How to Use the Pixel Foxes 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 PIXELFOXES20 then it means that you own 50% of a floor Pixel Foxes (cheapest Pixel Foxes).
What is an NFT20 Pool and what can you do with it?
The NFT20 Pool contains Pixel Foxes NFTs that other users have deposited, and you can perform different actions on it using PIXELFOXES20. PIXELFOXES20 is an ERC20 token created specifically for the Pixel Foxes NFT20 Pool and it can be traded on Uniswap.
Use cases for the NFT20 pool and PIXELFOXES20:
- You can deposit a Pixel Foxes into the pool for 95 PIXELFOXES20 tokens.
- You can use 100 PIXELFOXES20 tokens to swap out any Pixel Foxes in the pool.
- You can swap a Pixel Foxes with any other Pixel Foxes in the pool.
- You can buy directly using ETH from the pool (When there is enough liquidity).
- You can exchange your ETH for PIXELFOXES20 on Uniswap(When there is enough liquidity).
- You can exchange your PIXELFOXES20 tokens for ETH on Uniswap (When there is enough liquidity).
- You can provide Liquidity for the PIXELFOXES20-ETH Pair and earn trading fees.
Note: All Pixel Foxes are treated equally in the pool so you should only deposit Pixel Foxes that you think are common (i.e. floor Pixel Foxes).
We will go over each of the above use cases in more detail below.
1. Swapping a Pixel Foxes with another Pixel Foxes in the pool
Select the “Swap NFT to NFT” toggle above.
- In “FROM”, select a Pixel Foxes from your wallet.
- In “TO”, select the Pixel Foxes 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 PIXELFOXES20, you can swap a Pixel Foxes in your wallet for another Pixel Foxes in the pool without the 5% fee and only pay the gas fee for the swap transaction.
2. Depositing Pixel Foxes into the Pool for PIXELFOXES20
You can deposit a Pixel Foxes into the pool and in return, you will get 95 PIXELFOXES20 tokens. The remaining 5 tokens act as a 5% fee which is distributed to $MUSE stakers.
3. Buying a Pixel Foxes from the Pool using 100 PIXELFOXES20
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 PIXELFOXES20 for any Pixel Foxes of your choice!
4. Buying/selling a Pixel Foxes directly from 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 Pixel Foxes from the pool using ETH without dealing with PIXELFOXES20. 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 PIXELFOXES20 on Uniswap
NOTE: This feature is available after the Uniswap pool creation by the community.
Since PIXELFOXES20 is an ERC20 token, you can directly get it from Uniswap. You can also directly click on this link to access the PIXELFOXES20 Uniswap exchange page.
6. Exchanging PIXELFOXES20 to ETH
NOTE: This feature is available after the Uniswap pool creation by the community.
You can exchange PIXELFOXES20 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 PIXELFOXES20-ETH pair in order to perform this operation.
7. Provide Liquidity for PIXELFOXES20-ETH Pair
You can provide Liquidity to the PIXELFOXES20/ETH pair and earn trading fees.
Add liquidity to the Uniswap PIXELFOXES20/ETH pair. You will need to provide PIXELFOXES20 and ETH in order to do it.
How does the Floor Price and the token price of PIXELFOXES20 change?
The Floor Price of Pixel Foxes on NFT20 and the token price of PIXELFOXES20 fluctuate with the buy and sell transactions.
If more people buy PIXELFOXES20 tokens, then the PIXELFOXES20 token price and the floor price (100 PIXELFOXES20) of a Pixel Foxes NFT in the pool go up. Similarly, if more people liquidate their PIXELFOXES20 tokens for ETH, the price goes down.
