Introducing WOWswap NFT — Trade the Most Popular NFTs with Leverage
Can’t afford Cryptopunks and Bored Apes but still want to FOMO in?
You don’t really care about the 🖼 and just want to speculate 📈📉🚀🌕?
Life’s good 🥂 and you have some ETH to spare?
Then you will love the WOWswap NFT Version!
You can now invest in the most popular NFT collections with up-to 5X leverage. WOWswap NFT is live on Ethereum blockchain.
Moreover, you don’t have to buy a whole art piece — via WOWswap you can invest any amount of ETH or USDC in digital art.
Wait, what? 😮
Well, today WOWswap protocol launched on Ethereum blockchain providing leveraged trading for 6 NFT index tokens:
- PUNK (an index token for CryptoPunks)
- BAYC (an index token for Bored Ape Yacht Club)
- PURR (an index token for Purrnelopes Country Club)
- GLYPTH (an index token for Autoglyphs)
- MEEB (an index token for Meebits)
- COOL (an index token for Cool Cats)
An NFT index token tracks the floor price of its NFT collection, so by purchasing this token you can get exposure to the price of the collection.
NFT index tokens are ERC-20 tokens minted by NFTX.org for users who deposit NFTs to their NFT vaults. For example, if you have a Cool Cat NFT you can deposit it to a vault on NFTX.org and get 1 fungible COOL token in return, which is fungible (meaning you can buy a fraction of the token, like 0.011 COOL).
Learn more how fractionalization works with this Coingecko guide. https://www.coingecko.com/buzz/fractionalized-nft
You can trade this COOL token and you can also create a liquidity pool on an AMM so that others can trade it. All NFTX fractionalized NFTs are tradable on Sushiswap. Alternatively, if you don’t have a Cool Cat NFT, you can buy 1 COOL token from the market and redeem it for 1 Cool Cat NFT on NFTX.org.
If you are redeeming an index token for the underlying NFT you can’t choose a specific NFT — you will get a random NFT from the vault. Likewise, if you deposit your NFT to a NFTX vault, and later try to get it back by redeeming an index token — most likely you will get back a different NFT from the same collection. This is the reason why NFT vaults accumulate cheapest (most common) NFTs from every collection, and index tokens track collections’ price floors.
However, beware that fractionalized NFT tokens bought on WOWswap cannot be redeemed for the NFT by the users themselves. When you trade on WOWswap, you will receive a proxy-NFT token instead which represents your leverage position.
How does it work?
When you buy a token with leverage on WOWSwap, you finance only a portion of the purchase with your own capital 💵 — the rest of the funds you borrow from a liquidity pool🏊♂️. Anyone can deposit USDC to the liquidity pools on Ethereum and earn interest on it.
After you complete a swap you will get “proxy-tokens”, which are pegged 1:1 to real tokens held by WOW smart contract 🤓on your behalf. Proxy-tokens are needed for the protocol to guarantee the repayment of your loan once you sell proxy-tokens back for USDC: the protocol will change proxy-tokens to real tokens, exchange real tokens for USDC on Sushiswap exchange, repay the loan to the liquidity pool and transfer the rest of the funds to you 🎉
For a detailed explanation how to use WOWswap, please, check the article below:
Right now you can go to wowswap.io to trade NFTs on Ethereum . To switch the network from BSC to Polygon or Ethereum, simply click the network button at the top right corner. Make sure the correct network is selected on Metamask.