How to Use the Woodies 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 WOODIE20 then it means that you own 50% of a floor Woodies (cheapest Woodies).
What is an NFT20 Pool and what can you do with it?
The NFT20 Pool contains Woodies NFTs that other users have deposited, and you can perform different actions on it using WOODIE20. WOODIE20 is an ERC20 token created specifically for the Woodies NFT20 Pool and it can be traded on Uniswap.
Use cases for the NFT20 pool and WOODIE20:
- You can deposit a Woodies into the pool for 95 WOODIE20 tokens.
- You can use 100 WOODIE20 tokens to swap out any Woodies in the pool.
- You can swap a Woodies with any other Woodies in the pool.
- You can buy directly using ETH from the pool (When there is enough liquidity).
- You can exchange your ETH for WOODIE20 on Uniswap(When there is enough liquidity).
- You can exchange your WOODIE20 tokens for ETH on Uniswap (When there is enough liquidity).
- You can provide Liquidity for the WOODIE20-ETH Pair and earn trading fees.
Note: All Woodies are treated equally in the pool so you should only deposit Woodies that you think are common (i.e. floor Woodies).
We will go over each of the above use cases in more detail below.
1. Swapping a Woodies with another Woodies in the pool
Select the “Swap NFT to NFT” toggle above.
- In “FROM”, select a Woodies from your wallet.
- In “TO”, select the Woodies 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 WOODIE20, you can swap a Woodies in your wallet for another Woodies in the pool without the 5% fee and only pay the gas fee for the swap transaction.
2. Depositing Woodies into the Pool for WOODIE20
You can deposit a Woodies into the pool and in return, you will get 95 WOODIE20 tokens. The remaining 5 tokens act as a 5% fee which is distributed to $MUSE stakers.
3. Buying a Woodies from the Pool using 100 WOODIE20
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 WOODIE20 for any Woodies of your choice!
4. Buying/selling a Woodies directly from the pool
There’s also a feature where you can directly buy a Woodies from the pool using ETH without dealing with WOODIE20. 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 WOODIE20 on Uniswap
NOTE: This feature is available after the Uniswap pool creation by the community.
Since WOODIE20 is an ERC20 token, you can directly get it from Uniswap. You can also directly click on this link to access the WOODIE20 Uniswap exchange page.
6. Exchanging WOODIE20 to ETH
NOTE: This feature is available after the Uniswap pool creation by the community.
You can exchange WOODIE20 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 WOODIE20-ETH pair in order to perform this operation.
7. Provide Liquidity for WOODIE20-ETH Pair
You can provide Liquidity to the WOODIE20/ETH pair and earn trading fees.
Add liquidity to the Uniswap WOODIE20/ETH pair. You will need to provide WOODIE20 and ETH in order to do it.
How does the Floor Price and the token price of WOODIE20 change?
The Floor Price of Woodies on NFT20 and the token price of WOODIE20 fluctuate with the buy and sell transactions.
If more people buy WOODIE20 tokens, then the WOODIE20 token price and the floor price (100 WOODIE20) of a Woodies NFT in the pool go up. Similarly, if more people liquidate their WOODIE20 tokens for ETH, the price goes down.
