How to use the Guppy Gang NFT20 Pool

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 GUPPY20 then it means that you own 50% of a floor Guppy Gang (cheapest Guppy Gang).

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

The NFT20 Pool contains Guppy Gang NFTs that other users have deposited, and you can perform different actions on it using GUPPY20. GUPPY20 is an ERC20 token created specifically for the Guppy Gang NFT20 Pool and it can be traded on Uniswap.

Use cases for the NFT20 pool and GUPPY20:

1. You can deposit a Guppy Gang into the pool for 95 GUPPY20 tokens.
2. You can use 100 GUPPY20 tokens to swap out any Guppy Gang in the pool.
3. You can swap a Guppy Gang with any other Guppy Gang in the pool.
4. You can buy directly using ETH from the pool (When there is enough liquidity).
5. You can exchange your ETH for GUPPY20 on Uniswap(When there is enough liquidity).
6. You can exchange your GUPPY20 tokens for ETH on Uniswap (When there is enough liquidity).
7. You can provide Liquidity for the GUPPY20-ETH Pair and earn trading fees.

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

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

1. Swapping a Guppy Gang with another Guppy Gang in the pool

NFT to NFT swap

Select the “Swap NFT to NFT” toggle above.

1. In “FROM”, select a Guppy Gang from your wallet.
2. In “TO”, select the Guppy Gang from the pool that you want.
3. 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 GUPPY20, you can swap a Guppy Gang in your wallet for another Guppy Gang in the pool without the 5% fee and only pay the gas fee for the swap transaction.

2. Depositing Guppy Gang into the Pool for GUPPY20

Depositing Guppy Gang (NFT) for GUPPY20 (ERC-20)

You can deposit a Guppy Gang into the pool and in return, you will get 95 GUPPY20 tokens. The remaining 5 tokens act as a 5% fee which is distributed to $MUSE stakers.

3. Buying a Guppy Gang from the Pool using 100 GUPPY20

Using GUPPY20 to redeem a Guppy Gang 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 GUPPY20 for any Guppy Gang of your choice!

4. Buying/selling a Guppy Gang directly from the pool

Guppy Gangs in the Pool

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

There’s also a feature where you can directly buy a Guppy Gang in the Pool using ETH without dealing with GUPPY20. The NFT20 platform will do all the Uniswap operations for you in a single transaction. There’s a 5% fee but it might be more cost-efficient since you can save on gas fees.

Users can also sell right into this pool by clicking the toggle from “Buy From Pool” to “Sell From Wallet”.

5. Exchanging ETH for GUPPY20 on Uniswap

Buying GUPPY20 on Uniswap

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

Since GUPPY20 is an ERC20 token, you can directly get it from Uniswap. You can also directly click on this link to access the GUPPY20 Uniswap exchange page.

6. Exchanging GUPPY20 to ETH

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

You can exchange GUPPY20 for ETH on Uniswap. The great part about this is that you do not need to look for a buyer (compared to OpenSea).

7. Provide Liquidity for GUPPY20-ETH Pair

You can provide Liquidity to the GUPPY20/ETH pair and earn trading fees.

Adding liquidity on Uniswap

To add liquidity on the Uniswap GUPPY20/ETH pair you will need to provide GUPPY20 and ETH.

How does the Floor Price and the token price of GUPPY20 change?

The floor price of Guppy Gang in the Pool on NFT20 and the token price of GUPPY20 fluctuate with the buy and sell transactions.

If more people buy GUPPY20 tokens, then the GUPPY20 token price and the floor price (100 GUPPY20) of a Guppy Gang in the Pool NFT in the pool go up. Similarly, if more people liquidate their GUPPY20 tokens for ETH, the price goes down.

Links:
NFT20 pool
Uniswap
Twitter
Discord