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 MORPH20 then it means that you own 50% of a Floor POLYMORPHS(the cheapest POLYMORPHS).
What is an NFT20 Pool and what can you do with them?
The NFT20 Pool contains POLYMORPHS that other users have deposited and you can perform different actions on it using MORPH20. MORPH20 is an ERC20 token created specifically for the POLYMORPHS NFT20 Pool and it can be traded on Uniswap.
Use cases for the NFT20 pool and MORPH20:
- You can deposit a POLYMORPHS into the pool for 95 MORPH20 tokens.
- You can use 100 MORPH20 tokens to swap out any POLYMORPHS in the pool.
- You can swap a POLYMORPHS with any other POLYMORPHS in the pool.
- You can buy directly using ETH from the pool.
- You can exchange your ETH for MORPH20 on Uniswap.
- You can exchange your MORPH20 tokens for ETH on Uniswap when there is enough liquidity.
- You can provide Liquidity for MORPH20-ETH Pair.
Note: All POLYMORPHS are treated equally in the pool so you should only deposit POLYMORPHS that you think are common (i.e Floor POLYMORPHS)
We will go over each of the above use cases in more detail below.
1. Swapping a POLYMORPHS with another POLYMORPHS in the pool
- Select the “Swap NFT to NFT” toggle above.
- In “FROM”, select a POLYMORPHS from your wallet
- In “TO”, select a POLYMORPHS from the pool that you like better
Note: Unlike using MORPH20, you can swap a POLYMORPHS in your wallet for another POLYMORPHS in the pool without the 5% fee and only pay a gas fee.
2. Depositing a POLYMORPHS into the pool
You can deposit a POLYMORPHS into the pool and in return, you will get 95 MORPH20 tokens. The remaining 5 act as a 5% fee and get distributed to $MUSE token holders.
3. Buying a POLYMORPHS from the pool using 100 MORPH20
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 MORPH20 for a POLYMORPHS!
4. Buying a POLYMORPHS directly from the pool
There’s also a new feature where you can also directly buy a POLYMORPHS from the pool using ETH without dealing with MORPH20. 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 MORPH20 on Uniswap
Since MORPH20 is an ERC20 token, you can directly get it from Uniswap. You can also directly click on this link to access the MORPH20 Uniswap exchange page.
6. Exchanging MORPH20 to ETH
Similarly, you can exchange MORPH20 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 MORPH20 in order to perform this operation.
7. Provide Liquidity for MORPH20-ETH Pair
You can provide Liquidity to the MORPH20/ETH pair .
- Add liquidity to the Uniswap MORPH20/ETH pair. .You will need to provide MORPH20 and ETH in order to do it.
How does the Floor Price and the token price of MORPH20 change?
The Floor Price of POLYMORPHS on NFT20 and the token price of MORPH20 fluctuates with the buy and sell transactions.
If more people buy MORPH20 tokens, then the MORPH20 token price and the Floor Price (100MORPH20) of a POLYMORPHS on the NFT20 pool go up. If more people liquidate their MORPH20 tokens for ETH, the price goes down.
Thanks to Resistance for creating the pool for the Polymorhps community
