How to use Nftfy
A step-by-step explanation
In the next section, you will be able to follow a step-by-step explanation about how the main processes of Nftfy work.
If you prefer, watch this video.
When you access, you will see two main buttons: Explore and Fractionalize. When you click on "Explore", you will be directed to our Marketplace, which is an environment that allows everyone to see the Fractions available for trading.
Nftfy's Marketplace
When you click on "Fractionalize", you will be able to visualize all the NFTs in your wallet.
NFTs in your wallet ready to be fractionalized.
Once you select one of them, you can check the NFT details and visualize some important information in this section, just as presented in the picture below.
In that way, after staking your NFT in the Smart Contracts and completing the Fractionalization protocol, you will receive one million Fractions of the referred NFT in your wallet. Before that, you will be asked to set up the Exit Price, by defining the cryptocurrency and the value desired. In the picture above, the Exit Price has been set at 10 ETH.
After confirming the operation and fractionalizing the NFT, you will be able to visualize your Fractions in the “Portfolio” section.
The "Portfolio" section allows you to visualize the Fractions in your wallet.
At this moment you can make either a Private or Public Offering to monetize your Fractions. For a Public Offering, you will be able to make your own Initial Dex Offering (IDO) by creating a Liquidity Bootstrapping Pool (LBP) to provide liquidity to your Fractions. In this version of our DApp, this process will be done outside Nftfy, by using Balancer protocol, but we are already developing the API to integrate this function inside Nftfy. This LBP creation process is completely explained below.
1- After the Fractionalization process, you will be able to see the Fractions' details as presented below.
2- Copy the Fractions' contract address.
3 - Make sure you have added your new ERC20s into your wallet by clicking on the Metamask symbol next to the Fractions' contract address.
4- Click on the “Add Liquidity” button and you will be directed to the Balancer protocol.
5- Click on the “Create a pool” option and select either a “Shared” or “Smart” pool option.
6- Choose the asset to be used as collateral to your Fractions. We highly recommend you use $NFTFY to participate in our incentive programs.
7- Click on the “Add token” button, change the asset by selecting it and then paste the contract address of your own Fractions.
8- Define the weights of each asset and the amount to be deposited in the pool.
9- Make sure the amount of the tokens does not exceed the balance. Click on “Setup proxy” and move on with the wallet's confirmation requirements.
You can check if your pool has been successfully created by clicking on the "Explore pools" button and paste your Fractions' contract address in the search field.
A few minutes after the operation is completed, you can visualize your pool in the “Pools” section inside Nftfy, and your Fractions will be available in our marketplace with their current price being defined according to the open market.
Some of the Fractions available in the Marketplace section.
From that moment, anyone will be able to buy and sell your Fractions in our Marketplace. They just need to select the desired one, and they will see a page with detailed information about the Fractions.
If the user clicks on “Trade Fractions”, a new modal will be open, allowing a swap transaction integrated with Balancer protocol. There they can choose the cryptocurrency and the amount desired to exchange for the Fractions. The same process is valid when the user wants to sell the Fractions – just need to click on the arrows to change the transaction.
If the user wants to buy the whole NFT (Redeem process), just click on the “Buy NFT” button, and then it will be possible to check the amount required to pay the Exit Price. If the user already has some Fractions of the NFT, he/she will only need to pay the remaining value of the Exit Price. The amount paid will be stored in our Smart Contract’s vault.
Once the user does the Redeem, all the other users who still hold Fractions of that NFT can be properly remunerated. In this process, all the remaining Fractions which were previous backed by the NFT are now backed by the amount stored in the Smart Contract’s vault. This process guarantees that all these Fractions are worth the maximum amount per Fraction (Exit Price).
From that moment, all the users who are still holding these Fractions can Claim a proportional amount of the value stored in the vault. In that way, all the participants are benefited and have their rights guaranteed by our Smart Contracts.
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