NFT20 is a permissionless p2p protocol to tokenize NFTs and make them tradable on DEXs.
How NFT DEX Works
NFT20 allows users to receive ERC20 tokens representing NFT projects by depositing their NFTs to pools on the NFT20 DEX. When you add your NFT to the NFT20 DEX, you deposit your NFT (e.g., Doki Doki Gachapon) to the corresponding NFT project pool (e.g., the DokiDoki Finance pool), and the NFT20 Factory creates an ERC20 token representing that NFT project, giving you 100 such tokens for each NFT you deposit If you do not yet see an NFT pool for your NFT, you can always create a pool by depositing your NFT.
ERC721 and ERC1155 compliant NFT pools are currently supported.
The NFTs in the respective pools can be withdrawn at any time by any user who has depositing 100 matching NFT tokens. The user then selects which NFT from the pool is available for withdrawal. This feature makes NFT20 DEXnot only a trading mechanism but also an NFT swapping mechanism.
