A Detailed Guide for using the MAD CAT MILITIA 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 MCM then it means that you own 50% of a Floor MAD CAT MILITIA (the cheapest MAD CAT MILITIA ).
What is an NFT20 Pool and what can you do with them?
The NFT20 Pool contains MAD CAT MILITIA that other users have deposited and you can perform different actions on it using MCM . MCM is an ERC20 token created specifically for the MAD CAT MILITIA NFT20 Pool and it can be traded on Uniswap.
Use cases for the NFT20 pool and MCM:
- You can deposit a MAD CAT MILITIA into the pool for 95 MCM tokens.
- You can use 100 MCM tokens to swap out any MAD CAT MILITIA in the pool.
- You can swap a MAD CAT MILITIA with any other MAD CAT MILITIA in the pool.
- You can buy directly using ETH from the pool.
- You can exchange your ETH for MCM on Uniswap.
- You can exchange your MCM tokens for ETH on Uniswap when there is enough liquidity.
- You can provide Liquidity for MCM-ETH Pair and earn rewards in $MUSE.
Note: All MAD CAT MILITIA are treated equally in the pool so you should only deposit MAD CAT MILITIA that you think are common (i.e Floor MAD CAT MILITIA)
We will go over each of the above use cases in more detail below.
1. Swapping a MAD CAT MILITIA with another MAD CAT MILITIA in the pool
- Select the “Swap NFT to NFT” toggle above.
- In “FROM”, select a MAD CAT MILITIA from your wallet
- In “TO”, select that cute MAD CAT MILITIA from the pool that you like better
Note: Unlike using MCM , you can swap a MAD CAT MILITIA in your wallet for another MAD CAT MILITIA in the pool without the 5% fee and only pay a gas fee.
2. Depositing a MAD CAT MILITIA into the pool
You can deposit a MAD CAT MILITIA into the pool and in return, you will get 95 MCM tokens. The remaining 5 act as a 5% fee and get distributed to $MUSE token holders.
3. Buying a MAD CAT MILITIA from the pool using 100 MCM
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 MCM for a MAD CAT MILITIA !
4. Buying a MAD CAT MILITIA directly from the pool
There’s also a new feature where you can also directly buy a MAD CAT MILITIA from the pool using ETH without dealing with MCM . 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 MCM on Uniswap
Since MCM is an ERC20 token, you can directly get it from Uniswap.
6. Exchanging MCM to ETH
Similarly, you can exchange MCM for ETH on Uniswap. The great part about this is that you do not need to look for a buyer (compared to OpenSea).
There will need to be enough liquidity in MCM in order to perform this operation.
7. Provide Liquidity for MCM-ETH Pair
You can provide Liquidity to the MCM /ETH pair .
Add liquidity to the Uniswap MCM/ETH Pair. You will need to provide MCM and ETH in order to do it.
How does the Floor Price and the token price of MCM change?
The Floor Price of MAD CAT MILITIA on NFT20 and the token price of MCM fluctuates with the buy and sell transactions.
If more people buy MCM tokens, then the MCM token price and the Floor Price (100 MCM ) of a MAD CAT MILITIA on the NFT20 pool go up. If more people liquidate their MCM tokens for ETH, the price goes down.