How to Use the Lostboy 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 LOST20 then it means that you own 50% of a floor Lostboy (cheapest Lostboy).
What is an NFT20 Pool and what can you do with it?
The NFT20 Pool contains Lostboy NFTs that other users have deposited, and you can perform different actions on it using LOST20. LOST20 is an ERC20 token created specifically for the Lostboys NFT20 Pool and it can be traded on Uniswap.
Use cases for the NFT20 pool and LOST20:
- You can deposit a Lostboy into the pool for 95 LOST20 tokens.
- You can use 100 LOST20 tokens to swap out any Lostboy in the pool.
- You can swap a Lostboy with any other Lostboy in the pool.
- You can buy directly using ETH from the pool (When there is enough liquidity).
- You can exchange your ETH for LOST20 on Uniswap(When there is enough liquidity).
- You can exchange your LOST20 tokens for ETH on Uniswap (When there is enough liquidity).
- You can provide Liquidity for the LOST20-ETH Pair.
Note: All Lostboys are treated equally in the pool so you should only deposit Lostboy that you think are common (i.e. floor Lostboy).
We will go over each of the above use cases in more detail below.
1. Swapping a Lostboy with another Lostboy in the pool
- Select the “Swap NFT to NFT” toggle above.
- In “FROM”, select a Lostboy from your wallet.
- In “TO”, select the Lostboy from the pool that you want.
- 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 LOST20, you can swap a Lostboy in your wallet for another Lostboy in the pool without the 5% fee and only pay the gas fee for the swap transaction.
2. Depositing Lostboy into the Pool for LOST20
You can deposit a Lostboy into the pool and in return, you will get 95 LOST20 tokens. The remaining 5 tokens act as a 5% fee which is distributed to $MUSE stakers.
3. Buying a Lostboy from the Pool using 100 LOST20
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 LOST20 for any Lostboy of your choice!
4. Buying a Lostboy directly from the pool
There’s also a feature where you can directly buy a Lostboy from the pool using ETH without dealing with LOST20. 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.
5. Exchanging ETH for LOST20 on Uniswap
NOTE: This feature is available after the Uniswap pool creation by the community.
Since LOST20 is an ERC20 token, you can directly get it from Uniswap. You can also directly click on this link to access the LOST20 Uniswap exchange page.
6. Exchanging LOST20 to ETH
NOTE: This feature is available after the Uniswap pool creation by the community.
You can exchange LOST20 for ETH on Uniswap. The great part about this is that you do not need to look for a buyer (compared to OpenSea).
There will need to be enough liquidity for the LOST20-ETH pair in order to perform this operation.
7. Provide Liquidity for LOST20-ETH Pair
You can provide Liquidity to the LOST20/ETH pair and earn trading fees.
Add liquidity to the Uniswap LOST20/ETH pair. You will need to provide LOST20 and ETH in order to do it.
How does the Floor Price and the token price of LOST20 change?
The Floor Price of LOST20 on NFT20 and the token price of LOST20 fluctuate with the buy and sell transactions.
If more people buy LOST20 tokens, then the LOST20 token price and the floor price (100 LOST20) of a Lostboy NFT in the pool go up. Similarly, if more people liquidate their LOST20 tokens for ETH, the price goes down.
