A Detailed Guide for using the GOATZ 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 GOATZ20 then it means that you own 50% of a Floor GOATZ (the cheapest GOATZ ).
What is an NFT20 Pool and what can you do with them?
The NFT20 Pool contains GOATZ that other users have deposited and you can perform different actions on it using GOATZ20 . GOATZ20 is an ERC20 token created specifically for the GOATZ NFT20 Pool and it can be traded on Uniswap.
Use cases for the NFT20 pool and GOATZ20:
- You can deposit a GOATZ into the pool for 95 GOATZ20 tokens.
- You can use 100 GOATZ20 tokens to swap out any GOATZ in the pool.
- You can swap a GOATZ with any other GOATZ in the pool.
- You can buy directly using ETH from the pool.
- You can exchange your ETH for GOATZ20 on Uniswap.
- You can exchange your GOATZ20 tokens for ETH on Uniswap when there is enough liquidity.
Note: All GOATZ are treated equally in the pool so you should only deposit GOATZ that you think are common (i.e Floor GOATZ )
We will go over each of the above use cases in more detail below.
1. Swapping a GOATZ with another GOATZ in the pool
- Select the “Swap NFT to NFT” toggle above.
- In “FROM”, select a GOATZ from your wallet
- In “TO”, select that cute GOATZ from the pool that you like better
Note: Unlike using GOATZ20 , you can swap a GOATZ in your wallet for another GOATZ in the pool without the 5% fee and only pay a gas fee.
2. Depositing a GOATZ into the pool
You can deposit a GOATZ into the pool and in return, you will get 95 GOATZ20 tokens. The remaining 5 act as a 5% fee and get distributed to $MUSE token holders.
3. Buying a GOATZ from the pool using 100 GOATZ20
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 GOATZ20 for a GOATZ !
4. Buying a GOATZ directly from the pool
There’s also a new feature where you can also directly buy a GOATZ from the pool using ETH without dealing with GOATZ20 . 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 GOATZ20 on Uniswap
Since GOATZ20 is an ERC20 token, you can directly get it from Uniswap. You can also directly click on this link to access the GOATZ20 Uniswap exchange page.
6. Exchanging GOATZ20 to ETH
Similarly, you can exchange GOATZ20 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 GOATZ20 in order to perform this operation.
7. Provide Liquidity for GOATZ20-ETH Pair .
You can provide Liquidity to the GOATZ20/ETH pair .
Add liquidity to the Uniswap GOATZ20/ETH pair. You will need to provide GOATZ20 and ETH in order to do it.
How does the Floor Price and the token price of GOATZ20 change?
The Floor Price of GOATZ on NFT20 and the token price of GOATZ20 fluctuates with the buy and sell transactions.
If more people buy GOATZ20 tokens, then the GOATZ20 token price and the Floor Price (100 GOATZ20) of a GOATZ on the NFT20 pool go up. If more people liquidate their GOATZ20 tokens for ETH, the price goes down.