A Detailed Guide for using the CRYPTO HODLERS 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 CRHDL20 then it means that you own 50% of a Floor CRYPTO HODLER (the cheapest CRYPTO HODLER).
What is an NFT20 Pool and what can you do with them?
The NFT20 Pool contains CRYPTO HODLERS that other users have deposited and you can perform different actions on it using CRHDL20. CRHDL20 is an ERC20 token created specifically for the CRYPTO HODLERS NFT20 Pool and it can be traded on Uniswap.
Use cases for the NFT20 pool and CRHDL20:
- You can deposit a CRYPTO HODLER into the pool for 95 CRHDL20 tokens.
- You can use 100 CRHDL20 tokens to swap out any CRYPTO HODLER in the pool.
- You can swap a CRYPTO HODLER with any other CRYPTO HODLER in the pool.
- You can buy directly using ETH from the pool.
- You can exchange your ETH for CRHDL20 on Uniswap.
- You can exchange your CRHDL20 tokens for ETH on Uniswap when there is enough liquidity.
Note: All CRYPTO HODLERS are treated equally in the pool so you should only deposit CRYPTO HOLDERS that you think are common (i.e Floor CRYPTO HOLDERS)
We will go over each of the above use cases in more detail below.
1. Swapping a CRYPTO HODLER with another CRYPTO HODLER in the pool
- Select the “Swap NFT to NFT” toggle above.
- In “FROM”, select a CRYPTO HODLER from your wallet
- In “TO”, select that cute CRYPTO HODLER from the pool that you like better
Note: Unlike using CRHDL20 , you can swap a CRYPTO HOLDER in your wallet for another CRYPTO HODLER in the pool without the 5% fee and only pay a gas fee.
2. Depositing a CRYPTO HODLER into the pool
You can deposit a CRYPTO HODLER into the pool and in return, you will get 95 CRHDL20 tokens. The remaining 5 act as a 5% fee and get distributed to $MUSE token holders.
3. Buying a CRYPTO HODLER from the pool using 100 CRHDL20
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 CRHDL20 for a CRYPTO HODLER!
4. Buying a CRYPTO HODLER directly from the pool
There’s also a new feature where you can also directly buy a CRYPTO HODLER from the pool using ETH without dealing with CRHDL20. 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 CRHDL20 on Uniswap
Since CRHDL20 is an ERC20 token, you can directly get it from Uniswap. You can also directly click on this link to access the CRHDL20 Uniswap exchange page.
6. Exchanging CRHDL20 to ETH
Similarly, you can exchange CRHDL20 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 CRHDL20 in order to perform this operation.
7. Provide Liquidity for CRHDL20-ETH Pair
You can provide Liquidity to the CRHDL20/ETH pair .
How does the Floor Price and the token price of CRHDL20 change?
The Floor Price of CRYPTO HODLERS on NFT20 and the token price of CRHDL20 fluctuates with the buy and sell transactions.
If more people buy CRHDL20 tokens, then the CRHDL20 token price and the Floor Price (100 CRHDL20) of a CRYPTO HODLERS on the NFT20 pool go up. If more people liquidate their CRHDL20tokens for ETH, the price goes down.