The GYB Nifty ONEz
This is big. Scratch that. This is huge. A Fractionalized Art Portfolio that you can own the upside of while earning fees.
For the first time ever, 20 of the top crypto artists have had their Art work bundled together and offered to the public in a simple package. One token to represent a fraction of all 20 works of Art. WOW ! The 20 magnificent works of Art will be fractionalised into 100,000 pieces known as shards. These shards will be ERC20 tokens meaning they are easily tradable between buyers and sellers.
The GYB team decided to create this package to allow both fans and investors to be able to have exposure to a variety of great Artists without having to spend countless hours deciding which Art pieces to buy, run the risk of poor choices and be limited by budget constraints. With GYB’s ONEz you can easily acquire exposure to the top Artists in the space, through the purchase of one token, and have real time liquidity for future trades of ONEz.
Before we go any further, it’s important for the sanity of our marketing team that we ensure you pronounce ONEz correctly. Pronounced won — zs. Swiftly moving on…
To view the full gallery of all 20 art pieces click the following link: https://opensea.io/accounts/0x091e9b25e8a295fdf5c6cfb76cc442b692d2d1ff
How do I purchase ONEz?
GYB has partnered with NIFTEX, the leading NFT fractionalising platform, to fractionalise the entire portfolio of the 20 top Artist’s pieces into 100,000 shards. They have now been transformed from 20 x 1 NFTs to 100,000 ERC20 tokens. Easily tradable and affordable for all. You can visit https://www.niftex.com/fullExchange/ONEZ to view the real time price, charts and manage your trades.
On the right hand side, underneath the “Markets” box you will see the “Trade” box. This is where you can purchase and sell your ONEz tokens. When you enter test amounts to see the price you will get, pay attention to the ‘estimated price’ line and ‘slippage’ when you attempt to buy or sell ONEz. Sometimes it’s more economical to buy / sell in smaller quantities if you are noticing large slippage. This can be a result of liquidity as well as the way the AMM works (Uniswap’s Automated Market Maker is running this ETH — ONEz pool under the hood).
Earn Extra $$ — Advanced mode only!
If you want to earn extra money you can also provide liquidity to the ETH-ONEz pool which will entitle you to a pro rata portion of all the trading fees. Every time a buy or a sell transaction is made, 0.3% of the total value is taken as a fee and placed back in the pool, which the liquidity providers (LP’s) have a pro rata claim over. Anyone can add liquidity and earn from this.
In order to provide liquidity you must use the Uniswap interface, https://app.uniswap.org/#/swap, select “pool” from the top left navigation bar, select “add liquidity” from the centre of the screen. Now you need to use the dashboard to enter the exact same value of both tokens. For example, if you have $500 worth of ONEz, you also need to have available $500 worth of ETH. If you type into either box how many of a specific token you wish to supply, Uniswap will automatically populate the other field to show you how many of the other token is needed. Once you are ready, simply press supply, confirm with your web3 wallet of choice (we highly recommend metamask) and then you are finished. You are now an LP of the ONEz — ETH pool.
There are some risks you need to be aware of. Due to the nature of Uniswap’s AMM, there is such a thing as “impermanent loss”. This is the difference between holding the tokens in your wallet compared to providing liquidity. Impermanent loss occurs when there is a divergence from the price at which supply was provided (volatility). If the price returns to original supply price, and the tokens are withdrawn at that moment, then the LP will receive exactly the same number of tokens when supplied + trading fees. If the liquidity is withdrawn at any other time, the tokens withdrawn will be in different ratios in line with new market prices. For example, if ONEz increases in value by 500%, it is logical that when you withdraw your tokens you will receive less units of ONEz tokens compared to ETH. The reason being is that ONEz has gone up in value, and therefore you need less ONEz tokens to have the right ratio of ONEz — ETH.
It’s important to note that by providing liquidity you run the risk of under performing a simple buy and hold ONEz strategy. On the flip side, if there is a lot of interest and activity, then you stand to gain on the trading fees.
Whether to become an LP or not is a personal decision based on your investment strategy.
Math — How does the Uniswap AMM work?
What makes trading with Uniswap’s AMM unique is that you are not trading against other users, but trading against a smart contract. A mathematical formula then decides how many tokens from the other side of the pair the trader should receive, in this case, ONEz in exchange for ETH. Or vice versa.
K = X * Y is the formula Uniswap’s AMM uses. K is a predefined constant, X & Y are the tokens of either side. This equation defines a hyperbola: a smooth geometric shape that approaches both infinity and zero at its extremes but never quite reaches them.
About GrowYourBase (GYB) Our mission is to make NFTs easily accessible to All. GYB is the best place to earn, learn about and build an NFT portfolio. Previous knowledge, experience and digital wallets are not necessary.
GYB continues to pioneer the NFT space with our GYB Creators Residency Program, the GYB Nifty Society Membership Program and the GYB NFTz CryptoArt Bundles.
This article is for general informational purposes only and is not intended to provide specific advice or recommendations for any individual or on any specific investment product. It is only intended to provide NFT education.