How to use the Society of Derivative Apes 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 SODA20 then it means that you own 50% of a floor Society of Derivative Apes (cheapest Society of Derivative Apes).
What is an NFT20 Pool and what can you do with it?
The NFT20 Pool contains Society of Derivative Apes NFTs that other users have deposited, and you can perform different actions on it using SODA20. SODA20 is an ERC20 token created specifically for the Society of Derivative Apes NFT20 Pool and it can be traded on Uniswap.
Use cases for the NFT20 pool and SODA20:
- You can deposit a Society of Derivative Apes into the pool for 95 SODA20 tokens.
- You can use 100 SODA20 tokens to swap out any Society of Derivative Apes in the pool.
- You can swap a Society of Derivative Ape with any other Society of Derivative Ape in the pool.
- You can buy directly using ETH from the pool (When there is enough liquidity).
- You can exchange your ETH for SODA20 on Uniswap(When there is enough liquidity).
- You can exchange your SODA20 tokens for ETH on Uniswap (When there is enough liquidity).
- You can provide Liquidity for the SODA20-ETH Pair and earn trading fees.
Note: All Society of Derivative Apes are treated equally in the pool so you should only deposit Society of Derivative Apes that you think are common (i.e. floor Society of Derivative Apes).
We will go over each of the above use cases in more detail below.
1. Swapping a Society of Derivative Apes with another Society of Derivative Apes in the pool
Select the “Swap NFT to NFT” toggle above.
- In “FROM”, select a Society of Derivative Apes from your wallet.
- In “TO”, select the Society of Derivative Apes 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 SODA20, you can swap a Society of Derivative Apes in your wallet for another Society of Derivative Apes in the pool without the 5% fee and only pay the gas fee for the swap transaction.
2. Depositing Society of Derivative Apes into the Pool for SODA20
You can deposit a Society of Derivative Apes into the pool and in return, you will get 95 SODA20 tokens. The remaining 5 tokens act as a 5% fee which is distributed to $MUSE stakers.
3. Buying a Society of Derivative Apes from the Pool using 100 SODA20
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 SODA20 for any Society of Derivative Apes of your choice!
4. Buying/selling a Society of Derivative Apes 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 Society of Derivative Apes in the Pool from the pool using ETH without dealing with SODA20. 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 SODA20 on Uniswap
NOTE: This feature is available after the Uniswap pool creation by the community.
Since SODA20 is an ERC20 token, you can directly get it from Uniswap. You can also directly click on this link to access the SODA20 Uniswap exchange page.
6. Exchanging SODA20 to ETH
NOTE: This feature is available after the Uniswap pool creation by the community.
You can exchange SODA20 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 SODA20-ETH Pair
You can provide Liquidity to the SODA20/ETH pair and earn trading fees.
To add liquidity on the Uniswap SODA20/ETH pair you will need to provide SODA20 and ETH.
How does the Floor Price and the token price of SODA20 change?
The floor price of Society of Derivative Apes in the Pool on NFT20 and the token price of SODA20 fluctuate with the buy and sell transactions.
If more people buy SODA20 tokens, then the SODA20 token price and the floor price (100 SODA20) of a Society of Derivative Apes in the Pool NFT in the pool go up. Similarly, if more people liquidate their SODA20 tokens for ETH, the price goes down.
