How to use the Skullx 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 SKULLX20 then it means that you own 50% of a floor Skullx (cheapest Skullx).
What is an NFT20 Pool and what can you do with it?
The NFT20 Pool contains Skullx NFTs that other users have deposited, and you can perform different actions on it using SKULLX20. SKULLX20 is an ERC20 token created specifically for the Skullx NFT20 Pool and it can be traded on Uniswap.
Use cases for the NFT20 pool and SKULLX20:
- You can deposit a Skullx into the pool for 95 SKULLX20 tokens.
- You can use 100 SKULLX20 tokens to swap out any Skullx in the pool.
- You can swap a Skullx with any other Skullx in the pool.
- You can buy directly using ETH from the pool*
- You can exchange your ETH for SKULLX20 on Uniswap*
- You can exchange your SKULLX20 tokens for ETH on Uniswap*
- You can provide Liquidity for the SKULLX20-ETH Pair and earn trading fees.
*When there is enough liquidity
Note: All Skullx are treated equally in the pool so you should only deposit Skullx that you think are common (i.e. floor Skullx).
We will go over each of the above use cases in more detail below.
1. Swapping a Skullx with another Skullx in the pool
Select the “Swap NFT to NFT” toggle above.
- In “FROM”, select a Skullx from your wallet.
- In “TO”, select the Skullx 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 SKULLX20, you can swap a Skullx in your wallet for another Skullx in the pool without the 5% fee and only pay the gas fee for the swap transaction.
2. Depositing Skullx into the Pool for SKULLX20
You can deposit a Skullx into the pool and in return, you will get 95 SKULLX20 tokens. The remaining 5 tokens act as a 5% fee which is distributed to $MUSE stakers.
3. Buying a Skullx from the Pool using 100 SKULLX20
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 SKULLX20 for any Skullx of your choice!
4. Buying/selling a Skullx directly from the pool
NOTE: This feature is available after the Uniswap pool creation by the community, and enough liquidity added.
There’s also a feature where you can directly buy a Skullx in the Pool using ETH without dealing with SKULLX20. 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 SKULLX20 on Uniswap
NOTE: This feature is available after the Uniswap pool creation by the community.
Since SKULLX20 is an ERC20 token, you can directly get it from Uniswap. You can also directly click on this link to access the SKULLX20 Uniswap exchange page.
6. Exchanging SKULLX20 to ETH
NOTE: This feature is available after the Uniswap pool creation by the community.
You can exchange SKULLX20 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 SKULLX20-ETH Pair
You can provide Liquidity to the SKULLX20/ETH pair and earn trading fees.
To add liquidity on the Uniswap SKULLX20/ETH pair you will need to provide SKULLX20 and ETH.
How does the Floor Price and the token price of SKULLX20 change?
The floor price of Skullx in the Pool on NFT20 and the token price of SKULLX20 fluctuate with the buy and sell transactions.
If more people buy SKULLX20 tokens, then the SKULLX20 token price and the floor price (100 SKULLX20) of a Skullx in the pool go up. Similarly, if more people liquidate their SKULLX20 tokens for ETH, the price goes down.
