A Detailed Guide for using the BLAZED CATS NFT20 Pool
What is NFT20?
NFT20 is a permissionless p2p protocol to tokenize NFTs and make them tradable on decentralized exchanges such as UniSwap or Sushiswap.
Anyone with an NFT can create a new pool or add his NFT to an existing pool and get ERC20 Token derivatives of their NFTs in a permission-less way, those tokens can be transferred and traded on DEXes right away. You can also swap your NFT for any other NFT of the same pool, no need to tokenize.
NFT20 also allows you to own a fractional share of an NFT in the collection. For example, if you own 50 BLAZED20 then it means that you own 50% of a Floor BLAZED CAT (the cheapest BLAZED CAT).
What is an NFT20 Pool and what can you do with them?
The NFT20 Pool contains BLAZED CATS that other users have deposited and you can perform different actions on it using BLAZED20 . BLAZED20 is an ERC20 token created specifically for the BLAZED CATS NFT20 Pool and it can be traded on Uniswap.
Use cases for the NFT20 pool and BLAZED20:
- You can deposit a BLAZED CAT into the pool for 95 BLAZED20 tokens.
- You can use 100 BLAZED20 tokens to swap out any BLAZED CAT in the pool.
- You can swap a BLAZED CAT with any other BLAZED CAT in the pool.
- You can buy directly using ETH from the pool.
- You can exchange your ETH for BLAZED20 on Uniswap.
- You can exchange your BLAZED20 tokens for ETH on Uniswap when there is enough liquidity.
Note: All BLAZED CATS are treated equally in the pool so you should only deposit BLAZED CATS that you think are common (i.e Floor BLAZED CAT)
We will go over each of the above use cases in more detail below.
1. Swapping a BLAZED CAT with another BLAZED CAT in the pool
- Select the “Swap NFT to NFT” toggle above.
- In “FROM”, select a BLAZED CAT from your wallet
- In “TO”, select that cute BLAZED CAT from the pool that you like better
Note: Unlike using BLAZED20, you can swap a BLAZED CAT in your wallet for another BLAZED CAT in the pool without the 5% fee and only pay a gas fee.
2. Depositing a BLAZED CAT into the pool
You can deposit a BLAZED CAT into the pool and in return, you will get 95 BLAZED20 tokens. The remaining 5 act as a 5% fee and get distributed to $MUSE token holders.
3. Buying a BLAZED CAT from the pool using 100 BLAZED20
If you click on the arrows between the “FROM” and “TO” fields, it will let you change the direction of the swap (just like Uniswap). Now you can swap 100 BLAZED20 for a BLAZED CAT !
4. Buying a BLAZED CAT directly from the pool
There’s also a new feature where you can also directly buy a BLAZED CAT from the pool using ETH without dealing with BLAZED20. The NFT20 platform will do all the Uniswap operations for you in 1 transaction. There’s a 5% fee to it but it might be more cost-efficient since you can save on gas fees.
5. Exchanging ETH for BLAZED20 on Uniswap
Since BLAZED20 is an ERC20 token, you can directly get it from Uniswap. You can also directly click on this link to access the BLAZED20 Uniswap exchange page.
6. Exchanging BLAZED20 to ETH
Similarly, you can exchange BLAZED20 for ETH on Uniswap. The great part about this is that you do not need to look for a buyer (compared to OpenSea). Here’s the Uniswap link.
There will need to be enough liquidity in BLAZED20 in order to perform this operation.
7. Provide Liquidity for BLAZED20-ETH Pair
You can provide Liquidity to the BLAZED20/ETH pair .
How does the Floor Price and the token price of
The Floor Price of BLAZED CAT on NFT20 and the token price of BLAZED20 fluctuates with the buy and sell transactions.
If more people buy BLAZED20 tokens, then the BLAZED20 token price and the Floor Price (100 BLAZED20) of a BLAZED CAT on the NFT20 pool go up. If more people liquidate their BLAZED20 tokens for ETH, the price goes down.