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