A Detailed Guide for using Wicked Craniums 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 CRANIUM20 then it means that you own 50% of a Floor Wicked Cranium ( cheapest Wicked Craniums).
What is an NFT20 Pool and what can you do with them?
The NFT20 Pool contains Wicked Craniums that other users have deposited and you can perform different actions on it using CRANIUM20 . CRANIUM20 is an ERC20 token created specifically for the Wicked Craniums NFT20 Pool and it can be traded on Uniswap.
Use cases for the NFT20 pool and CRANIUM20:
- You can deposit a Wicked Cranium into the pool for 95 CRANIUM20 tokens.
- You can use 100 CRANIUM20 tokens to swap out any Wicked Cranium in the pool.
- You can swap a Wicked Cranium with any other Wicked Craniums in the pool.
- You can buy directly using ETH from the pool.
- You can exchange your ETH for CRANIUM20 on Uniswap.
- You can exchange your CRANIUM20 tokens for ETH on Uniswap when there is enough liquidity.
- You can provide Liquidity for CRANIUM20-ETH Pair and earn rewards in $MUSE.
Note: All Wicked Craniums are treated equally in the pool so you should only deposit Wicked Craniums that you think are common (i.e Floor Wicked Craniums)
We will go over each of the above use cases in more detail below.
1. Swapping a Wicked Cranium with another Wicked Cranium in the pool
- Select the “Swap NFT to NFT” toggle above.
- In “FROM”, select a Wicked Cranium from your wallet
- In “TO”, select that cute Wicked Cranium from the pool that you like better
Note: Unlike using CRANIUM20 , you can swap a Wicked Cranium in your wallet for another Wicked Cranium in the pool without the 5% fee and only pay a gas fee.
2. Depositing a Wicked Cranium into the pool
You can deposit a Wicked Cranium into the pool and in return, you will get 95 CRANIUM20 tokens. The remaining 5 act as a 5% fee and get distributed to $MUSE token holders.
3. Buying a Wicked Cranium from the pool using 100 CRANIUM20
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 CRANIUM20 for a Wicked Cranium !
4. Buying a Wicked Cranium directly from the pool
There’s also a new feature where you can also directly buy a Wicked Cranium from the pool using ETH without dealing with CRANIUM20. The NFT20 platform will do all the Uniswap operations for you in 1 transaction. According to the NFT20 Team, 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 CRANIUM20 on Uniswap
Since CRANIUM20 is an ERC20 token, you can directly get it from Uniswap. You can also directly click on this link to access the CRANIUM20 Uniswap exchange page.
6. Exchanging CRANIUM20 to ETH
Similarly, you can exchange CRANIUM20 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 CRANIUM20 in order to perform this operation.
7. Provide Liquidity for CRANIUM20-ETH Pair
You can provide Liquidity to the CRANIUM20/ETH pair .
- Add liquidity to the Uniswap CRANIUM20/ETH pair. You will need to provide CRANIUM20 and ETH in order to do it.
How does the Floor Price and the token price of CRANIUM20 change?
The Floor Price of Wicked Craniums on NFT20 and the token price of CRANIUM20 fluctuates with the buy and sell transactions.
If more people buy CRANIUM20 tokens, then the CRANIUM20 token price and the Floor Price (100 CRANIUM20) of a Wicked Cranium on the NFT20 pool go up. If more people liquidate their CRANIUM20 tokens for ETH, the price goes down.