A Detailed Guide for using the DYSTOPUNKS V2 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 DYSTO20 then it means that you own 50% of a Floor DYSTOPUNK V2 (the cheapest DYSTOPUNK V2).
What is an NFT20 Pool and what can you do with them?
The NFT20 Pool contains DYSTOPUNKS V2 that other users have deposited and you can perform different actions on it using DYSTO20 . DYSTO20 is an ERC20 token created specifically for the DYSTOPUNKS V2 NFT20 Pool and it can be traded on Uniswap.
Use cases for the NFT20 pool and DYSTO20:
- You can deposit a DYSTOPUNK V2 into the pool for 95 DYSTO20 tokens.
- You can use 100 DYSTO20 tokens to swap out any DYSTOPUNK V2 in the pool.
- You can swap a DYSTOPUNK V2 with any other DYSTOPUNK V2 in the pool.
- You can buy directly using ETH from the pool.
- You can exchange your ETH for DYSTO20 on Uniswap.
- You can exchange your DYSTO20 tokens for ETH on Uniswap when there is enough liquidity.
Note: All DYSTOPUNKS V2 are treated equally in the pool so you should only deposit DYSTOPUNKS V2 that you think are common (i.e Floor DYSTOPUNKS V2)
We will go over each of the above use cases in more detail below.
1. Swapping a DYSTOPUNK V2 with another DYSTOPUNK V2 in the pool
- Select the “Swap NFT to NFT” toggle above.
- In “FROM”, select a DYSTOPUNK V2 from your wallet
- In “TO”, select that cute DYSTOPUNK V2 from the pool that you like better
Note: Unlike using DYSTO20 , you can swap a DYSTOPUNK V2 in your wallet for another DYSTOPUNK V2 in the pool without the 5% fee and only pay a gas fee.
2. Depositing a DYSTOPUNK V2 into the pool
You can deposit a DYSTOPUNK V2 into the pool and in return, you will get 95 DYSTO20 tokens. The remaining 5 act as a 5% fee and get distributed to $MUSE token holders.
3. Buying a DYSTOPUNK V2 from the pool using 100 DYSTO20
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 DYSTO20 for a DYSTOPUNK V2!
4. Buying a DYSTOPUNK V2 directly from the pool
There’s also a new feature where you can also directly buy a DYSTOPUNK V2 from the pool using ETH without dealing with DYSTO20 . 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 DYSTO20 on Uniswap
Since DYSTO20 is an ERC20 token, you can directly get it from Uniswap. You can also directly click on this link to access the DYSTO20 Uniswap exchange page.
6. Exchanging DYSTO20 to ETH
Similarly, you can exchange DYSTO20 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 DYSTO20 in order to perform this operation.
7. Provide Liquidity for DYSTO20-ETH Pair
You can provide Liquidity to the DYSTO20/ETH pair .
How does the Floor Price and the token price of
The Floor Price of DYSTOPUNK V2 on NFT20 and the token price of DYSTO20 fluctuates with the buy and sell transactions.
If more people buy DYSTO20 tokens, then the DYSTO20 token price and the Floor Price (100 DYSTO20 ) of a DYSTOPUNK V2 on the NFT20 pool go up. If more people liquidate their DYSTO20 tokens for ETH, the price goes down.