How to Use the Whatty Club 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 WHATTY20 then it means that you own 50% of a floor Whatty (cheapest Whatties).
What is an NFT20 Pool and what can you do with it?
The NFT20 Pool contains Whatty Club NFTs that other users have deposited, and you can perform different actions on it using WHATTY20. WHATTY20 is an ERC20 token created specifically for the Whatty Club NFT20 Pool and it can be traded on Uniswap.
Use cases for the NFT20 pool and WHATTY20:
- You can swap a Whatty with any other Whatty in the pool.
- You can deposit a Whatty into the pool for 95 WHATTY20 tokens.
- You can use 100 WHATTY20 tokens to swap out any Whatty in the pool.
- You can exchange your ETH for WHATTY20 on Uniswap (When there is enough liquidity).
- You can exchange your WHATTY20 tokens for ETH on Uniswap (When there is enough liquidity).
- You can provide Liquidity for the WHATTY20-ETH Pair on Uniswap.
- You can buy a Whatty directly using ETH from the pool (When there is enough liquidity).
- You can sell a Whatty directly to the pool in exchange for ETH (When there is enough liquidity).
Note: All Whatties are treated equally in the pool so you should only deposit Whatties that you think are common (i.e. floor Whatties).
We will go over each of the above use cases in more detail below.
In case you’re new to NFTs and DeFi, you may want to read chapters 1., 7. and 8 first, as they describe the easiest ways to use the pool without getting too technical.
1. Swapping a Whatty with another Whatty in the pool
NFT to NFT swap
- Select the “Swap NFT to NFT” toggle above.
- In “FROM”, select a Whatty from your wallet.
- In “TO”, select the Whatty 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 WHATTY20, you can swap a Whatty in your wallet for another Whatty in the pool without the 5% fee and only pay the gas fee for the swap transaction.
2. Depositing Whatties into the Pool for WHATTY20
Depositing Whatties (NFT) for WHATTY20 (ERC-20)
You can deposit a Whatty into the pool and in return, you will get 95 WHATTY20 tokens. The remaining 5 tokens act as a 5% fee which is distributed to $MUSE stakers.
3. Buying a Whatty from the Pool using 100 WHATTY20
Using WHATTY20 to redeem a Whatty Club NFT
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 WHATTY20 for any Whatty of your choice!
4. Exchanging ETH for WHATTY20 on Uniswap
Buying WHATTY20 on Uniswap
NOTE: This feature is available after the Uniswap pool creation by the community.
Since WHATTY20 is an ERC20 token, you can directly get it from Uniswap. You can also directly click on this link to access the WHATTY20 Uniswap exchange page.
5. Exchanging WHATTY20 to ETH
Selling WHATTY20 on Uniswap
NOTE: This feature is available after the Uniswap pool creation by the community.
You can exchange WHATTY20 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 WHATTY20-ETH pair in order to perform this operation.
6. Provide Liquidity for WHATTY20-ETH Pair
You can provide Liquidity to the WHATTY20/ETH pair.
Adding liquidity on Uniswap
Add liquidity to the Uniswap WHATTY20/ETH pair. You will need to provide WHATTY20 and ETH in order to do it.
How does the Floor Price and the token price of WHATTY20 change?
The Floor Price of Whatties on NFT20 and the token price of WHATTY20 fluctuate with the buy and sell transactions.
If more people buy WHATTY20 tokens, then the WHATTY20 token price and the floor price (100 WHATTY20) of a Whatty Club NFT in the pool go up. Similarly, if more people liquidate their WHATTY20 tokens for ETH, the price goes down.
7. Buying a Whatty directly from the pool
There’s also a feature where you can directly buy a Whatty from the pool using ETH without dealing with WHATTY20. 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.
Buying a Whatty directly from the Pool
When you scroll down on the pool page you can see all Whatties that are currently in the pool.
If you want to buy a Whatty with ETH, all you need to do is click the “Buy now” button below the Whatty you’re interested in.
Once you clicked the “buy now” button a popup appears with the information about the current price for one Whatty. (The PopUp disappears again, after clicking on the Whatty in the Pop Up window.)
After accepting the price by pressing the button in the Pop Up you need to accept the transaction in MetaMask and once the transaction is confirmed, the Whatty is yours.
8. Selling a Whatty directly into the pool
You can also sell a Whatty to the pool in the same way like buying.
All you need to to is switch from “Buy From Pool” to “Sell From Wallet” in the upper right corner of the pool details:
The selling works similar to buying. First you select the Whatty you want to sell, then you need to accept the price and confirm the transaction.
