A Detailed Guide for using the PIXELGLYPHS 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 PXG20 then it means that you own 50% of a Floor PIXELGLYPHS (the cheapest PIXELGLYPHS ).
What is an NFT20 Pool and what can you do with them?
The NFT20 Pool contains PIXELGLYPHS that other users have deposited and you can perform different actions on it using PXG20. PXG20 is an ERC20 token created specifically for the PIXELGLYPHS NFT20 Pool and it can be traded on Uniswap.
Use cases for the NFT20 pool and PXG20:
- You can deposit a PIXELGLYPHS into the pool for 95 PXG20 tokens.
- You can use 100 PXG20 tokens to swap out any PIXELGLYPHS in the pool.
- You can swap a PIXELGLYPHS with any other PIXELGLYPHS in the pool.
- You can buy directly using ETH from the pool.
- You can exchange your ETH for PXG20 on Uniswap.
- You can exchange your PXG20 tokens for ETH on Uniswap when there is enough liquidity.
Note: All PIXELGLYPHS are treated equally in the pool so you should only deposit PIXELGLYPHS that you think are common (i.e Floor PIXELGLYPHS)
We will go over each of the above use cases in more detail below.
1. Swapping a PIXELGLYPHS with another PIXELGLYPHS in the pool
- Select the “Swap NFT to NFT” toggle above.
- In “FROM”, select a PIXELGLYPHS from your wallet
- In “TO”, select that cute PIXELGLYPHS from the pool that you like better
Note: Unlike using PXG20 , you can swap a PIXELGLYPHS in your wallet for another PIXELGLYPHS in the pool without the 5% fee and only pay a gas fee.
2. Depositing a PIXELGLYPHS into the pool
You can deposit a PIXELGLYPHS into the pool and in return, you will get 95 PXG20 tokens. The remaining 5 act as a 5% fee and get distributed to $MUSE token holders.
3. Buying a PIXELGLYPHS from the pool using 100 PIXELGLYPHS
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 PXG20 for a PIXELGLYPHS!
4. Buying a PIXELGLYPHS directly from the pool
There’s also a new feature where you can also directly buy a PIXELGLYPHS from the pool using ETH without dealing with PXG20 . 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 PXG20 on Uniswap
Since PXG20 is an ERC20 token, you can directly get it from Uniswap. You can also directly click on this link to access the PXG20 Uniswap exchange page.
6. Exchanging PXG20 to ETH
Similarly, you can exchange PXG20 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 PXG20 in order to perform this operation.
7. Provide Liquidity for PXG20-ETH Pair
You can provide Liquidity to the PXG20/ETH pair .
How does the Floor Price and the token price of PXG20 change?
The Floor Price of PIXELGLYPHS on NFT20 and the token price of PXG20 fluctuates with the buy and sell transactions.
If more people buy PXG20 tokens, then the PXG20 token price and the Floor Price (100 PXG20) of a PIXELGLYPHS on the NFT20 pool go up. If more people liquidate their PXG20 tokens for ETH, the price goes down.