A Detailed Guide for using the RECKLESS WHALE 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 WHALE20 then it means that you own 50% of a Floor RECKLESS WHALE(the cheapest RECKLESS WHALE).
What is an NFT20 Pool and what can you do with them?
The NFT20 Pool contains RECKLESS WHALES that other users have deposited and you can perform different actions on it using WHALE20 . WHALE20 is an ERC20 token created specifically for the RECKLESS WHALE NFT20 Pool and it can be traded on Uniswap.
Use cases for the NFT20 pool and WHALE20:
- You can deposit a RECKLESS WHALE into the pool for 95 WHALE20 tokens.
- You can use 100 WHALE20 tokens to swap out any RECKLESS WHALE in the pool.
- You can swap a RECKLESS WHALE with any other RECKLESS WHALE in the pool.
- You can buy directly using ETH from the pool.
- You can exchange your ETH for WHALE20 on Uniswap.
- You can exchange your WHALE20 tokens for ETH on Uniswap when there is enough liquidity.
Note: All RECKLESS WHALES are treated equally in the pool so you should only deposit RECKLESS WHALES that you think are common (i.e Floor RECKLESS WHALES)
We will go over each of the above use cases in more detail below.
1. Swapping a RECKLESS WHALE with another RECKLESS WHALE in the pool
- Select the “Swap NFT to NFT” toggle above.
- In “FROM”, select a RECKLESS WHALE from your wallet
- In “TO”, select that cute RECKLESS WHALE from the pool that you like better
Note: Unlike using WHALE20 , you can swap a RECKLESS WHALE in your wallet for another RECKLESS WHALE in the pool without the 5% fee and only pay a gas fee.
2. Depositing a RECKLESS WHALE into the pool
You can deposit a RECKLESS WHALE into the pool and in return, you will get 95 WHALE20 tokens. The remaining 5 act as a 5% fee and get distributed to $MUSE token holders.
3. Buying a RECKLESS WHALE from the pool using 100 WHALE20
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 WHALE20 for a RECKLESS WHALE !
4. Buying a RECKLESS WHALE directly from the pool
There’s also a new feature where you can also directly buy a RECKLESS WHALE from the pool using ETH without dealing with WHALE20 . 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 WHALE20 on Uniswap
Since WHALE20 is an ERC20 token, you can directly get it from Uniswap. You can also directly click on this link to access the WHALE20 Uniswap exchange page.
6. Exchanging WHALE20 to ETH
Similarly, you can exchange WHALE20 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 WHALE20 in order to perform this operation.
7. Provide Liquidity for WHALE20-ETH Pair
You can provide Liquidity to the WHALE20/ETH pair .
How does the Floor Price and the token price of
The Floor Price of RECKLESS WHALE on NFT20 and the token price of WHALE20 fluctuates with the buy and sell transactions.
If more people buy WHALE20 tokens, then the WHALE20 token price and the Floor Price (100 WHALE20 ) of a RECKLESS WHALE on the NFT20 pool go up. If more people liquidate their WHALE20 tokens for ETH, the price goes down.