CryptoKitties Index funds are now available
In this blogpost, we will run through the new Cryptokitties NFT index funds which were recently released by the NFTX DAO.
In this blogpost we will run through the new Cryptokitties NFT index funds which were recently released by the NFTX DAO. We’ll take a look at the project these NFTs originate from, look into each individual fund and round up with a list of contract addresses and links to other resources.
NFTX is a platform for making ERC20 tokens that are backed by NFTs. 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 NFTs such as CryptoPunks, Axies, CryptoKitties, and Avastars, right from a decentralized exchange.
Let’s get started!
What are Cryptokitties?
CryptoKitties is a game on Ethereum developed by Canadian studio Axiom Zen, later spun out to Dapper Labs, that allows players to purchase, collect, breed and sell virtual cats.
It is one of the earliest attempts to deploy blockchain technology for recreation and leisure.
The Cryptokitties Funds Explained
With this launch, we have bootstrapped a total of 2 Crypokitties NFT funds, based on specific traits of the underlying NFTs.
Below we will go over each individual fund and see how they are different from each other.
$KITTY-GEN-0
Kitty-Gen-0 is a single fund token, which is 1:1 backed by Cryptokitties NFTs that originate from generation 0
Type: Single Fund
Portfolio Balance: 1:1 backed by NFT
SushiSwap Pair: https://app.sushi.com/token/0x8712A5580995a1b0E10856e8C3E26B14C1CDF7b6
Contract Address: 0x8712A5580995a1b0E10856e8C3E26B14C1CDF7b6
Fund on NFTX.org: https://nftx.org/#/fund/7
$KITTY-GEN-0-F
Kitty-Gen-0-F is a single fund token, which is 1:1 backed by Cryptokitties NFTs that originate from generation 0 ánd have a fast cooldown
Type: Single Fund
Portfolio Balance: 1:1 backed by NFT
SushiSwap Pair: https://app.sushi.com/token/0xc4bf60B93ac60dB9A45AD232368d50de0A354849
Contract Address: 0xc4bf60B93ac60dB9A45AD232368d50de0A354849
Fund on NFTX.org: https://nftx.org/#/fund/8
How to become a liquidity provider for Cryptokitties funds
Want to become a liquidity provider for one or several of the Cryptokitties Index funds but don’t know where to start? Here’s how you can:
Getting started
To get started, the first thing you will have to do is supply one (or multiple) Kitty NFTs to one of the index funds listed above. You can skip this step if you’ve bought single fund tokens from an exchange.
If you haven’t and want to use your own NFT as collateral, follow through with the tutorial below. Be aware that supplying your NFT as collateral mixes them with all other similar NFTs in that fund, making it a possibility that you will not be able to redeem the exact NFT when you redeem your fund token later. This is caused by the randomness associated with redeeming an NFT out of a fund.
Note: Kitties, as opposed to Cryptopunks shown in the tutorial below, do not have to be wrapped before being used to mint a fund token.
How to add liquidity on an exchange?
After successfully going through minting your index fund tokens by following the tutorial above, you will be ready to become a liquidity provider on an AMM (Automated Market Maker) such as SushiSwap.
The process of becoming a liquidity provider is fairly simple. It requires you to provide your fund token, in combination with a second currency, to the liquidity pool of an exchange. As NFTX pairs are favored by the DAO, we take $NFTX as an example.
Taking SushiSwap as an example, you can provide liquidity by going to the Sushiswap Pair page and click on the +liquidity button on the right side of the page.
Redeeming Cryptokitties from the index funds
When you want to take the opposite route, and take NFTs out of one of the index funds, you can do so by redeeming your fund token on NFTX.org.
Watch the video tutorial below where ChopChop walks you through the entire process.
That’s it for today!