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 GONS20 then it means that you own 50% of a Floor GORILLA NEMESIS(the cheapest GORILLA NEMESIS).
What is an NFT20 Pool and what can you do with them?
The NFT20 Pool contains GORILLA NEMESIS that other users have deposited and you can perform different actions on it using GONS20. GONS20 is an ERC20 token created specifically for the GORILLA NEMESIS NFT20 Poo and it can be traded on Uniswap.
Use cases for the NFT20 pool and GONS20:
- You can deposit a GORILLA NEMESIS into the pool for 95 GONS20 tokens.
- You can use 100 GONS20 tokens to swap out any GORILLA NEMESIS in the pool.
- You can swap a GORILLA NEMESIS with any other GORILLA NEMESIS in the pool.
- You can buy directly using ETH from the pool.
- You can exchange your ETH for GONS20 on Uniswap.
- You can exchange your GONS20 tokens for ETH on Uniswap when there is enough liquidity.
Note: All GORILLA NEMESIS are treated equally in the pool so you should only deposit GORILLA NEMESIS that you think are common (i.e Floor GORILLA NEMESIS)
We will go over each of the above use cases in more detail below.
1. Swapping a GORILLA NEMESIS with another GORILLA NEMESIS in the pool
- Select the “Swap NFT to NFT” toggle above.
- In “FROM”, select a GORILLA NEMESIS from your wallet
- In “TO”, select that cute GORILLA NEMESIS from the pool that you like better
Note: Unlike using GONS20 , you can swap a GORILLA NEMESIS in your wallet for another GORILLA NEMESIS in the pool without the 5% fee and only pay a gas fee.
2. Depositing a GORILLA NEMESIS into the pool
You can deposit a GORILLA NEMESIS into the pool and in return, you will get 95 GONS20 tokens. The remaining 5 act as a 5% fee and get distributed to $MUSE token holders.
3. Buying a GORILLA NEMESIS from the pool using 100 GONS20
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 GONS20 for a GORILLA NEMESIS!
4. Buying a GORILLA NEMESIS directly from the pool
There’s also a new feature where you can also directly buy a GORILLA NEMESIS from the pool using ETH without dealing with GONS20. 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 GONS20 on Uniswap
Since GONS20 is an ERC20 token, you can directly get it from Uniswap. You can also directly click on this link to access the GONS20 Uniswap exchange page.
6. Exchanging GONS20 to ETH
Similarly, you can exchange GONS20 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 GONS20 in order to perform this operation.
7. Provide Liquidity for GONS2 0-ETH Pair
You can provide Liquidity to the GONS20/ETH pair .
How does the Floor Price and the token price of
The Floor Price of GORILLA NEMESIS on NFT20 and the token price of GONS20 fluctuates with the buy and sell transactions.
If more people buy GONS20 tokens, then the GONS20 token price and the Floor Price (100 GONS20 ) of a GORILLA NEMESIS on the NFT20 pool go up. If more people liquidate their GONS20 tokens for ETH, the price goes down.
Published By : Medium