How to Use the GOONS 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 GOONS20 then it means that you own 50% of a Floor GOONS ( cheapest GOONS).

What is an NFT20 Pool and what can you do with it?

The NFT20 Pool contains GOONS that other users have deposited, and you can perform different actions on it using GOONS20. GOONS20 is an ERC20 token created specifically for the GOONS NFT20 Pool and it can be traded on Uniswap.

Use cases for the NFT20 pool and GOONS20:

1. You can deposit a GOONS into the pool for 95 GOONS20 tokens.
2. You can use 100 GOONS20 tokens to swap out any GOONS in the pool.
3. You can swap a GOONS with any other GOONS in the pool.
4. You can buy directly using ETH from the pool.
5. You can exchange your ETH for GOONS20 on Uniswap.
6. You can exchange your GOONS20 tokens for ETH on Uniswap when there is enough liquidity.
7. You can provide Liquidity for the GOONS20-ETH Pair.

Note: All GOONS are treated equally in the pool so you should only deposit GOONS that you think are common (i.e. Floor GOONS).

We will go over each of the above use cases in more detail below.

1. Swapping a GOONS with another GOONS in the pool

NFT to NFT swap

1. Select the “Swap NFT to NFT” toggle above.
2. In “FROM”, select a GOONS from your wallet.
3. In “TO”, select that cute GOONS from the pool that you prefer.
4. Click on “APPROVE” which is a one-time transaction giving the DEX the authority to execute your transactions, and finally click on “SWAP” to complete the process.

Note: Unlike using GOONS20, you can swap a GOONS in your wallet for another GOONS in the pool without the 5% fee and only pay the gas fee for the swap transaction.

2. Depositing a GOONS into the Pool

Depositing your NFT for ERC20 derivatives

You can deposit a GOONS into the pool and in return, you will get 95 GOONS20 tokens. The remaining 5 tokens act as a 5% fee which is distributed to $MUSE token holders.

3. Buying a GOONS from the Pool using 100 GOONS20

Using ERC20 derivatives to redeem the underlying NFT

If you toggle 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 GOONS20 for any GOONS of your choice!

4. Buying a GOONS directly from the pool

Buying an NFT directly from the Pool

There’s also a new feature where you can also directly buy a GOONS from the pool using ETH without dealing with GOONS20. The NFT20 platform will do all the Uniswap operations for you in a single 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 GOONS20 on Uniswap

Buying GOONS20 on Uniswap

NOTE: This feature is available after the Uniswap pool creation by the community.

Since GOONS20 is an ERC20 token, you can directly get it from Uniswap. You can also directly click on this link to access the GOONS20 Uniswap exchange page.

6. Exchanging GOONS20 to ETH

NOTE: This feature is available after the Uniswap pool creation by the community.

Similarly, you can exchange GOONS20 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 for the GOONS20-ETH pair in order to perform this operation.

7. Provide Liquidity for GOONS20-ETH Pair

You can provide Liquidity to the GOONS20/ETH pair.

Adding liquidity on Uniswap

Add liquidity to the Uniswap GOONS20/ETH pair. You will need to provide GOONS20 and ETH in order to do it.

How does the Floor Price and the token price of GOONS20 change?

The Floor Price of GOONS20 on NFT20 and the token price of GOONS20 fluctuate with the buy and sell transactions.

If more people buy GOONS2O tokens, then the GOONS20 token price and the Floor Price (100 GOONS20) of a GOONS on the NFT20 pool go up. Similarly, if more people liquidate their GOONS20 tokens for ETH, the price goes down.