x20;

The unwrap fees and secondary market royalty allocations are as follows:

Wrapped NFT Secondary Market Royalties

10% Royalties from marketplace currency is used to buy back $PEAK and $METIS to supply liquidity

* 2.5% to Peak DAO Treasury
* 7.5% to Wrapping Contract

User unwraps NFT

The user cannot unwrap NFT until the time lock has expired. 5% tax on LP tokens when the user Unwraps NFT:

* 2.5% to Peak DAO Treasury
* 2.5% to Wrapping Contract

Peak DAO Treasury’s accumulation of Peak and Pro LP tokens is to expand sources of available liquidity to other DEXs in the Andromeda ecosystem and beyond.&#x20;

Ultimately, Wrapped Peaking Ducks are multi-dimensional in the pursuit of intuitive opportunities to reward holders and compound with user’s investment, trading, and unwrapping activities. With a limit of 5000 NFTs, they will become increasingly valuable as the Andromeda network continues to grow into the future.

