Minting
NFTflow introduces a new minting interface that allows you to easily mint a liquid ERC20 token from your NFT!
Why mint an NFT?
By adding your NFT to an NFTflow vault you mint an ERC-20 token (vToken) that has a 1:1 claim on a random NFT inside the vault.
Unlike a non-fungible token (NFT), an ERC-20 is fungible (all tokens are the same) and this allows it to be:
Instantly sold at an AMM (like Sushiswap)
Pooled in an AMM to earn trading fees
Staking
Used as collateral to borrow stablecoins
vTokens can be used to redeem a random vault NFT at any time.
Minting Step-by-step
Choose your vault
The initial mint view shows all the current NFTflow Vaults that you are able to mint into based on the contents of your connected wallet. In this example we're going to select the Avastr vault.
Selecting NFTs
Choose the NFTs from your wallet that you would like to mint to the vault. Remember, the vaults are often floor vaults and minting a higher value NFT will provide the same result as a lower value NFT from the collection.
Mint Basket
The mint basket will show you the NFTs you have selected, their approval status, mint fee and the number of tokens you will recieve after minting.
Although not shown in the screenshot below, you will sometimes need to "Approve" the NFTs to be minted into the Vault. Once Approved, the "Mint AVASTR" (or relevant NFT name) will appear and you can complete the minting process.
Approval
Your NFTs will need to be approved for use by the NFTflow contract before they can be minted into an ERC-20. To approve all your NFTs in this contract (i.e. the Wrapped Punks contract), click "Approve all".
Mint fee & Tokens received
The mint fee is new in v2 and will be distributed 100% to the liquidity providers. The fee is set to a default of 5%, however during the vault creation process this can be changed to any value. Once the vault is published, only the DAO is able to update the mint fees via a governance vote.
With a 5% mint fee, each NFT minted will result in the distribution of 0.95 vTokens (in this case AVASTR tokens) with the remainder distributed to the liquidity providers.
Minting
With your NFTs approved and your mint value confirmed, click the "Mint" button to generate your vTokens. Each NFT will return a single vToken, minus the mint fee.
For example, minting 2 Avastars to the Avastar vault will return 1.9 AVASTR ERC-20 tokens.
It is important to mint your NFT to the appropriate vault. Do not mint high value NFTs (i.e. a Avastar Rank 70) to a lower value vault (i.e. AVASTR).
Bypass Mint Fee's with Zaps
To encourage more liquidity for the vaults we allow users to avoid paying the mint fee if they choose to stake liquidity for a minimum of 48 hours.
Below shows the two options
5% mint fee and get back 0.95 vTokens
0% mint fee and get back 1 vToken
Choosing the Mint & Stake option requires an additional confirmation step, also shown below. This provides an overview of the number of tokens you are pairing, and the amount of ETH you need to pair for the pool.
Pool share — the share of the fee's earned on this vault that you will get each block. In this case, it is 50% of the fee distribution.
Mint fee — the mint fee is waived for staking your liquidity for 48 hours.
Lock time — the length of time your position will be locked. After 48 hours you can unstake and withdraw your liquidity.
Remember that if you already have a position on the vault your entire position will be locked for the 48 hours, not just the amount you are zapping on this process. This does not affect any other positions you might have in other vaults on NFTflow.
Once you have confirmed the Mint & Stake you can view the Staking page to see your positions, and the time left on your locked positions.
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