NFTX & PUNK now available on Uniswap

NFTX Token Address : 0x87d73e916d7057945c9bcd8cdd94e42a6f47f776

NFTX/ETH Uniswap Pair Address : https://app.uniswap.org/#/swap?outputCurrency=0x87d73e916d7057945c9bcd8cdd94e42a6f47f776

NFTX is a platform for making ERC20 tokens that are backed by NFT collectibles. These tokens are called funds, and (like all ERC20s) they are fungible and composable. With NFTX, it is possible to create and trade funds based on your favorite collectibles such as CryptoPunks, Axies, CryptoKitties, and Avastars, right from a DEX like Uniswap.

NFTX tokens that were received during the community raise are unlocked at 12:00 PST (20:00 GMT). An NFTX/ETH pool will be created on Uniswap (in the minutes following the unlock) at a starting price of 40 NFTX per 1 ETH. This pool will begin with 30,000 NFTX and 750 ETH.

The first NFT-backed index fund, PUNK, has also been launched.

In other news, the PUNK token supply was increased to 25 last night, and a PUNK/ETH pool was created on Uniswap which can be viewed here. Please continue reading if you are interested to learn about how NFTX works, and how exactly the PUNK index fund was created. If you are too impatient to continue reading, just know that there is no reason to “ape into” PUNK. It is simply an index fund which offers exposure to CryptoPunk NFTs.

There are two types of funds on NFTX:

D1 funds have a 1:1 backing between a single NFT contract and an ERC20 contract. For example, if Alice owns 2 PUNK-ZOMBIE, that means she can redeem exactly two random zombie CryptoPunks at any moment. Another example would be Alice owning 1 AXIE-MYSTIC-2 or 1 AVASTAR-BASIC, giving her the ability to redeem one random

Axie with two Mystic parts, or one random Avastar. D1 Funds can be minted/redeemed on nftx.org or traded on balancer.

D2 funds are Balancer pools which combine D1 funds. For example, PUNK is a D2 fund which combines five different D1 CryptoPunk input funds (PUNK-BASIC, PUNK-FEMALE, PUNK-ATTR-4, PUNK-ATTR-5 & PUNK-ZOMBIE). The point of this is to offer more diverse exposure without requiring users to hold multiple tokens.

PUNK Explained

Since all five of the D1 CryptoPunk funds are used as inputs to the D2 PUNK token, we have also given them each their own D1/ETH Balancer pool to help increase liquidity. Below are the links to each of these D1/ETH pools:

-PUNK-BASIC/ETH
-PUNK-FEMALE/ETH
-PUNK-ATTR-4/ETH
-PUNK-ATTR-5/ETH
-PUNK-ZOMBIE/ETH

The next step in creating the D2 PUNK fund was to combine all five of the D1 CryptoPunk funds into a single Balancer pool. By doing so, we also create a BPT (Balancer pool token) which, in essence, is a CryptoPunk index fund because it grants equal ownership to all five of the D1 funds by holding it.

-PUNK is a token that wraps PUNK-CORE.

-The PUNK token fund can be viewed here

-PUNK-CORE is a BPT (balancer pool token) that combines:
-(20%) PUNK-BASIC
-(20%) PUNK-FEMALE
-(20%) PUNK-ATTR-4
-(20%) PUNK-ATTR-5
-(20%) PUNK-ZOMBIE

Although prices will now fluctuate, at creation each fund had the following price:

-PUNK-BASIC — 5 ETH
-PUNK-FEMALE — 6 ETH
-PUNK-ATTR-4 — 6 ETH
-PUNK-ATTR-5 — 20 ETH
-PUNK-ZOMBIE — 83 ETH

Since the average of these numbers is 24, we decided to set the PUNK fund to begin at 24 ETH. And since PUNK has 20% in each of those 5 funds, that means it has 20% of 24 ETH in each fund (i.e. 4.8 ETH). By dividing 4.8 by each of the prices, we can then determine how much of each underlying fund 1 PUNK has inside of it. For example, with 4.8 ETH invested in PUNK-BASIC, that means we own 4.8/5 (or 0.96) PUNK-BASIC by owning 1 PUNK. This means, upon launch, each PUNK token contains:

-0.96 PUNK-BASIC
-0.8 PUNK-FEMALE
-0.8 PUNK-ATTR-4
-0.24 PUNK-ATTR-5
-0.06 PUNK-ZOMBIE

The process of redeeming a PUNK token will mean first unwrapping to get PUNK-CORE, and then returning PUNK-CORE to Balancer to get each of the underlying D1 funds. It is already possible to do this but it involves interacting with the NFTX smart contract directly.

In the coming week we will be upgrading the NFTX frontend to make this process more straightforward. In the meantime we remind people that there is no reason to “ape into” PUNK—at the end of the day, owning PUNK is just another way to invest in CryptoPunks.

Treasury cost for launching Punk D1 funds

To launch the Punk funds these were the costs associated:

- 375 ETH + Approx 10 Eth for Gas
- 28.96 Punk Basic
- 24.13 Punk Female
- 24.13 Punk Attr4
- 7.24 Punk Attr5
- 1.75 Punk Zombie

Future Plans

The current plan is to roll out new fund pools one at a time, at a rate of about 2-3 per week, until we are finished launching all six (PUNK/ETH, AXIE/ETH, GLYPH/ETH, AVASTR/ETH, KITTY/ETH, JOY/ETH). Discussion about which poll to launch next and how much ETH to allocate will likely begin tomorrow, on Jan 6th.

Contract addresses for Uniswap pairs

PUNK/ETH Uniswap Pair Address : 0x66c8ce086cfefb0f227a3f37ccb267f62636796f

NFTX/ETH Uniswap Pair Address : https://app.uniswap.org/#/swap?outputCurrency=0x87d73e916d7057945c9bcd8cdd94e42a6f47f776

Contract address for NFTX and PUNK D1/D2 Funds
NFTX : 0x87d73e916d7057945c9bcd8cdd94e42a6f47f776

PUNK-Top-level (D2) : 0x9cea2ed9e47059260c97d697f82b8a14efa61ea5

PUNK-BASIC Input (D1) : 0x69BbE2FA02b4D90A944fF328663667DC32786385

PUNK-FEMALE Input (D1) : 0x27Ffed7E5926Fb2795fC85aAab558243F280A8a2

PUNK-ATTR-4 Input (D1) : 0x49706a576bb823cdE3180C930F9947d59e2deD4D

PUNK-ATTR-5 Input (D1) : 0xAB9c92A9337A1494C6D545E48187Fa37144403c8

PUNK-ZOMBIE Input (D1) : 0xF18ade29a225fAa555e475eE01F9Eb66eb4a3a74