What is NFT20?
NFT20 is a decentralized finance (DeFi) protocol designed to provide liquidity and trading for NFTs by tokenizing them into ERC-20 tokens. Launched without any presale or founder pre-mine, NFT20 operates as a permissionless peer-to-peer protocol, allowing users to create pools for their NFTs or add them to existing pools. This process converts NFTs into fungible tokens that can be traded on decentralized exchanges like Uniswap and SushiSwap.
The protocol supports various functionalities, such as swapping NFTs for other NFTs within the same pool and creating liquidity pools for different NFT projects. NFT20 charges a 5% fee on tokenized NFT transactions, which are redistributed to MUSE token holders. The MUSE token serves as the governance token for the protocol, enabling holders to participate in decision-making processes and receive a portion of the transaction fees collected by the platform.
NFT20 aims to bridge the gap between DeFi and NFTs, offering financial utility through fractionalization and token representation linked to DEX-based liquidity pools. This approach allows users to gain exposure to digital art collections and other NFT assets without purchasing individual pieces.