This blog post should not be interpreted as financial advice and is simply for informational purposes only.
What is the NFTx Liquidity Pool?
(defiprime) – “NFTX is a protocol built on top of Ethereum which lets you deposit your NFT collections into vaults, giving you back an ERC20 token to be utilized as a composable money lego in the broader DeFi ecosystem. This means you can utilize your NFTs as collateral for anything the DeFi ecosystem offers: ranging from creating liquid NFT pools on i.e. Uni/SushiSwap/Balancer, using your NFTs as collateral in lending/borrowing protocols, add them as collateral for index products such as PieDAO / Indexed and so forth.”
What is the purpose of a liquidity pool?
To stabilize the floor price of NFTs. Generally, there aren’t many reasons, if any, to sell your Gutter NFTs on OpenSea below the floor price when you can get the floor price instantly by selling your NFT to the liquidity pool. Liquidity pools help preserve floor prices and organic growth, while mitigating undercutting at the same time.
What is the basic liquidity pool process?
1. Deposit your Gutter Cat Gang NFT into the Pool and Earn $GCG. $GCG can be used to buy Gutter species in the liquidity pool or be swapped for ETH using Sushiswap
2. Provide $GCG/ETH Liquidity for Fees and $LP Tokens.
3. Stake $LP Tokens for Additional Rewards (aka Yield Farming/Liquidity Mining).
Buying from the Liquidity Pool
1. Click on Buy. Select which Gutter NFT you would like to purchase. Alternatively, you can click on “REDEEM” to purchase a randomly selected Gutter NFT in the pool.
2. After confirming the transaction, the NFT will appear in your OpenSea wallet.
Please note – you will have to pay a gas fee for selling and buying from the Liquidity Pool.
– Provide $GCG/ETH Liquidity and Earn Fees (Sushiswap)
– Yield Farming/Liquidity Mining Rewards
– Random Or Targeted Gutter Cat Redeem
– 5% Fee on mint