For every NFT deposited in its corresponding NFT20 pool, the contract will create 100 ERC20 tokens that belong to that NFT project. 95 tokens will go to you and 5 is the DEX fee that gets equally distributed to $MUSE token holders.
Those tokens have several use cases right away:
- If there is enough liquidity for those tokens on Uniswap, you can go ahead and sell them for profit.
- If a Dutch auction is active for a higher value NFT, you can bid on the auction with those tokens and thus exchange some of your lower value NFTs for higher value ones.
- You can exchange 100 tokens for any of the NFTs available on the NFT20 pool, thus swapping NFTs for NFTs in a permissionless way.
If you believe your NFT is worth more than 100 tokens, you can opt to create a Dutch auction and set your own price (you can cancel the auction at any time), the bids and final payment will be in the token of that pool.