Would you like to somehow get these NFT fractions out into the world? If so, some popular options to do this include, but are not limited to:
- Sending them to friends to split and share ownership of an NFT
- Airdropping them to community members or owners of certain tokens
- Providing liquidity to a decentralized exchange (DEX)
Many folks may be unfamiliar with the last option, so if you’d like to allow people to use other tokens to buy fractions of the NFT, here’s how you can do that:
Provide liquidity on a DEX
Begin by heading to your vault’s page on fractional.art and also loading either https://app.uniswap.org/#/pool or https://app.sushi.com/pool in a separate window to access the ability to make a new pool.
- Add your token to Metamask
2. Go to Etherscan to get your contract address
3. Copy the contract address
4. Select ‘Pool’ and then create a new position on Sushi.com or Uniswap.org. In this example, we’re using Uniswap v3.
5. Click “Select Token”, paste the contract address from step 3 to import your token
5. Set up your pool. Here you will need to select a fee tier (generally 1% is recommended), then decide on a price for your new token in ETH. This really is a case-by-case thing that cannot be standardized. You will also need to decide on the range in which you provide liquidity. Based on your answer here you may need to provide one or both assets to the pool.
Below is an example pool setup where HOODIE tokens are 0.0131318 ETH. The price range provided is 0.013 to 0.01518. The min price should be 1% or less than the current floor when setting up your initial liquidity pool. This allows the pool to stay in range and allows others to buy into your liquidity.
NOTE: Gas fees can be as high as $300–$2000 to set up a liquidity pool
If you are receiving an ‘insufficient liquidity’ error, you may need to provide a very small amount of ETH (<0.01) in addition to the fractions in the pool
6. Approve and then deploy! Now you have liquidity for people to buy and collect the fractions
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Disclaimer: The Fractional Token Company, its officers, team, and community representatives are not registered investment advisors. All opinions shared on Twitter, Discord, or through other public channels are those of the respective individuals alone. Nothing discussed in this article should be relied upon for investment decisions nor is it investment advice. Fractions (fractional ownership tokens) are not intended to be investment contracts and The Fractional Token Company is not responsible for how curators choose to market their NFTs. Similarly, The Fractional Token Company does not create, handle, or manage the intermediary platforms, or networks through which fractions can be transferred, sold, or purchased. Publications from Fractional.art are solely for information and entertainment purposes only. Please consult and work directly with tax, legal, financial, and investment professionals before making any fractional creation, transferring, and purchasing decisions.