How to use the Deadfellaz liquidity pool on NFT20

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 permissionless 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 50DEADFELLAZ20 then it means that you own 50% of a Floor Deadfellaz (cheapest Deadfellaz).

What is an NFT20 Pool and what can you do with it?

The NFT20 Pool contains Deadfellaz that other users have deposited, and you can perform different actions on it using DEADFELLAZ20. DEADFELLAZ20 is an ERC20 token created specifically for the Deadfellaz NFT20 Pool and it can be traded on Uniswap.

Use cases for the NFT20 pool and Deadfellaz:

  1. You can deposit a Deadfellaz into the pool for 95 DEADFELLAZ20 tokens.
  2. You can use 100 DEADFELLAZ20 tokens to swap out any Deadfellaz in the pool.
  3. You can swap a Deadfellaz with any other Deadfellaz in the pool.
  4. You can buy directly using ETH from the pool.
  5. You can exchange your ETH for DEADFELLAZ20 on Uniswap.
  6. You can exchange your DEADFELLAZ20 tokens for ETH on Uniswap when there is enough liquidity.
  7. You can provide Liquidity for the DEADFELLAZ20-ETH Pair.

Note: All Deadfellaz are treated equally in the pool so you should only deposit Deadfellaz that you think are common (i.e. Deadfellaz).

We will go over each of the above use cases in more detail below.

1. Swapping a Deadfellaz with another Deadfellaz in the pool

NFT to NFT swap
  1. Select the “Swap NFT to NFT” toggle above.
  2. In “FROM”, select a Deadfellaz from your wallet.
  3. In “TO”, select a Deadfellaz from the pool that you prefer.
  4. Click on “APPROVE” which is a one-time transaction giving the DEX the authority to execute your transactions, and finally click on “SWAP” to complete the process.

Note: Unlike using DEADFELLAZ20, you can swap a Deadfellaz in your wallet for another Deadfellaz in the pool without the 5% fee and only pay the gas fee for the swap transaction.

2. Depositing a Deadfellaz into the Pool

Depositing your NFT for DEADFELLAZ20

You can deposit a Deadfellaz into the pool and in return, you will get 95 DEADFELLAZ20 tokens. The remaining 5 tokens act as a 5% fee which is distributed to $MUSE token holders.

3. Buying a Deadfellaz from the Pool using 100 DEADFELLAZ20

Using DEADFELLAZ20 to redeem the selected NFT

If you toggle 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 DEADFELLAZ20 for a Deadfellaz!

4. Buying a Deadfellaz directly from the pool

There’s also a new feature where you can also directly buy a Deadfellaz from the pool using ETH without dealing with DEADFELLAZ20. The NFT20 platform will do all the Uniswap operations for you in a single transaction. According to the NFT20 Team, 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 DEADFELLAZ20 on Uniswap

Buying DEADFELLAZ20 on Uniswap

NOTE: This feature is available after the Uniswap pool creation by the community.

Since DEADFELLAZ20 is an ERC20 token, you can directly get it from Uniswap. You can also directly click on this link to access the DEADFELLAZ20 Uniswap exchange page.

6. Exchanging DEADFELLAZ20 to ETH

NOTE: This feature is available after the Uniswap pool creation by the community.

Similarly, you can exchange DEADFELLAZ20 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 for the DEADFELLAZ20-ETH pair in order to perform this operation.

7. Provide Liquidity for DEADFELLAZ20-ETH Pair

You can provide Liquidity to the DEADFELLAZ20/ETH pair.

Adding liquidity on Uniswap

Add liquidity to the Uniswap DEADFELLAZ20/ETH pair. You will need to provide DEADFELLAZ20 and ETH in order to do it.

How does the Floor Price and the token price of DEADFELLAZ20 change?

The Floor Price of Deadfellaz on NFT20 and the token price of DEADFELLAZ20 fluctuate with the buy and sell transactions.

If more people buy DEADFELLAZ20 tokens, then the DEADFELLAZ20 token price and the Floor Price (100 DEADFELLAZ20) of a Deadfellaz on the NFT20 pool go up. Similarly, if more people liquidate their DEADFELLAZ20 tokens for ETH, the price goes down.

Published By : Very Nifty


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