The NYX20 protocol offers NFT liquidity pools to help developers build the next generation of NFT apps. NYX20 is a permissionless p2p protocol to tokenize NFTs and make them tradable on decentralized exchanges such as Traderjoe and Pangolin.
Anyone with an NFT or NFT collection can create a new pool or add his NFT to an existing pool and get ERC20 Token representatives 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!
One of main problem with NFTs is that there is no liquidity and when there is no demand, the floor price can reach very low levels. Due to the lack of liquidity, many projects have come to the point of extinction, and some have even disappeared.
The goal of NYX20 is to provide project owners, collectors, and investors a better way to trade and create a value for NFT tokens (ERC721 and ERC1155) by creating ERC20 representatives of NFT projects using the NYX20 dex.
How It Works
NYX Protocol allows users to receive ERC20 tokens representing NFT projects by depositing their NFTs into pools on the NYX20 dex. When you add your NFT to the NYX20 dex, you will deposit your NFT (e.g. your Smol Joe) into the respective NFT project pool (e.g. the Smol Joe pool), and the NYX Factory will create an ERC20 token representation of that NFT project, giving you 50 of these tokens for each NFT you deposit. If you don’t see an NFT pool yet for your NFT, you can always create a pool by depositing your NFT.