A Detailed Guide for using the LUCKY MANEKI NFT20 Pool
What is NFT20?
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 MANEKI20 then it means that you own 50% of a Floor LUCKY MANEKI (the cheapest LUCKY MANEKI).
What is an NFT20 Pool and what can you do with them?
The NFT20 Pool contains LUCKY MANEKI that other users have deposited and you can perform different actions on it using LUCKY MANEKI. MANEKI20 is an ERC20 token created specifically for the LUCKY MANEKI NFT20 Pool and it can be traded on Uniswap.
Use cases for the NFT20 pool and MANEKI20:
- You can deposit a LUCKY MANEKI into the pool for 95 MANEKI20 tokens.
- You can use 100 MANEKI20 tokens to swap out any LUCKY MANEKI in the pool.
- You can swap a LUCKY MANEKI with any other LUCKY MANEKI in the pool.
- You can buy directly using ETH from the pool.
- You can exchange your ETH for MANEKI20 on Uniswap.
- You can exchange your MANEKI20 tokens for ETH on Uniswap when there is enough liquidity.
- You can provide Liquidity for MANEKI20-ETH Pair .
Note: All LUCKY MANEKI are treated equally in the pool so you should only deposit LUCKY MANEKI that you think are common (i.e Floor LUCKY MANEKI)
We will go over each of the above use cases in more detail below.
1. Swapping a LUCKY MANEKI with another LUCKY MANEKI in the pool
- Select the “Swap NFT to NFT” toggle above.
- In “FROM”, select a LUCKY MANEKI from your wallet
- In “TO”, select that cute LUCKY MANEKI from the pool that you like better
Note: Unlike using MANEKI20 , you can swap a LUCKY MANEKI in your wallet for another LUCKY MANEKI in the pool without the 5% fee and only pay a gas fee.
2. Depositing a LUCKY MANEKI into the pool
You can deposit a LUCKY MANEKI into the pool and in return, you will get 95 MANEKI20 tokens. The remaining 5 act as a 5% fee and get distributed to $MUSE token holders.
3. Buying a LUCKY MANEKI from the pool using 100 MANEKI20
If you click on 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 MANEKI20 for a LUCKY MANEKI !
4. Buying a LUCKY MANEKI directly from the pool
There’s also a new feature where you can also directly buy a LUCKY MANEKI from the pool using ETH without dealing with MANEKI20 . The NFT20 platform will do all the Uniswap operations for you in 1 transaction. There’s a 5% fee to it but it might be more cost-efficient since you can save on gas fees.
5. Exchanging ETH for MANEKI20 on Uniswap
Since MANEKI20 is an ERC20 token, you can directly get it from Uniswap. You can also directly click on this link to access the MANEKI20 Uniswap exchange page.
6. Exchanging MANEKI20 to ETH
Similarly, you can exchange MANEKI20 for ETH on Uniswap. The great part about this is that you do not need to look for a buyer (compared to OpenSea). Here’s the Uniswap link.
There will need to be enough liquidity in MANEKI20 in order to perform this operation.
7. Provide Liquidity for MANEKI20-ETH Pair
You can provide Liquidity to the MANEKI20 /ETH pair .
- Add liquidity to the Uniswap MANEKI20/ETH pair. You will need to provide MANEKI20 and ETH in order to do it.
How does the Floor Price and the token price of MANEKI20 change?
The Floor Price of LUCKY MANEKI on NFT20 and the token price of MANEKI20 fluctuates with the buy and sell transactions.
If more people buy MANEKI20 tokens, then the MANEKI20 token price and the Floor Price (100 MANEKI20 ) of a LUCKY MANEKI on the NFT20 pool go up. If more people liquidate their MANEKI20 tokens for ETH, the price goes down.
