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 COMIC20 then it means that you own 50% of a Floor PUNKS COMIC (the cheapest PUNKS COMIC ).
What is an NFT20 Pool and what can you do with them?
The NFT20 Pool contains PUNKS COMIC that other users have deposited and you can perform different actions on it using COMIC20 . COMIC20 is an ERC20 token created specifically for the PUNKS COMIC NFT20 Pool and it can be traded on Uniswap.
Use cases for the NFT20 pool and COMIC20:
- Maintain a stable floor price by giving 1 click instant liquidity to sellers, instead of a race to the bottom price on an open marketplace
- You can deposit a PUNKS COMIC into the pool for 95 COMIC20 tokens.
- You can use 100 COMIC20 tokens to swap out any PUNKS COMIC in the pool.
- You can swap a PUNKS COMIC with any other PUNKS COMIC in the pool.
- You can buy directly using ETH from the pool.
- You can exchange your ETH for COMIC20 on Uniswap.
- You can exchange your COMIC20 tokens for ETH on Uniswap when there is enough liquidity.
- You can provide Liquidity for COMIC20-ETH Pair .
Note: All PUNKS COMIC are treated equally in the pool so you should only deposit PUNKS COMIC that you think are common (i.e Floor PUNKS COMIC )
We will go over each of the above use cases in more detail below.
1. Swapping a PUNKS COMIC with another PUNKS COMIC in the pool
- Select the “Swap NFT to NFT” toggle above.
- In “FROM”, select a PUNKS COMIC from your wallet
- In “TO”, select a PUNKS COMIC from the pool that you like better
Note: Unlike using COMIC20, you can swap a PUNKS COMIC in your wallet for another PUNKS COMIC in the pool without the 5% fee and only pay a gas fee.
2. Depositing a PUNKS COMIC into the pool
You can deposit a PUNKS COMIC into the pool and in return, you will get 95 COMIC20 tokens. The remaining 5 act as a 5% fee and get distributed to $MUSE token holders.
3. Buying a PUNKS COMIC from the pool using 100 COMIC20
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 COMIC20 for a PUNKS COMIC !
4. Buying a PUNKS COMIC directly from the pool
There’s also a new feature where you can also directly buy a PUNKS COMIC from the pool using ETH without dealing with COMIC20 . 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 COMIC20 to ETH
Similarly, you can exchange COMIC20 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 in COMIC20 in order to perform this operation.
6. Provide Liquidity for COMIC20-ETH Pair
You can provide Liquidity to the COMIC20/ETH pair .
- Add liquidity to the Uniswap COMIC20/ETH pair. You will need to provide COMIC20 and ETH in order to do it.
How does the Floor Price and the token price of COMIC20 change?
The Floor Price of PUNKS COMIC on NFT20 and the token price of COMIC20 fluctuates with the buy and sell transactions.
If more people buy COMIC20tokens, then the COMIC20 token price and the Floor Price (100 COMIC20 ) of a PUNKS COMIC on the NFT20 pool go up. If more people liquidate their COMIC20 tokens for ETH, the price goes down.
