A Detailed Guide for using the CYBERKONGZ 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 KONGZ20 then it means that you own 50% of a Floor CYBERKONGZ(the cheapest CYBERKONGZ ).
What is an NFT20 Pool and what can you do with them?
The NFT20 Pool contains CYBERKONGZ that other users have deposited and you can perform different actions on it using KONGZ20. KONGZ20 is an ERC20 token created specifically for the CYBERKONGZ NFT20 Pool and it can be traded on Uniswap.
Use cases for the NFT20 pool and KONGZ20 :
- You can deposit a CYBERKONGZ into the pool for 95 KONGZ20 tokens.
- You can use 100 KONGZ20 tokens to swap out any CYBERKONGZ in the pool.
- You can swap a CYBERKONGZ with any other CYBERKONGZ in the pool.
- You can buy directly using ETH from the pool.
- You can exchange your ETH for KONGZ20 on Uniswap.
- You can exchange your KONGZ20 tokens for ETH on Uniswap when there is enough liquidity.
- You can provide Liquidity for KONGZ20-ETH Pair and earn rewards in $MUSE.
Note: All CYBERKONGZ are treated equally in the pool so you should only deposit CYBERKONGZ that you think are common (i.e Floor CYBERKONGZ)
We will go over each of the above use cases in more detail below.
1. Swapping a CYBERKONGZ with another CYBERKONGZ in the pool
- Select the “Swap NFT to NFT” toggle above.
- In “FROM”, select a CYBERKONGZ from your wallet
- In “TO”, select a CYBERKONGZ from the pool that you like better
Note: Unlike using KONGZ20 , you can swap a CYBERKONGZ in your wallet for another CYBERKONGZ in the pool without the 5% fee and only pay a gas fee.
2. Depositing a CYBERKONGZ into the pool
You can deposit a CYBERKONGZ into the pool and in return, you will get 95 KONGZ20 tokens. The remaining 5 act as a 5% fee and get distributed to $MUSE token holders.
3. Buying a CYBERKONGZ from the pool using 100 KONGZ20
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 KONGZ20 for a CYBERKONGZ !
4. Buying a CYBERKONGZ directly from the pool
There’s also a new feature where you can also directly buy a CYBERKONGZ from the pool using ETH without dealing with KONGZ20. 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 KONGZ20 on Uniswap
Since KONGZ20 is an ERC20 token, you can directly get it from Uniswap. You can also directly click on this link to access the KONGZ20 Uniswap exchange page.
6. Exchanging KONGZ20 to ETH
Similarly, you can exchange KONGZ20 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 KONGZ20 in order to perform this operation.
7. Provide Liquidity for KONGZ20-ETH Pair and earn rewards in $MUSE
You can provide Liquidity to the KONGZ20/ETH pair and earn $MUSE tokens.
- Add liquidity to the Uniswap KONGZ20/ETH pair. You will need to provide KONGZ20 and ETH in order to do it. You will receive Uniswap LP tokens.
- Deposit the Uniswap LP token you have received on the NFT20 farm page and start earning $MUSE.
$MUSE token serves as the governance token for the NFT20 exchange and holders will receive 5% in transaction fees collected through all NFT trades on NFT20.
Note: the farm might be deactivated depending on the activity
The farm for KONGZ20 is active as of the time of the writing but it might be replaced by another more actively used NFT20 pool when the NFT20 Team sees fit.
How does the Floor Price and the token price of KONGZ20 change?
The Floor Price of CYBERKONGZ on NFT20 and the token price of KONGZ20 fluctuates with the buy and sell transactions.
If more people buy KONGZ20 tokens, then the KONGZ20 token price and the Floor Price (100 KONGZ20) of a CYBERKONGZ on the NFT20 pool go up. If more people liquidate their KONGZ20 tokens for ETH, the price goes down.
