Can I use my custom ERC20 token to sell NFTs?

NFT
1

Selling NFTs with a custom ERC20 token

I’m working on a website where people can mint NFTs. Most sites I’ve seen use ETH for transactions on Ethereum. But I was wondering if it’s possible to use my own ERC20 token instead.

Has anyone tried this before? Are there any technical challenges I should be aware of? I’m not sure if smart contracts can handle this kind of setup.

contract MyNFT is ERC721 {
    IERC20 public paymentToken;

    constructor(address _paymentToken) ERC721("MyNFT", "MNFT") {
        paymentToken = IERC20(_paymentToken);
    }

    function mint(uint256 tokenId) public {
        // How to implement payment with custom ERC20?
    }
}

Any advice or examples would be really helpful. Thanks!

2

Yes, it’s absolutely possible to use your custom ERC20 token for NFT transactions. I’ve implemented this in a recent project. The key is to modify your mint function to accept and transfer the ERC20 tokens.

Here’s a basic implementation:

function mint(uint256 tokenId, uint256 price) public {
    require(paymentToken.transferFrom(msg.sender, address(this), price), "Transfer failed");
    _safeMint(msg.sender, tokenId);
}

Make sure to set an appropriate allowance for your contract to spend the user’s tokens. Also, consider adding a function to withdraw the collected ERC20 tokens. One challenge to be aware of is liquidity. If your token isn’t widely traded, users might find it difficult to acquire. Consider providing a swap function or partnering with a DEX to ensure accessibility.

3

ya, ur token works fine for nft sales if the contract uses transferFrom correctly. make sure liquidity is sorted so ppl can get the token. good luck wit ur project!