A Detailed Guide for using the SLACKER DUCK POND 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 SDP20 then it means that you own 50% of a Floor SLACKER DUCK POND (the cheapest SLACKER DUCK POND).
What is an NFT20 Pool and what can you do with them?
The NFT20 Pool contains SLACKER DUCK POND that other users have deposited and you can perform different actions on it using SDP20. SDP20 is an ERC20 token created specifically for the SLACKER DUCK PONDNFT20 Pool and it can be traded on Uniswap.
Use cases for the NFT20 pool and SDP20:
- You can deposit a SLACKER DUCK POND into the pool for 95 SDP20 tokens.
- You can use 100 SDP20 tokens to swap out any SLACKER DUCK POND in the pool.
- You can swap a SLACKER DUCK POND with any other SLACKER DUCK POND in the pool.
- You can buy directly using ETH from the pool.
- You can exchange your ETH for SDP20 on Uniswap.
- You can exchange your SDP20 tokens for ETH on Uniswap when there is enough liquidity.
- You can provide Liquidity for SDP20-ETH Pair and earn rewards in $MUSE.
Note: All SLACKER DUCK POND are treated equally in the pool so you should only deposit SLACKER DUCK POND that you think are common (i.e Floor SLACKER DUCK POND)
We will go over each of the above use cases in more detail below.
1. Swapping a SLACKER DUCK POND with another SLACKER DUCK POND in the pool
- Select the “Swap NFT to NFT” toggle above.
- In “FROM”, select a SLACKER DUCK POND
- from your wallet
- In “TO”, select that cute SLACKER DUCK POND from the pool that you like better
Note: Unlike using SDP20 , you can swap a SLACKER DUCK POND in your wallet for another SLACKER DUCK POND in the pool without the 5% fee and only pay a gas fee.
2. Depositing a SLACKER DUCK POND into the pool
You can deposit a SLACKER DUCK POND into the pool and in return, you will get 95 SDP20 tokens. The remaining 5 act as a 5% fee and get distributed to $MUSE token holders.
3. Buying a SLACKER DUCK POND from the pool using 100 SDP20
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 SLACKER DUCK POND for a SLACKER DUCK POND !
4. Buying a SLACKER DUCK POND directly from the pool
There’s also a new feature where you can also directly buy a SLACKER DUCK POND from the pool using ETH without dealing with SDP20 . 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 SDP20 on Uniswap
Trading ETH for SLACKER DUCK POND
Since SDP20 is an ERC20 token, you can directly get it from Uniswap. You can also directly click on this link to access the SDP20 Uniswap exchange page.
6. Exchanging SDP20 and change it to ETH
Similarly, you can exchange SDP20 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 SDP20 in order to perform this operation.
7. Provide Liquidity for SDP20-ETH
You can provide Liquidity to the SDP20/ETH .
- Add liquidity to the Uniswap SDP20/ETH pair. You will need to provide SDP20 and ETH in order to do it.
How does the Floor Price and the token price of SDP20 change?
The Floor Price of SLACKER DUCK POND on NFT20 and the token price of SDP20 fluctuates with the buy and sell transactions.
If more people buy SDP20 tokens, then the SDP20 token price and the Floor Price (100 SDP20 ) of a SLACKER DUCK POND on the NFT20 pool go up. If more people liquidate their SDP20 tokens for ETH, the price goes down.