How it works?
To wrap an NFT with Universal Wrapper, the ERC721 collection of that NFT must first be enabled for wrapping. Any collection can be enabled for any Wrap.
After an ERC721 collection is enabled for wrapping, an identical collection is minted in the DN404 contract. (NFTs in the DN404 contract are minted starting from ID 1 as people wrap their ERC721 NFTs.)
Once a collection is enabled, anyone who owns ERC721 NFTs from that collection can wrap their NFTs.
After wrapping an NFT, your original NFT is taken from you and locked in the vault wallet. You are given a DN404 NFT minted on the DN404 side in place of this NFT. (DN404 NFTs are distributed according to the minting order. For example, if you wrap your MoonPets 5315 NFT and a total of 15 NFTs from the MoonPets collection are wrapped, this means NFTs in the DN404 side are minted from ID 1 to ID 15. Since the next NFT to be wrapped will have ID 16, you will receive DN404 MoonPet with ID 16.)
You can add the token of your new DN404 NFT to your wallet and use it in Dex applications. At this point, you should understand the operation of DN404. When you trade 1 DN404 token, DN404 takes 1 NFT from you and gives you a different NFT in return. Therefore, if you trade your DN404 MoonPet with ID 16 and then get it back, you will receive a DN404 MoonPet NFT with a different ID.
You can use the unwrap process to convert your DN404 MoonPet NFT back to an ERC721 NFT, but one of the NFTs locked in the vault wallet will be given to you randomly. Be aware of this and consider the potential risks when performing Wrap operations.
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