An overview of the Aavegotchi DeFi and NFT platform

Sitting at the forefront of DeFi and NFT technology, Aavegotchi represents a prime example of how the two Web3 staples can innovate the gaming industry. Read on to find out how the platform is revolutionizing the space with a skillful application of these two aspects of blockchain-based technology.

DeFi and NFTs represent remarkable game changers in their respective intertwined niches. DeFi ushers in the financial revolution that swept the corporate worlds with its economic potential. It introduces a borderless financial system without third-party interference, restrictions and downtime. Essentially redefining the global digital economy by addressing the traditional loopholes in the global financial system.

NFTs, on the other hand, revolutionized the artistic space with their tokenization of digital content. It expands the scope of the art industry by eliminating geographic limitations through ubiquitous blockchain technology. Traditionally, the trade in artistic pieces usually goes unnoticed or is carried out privately due to the high caliber of those who can afford them. But with NFTs, there are affordable works of art for anyone and everyone, traded publicly. Not only this, NFTs extend beyond art collections as they also include unique digital objects such as animations, music, virtual lands, in-game collectibles and much more with varying use cases.

When two remarkable tools or projects merge, it usually results in amazing development beyond expectation. This is the case when DeFi and NFTs are integrated into a single project, Aavegotchi.

What is Aavegotchi?

Aavegotchis are DeFi-based NFTs built on the Ethereum network by Aave. They are pixelated ghost NFTs introduced by Pixelcraft Studios in September 2020. Aave means “ghost” in Finnish, which explains the ghost-themed NFTs. The team initially launched Aavegotchi on the Ethereum network, but it later expanded its compatibility to the Polygon network, which is more scalable and has cheaper fees.

The project began as a GameFi NFT platform, but later evolved into an ecosystem where players can play decentralized games, earn rewards and use their lands for various purposes. Basically, Aavegotchi allows owners to unlock access to the platform and participate in the ecosystem. So in March 2022, the team introduced a rental initiative to lower the barrier to entry for new members, therefore allowing them to play in the Gotchiverse using a loaned NFT.

How to get Aavegotchi?

• To obtain or claim an Aavegotchi means to summon it from the Nether realm through a portal. Potential players can obtain these fully tradable portals through timed auctions or ticket raffles. However, if these are terminated, players can obtain their portal on Baazaar (a secondary marketplace for the Aavegotchi ecosystem).

• After receiving a portal, the next step is to open it so the user can summon Aavegotchi. The portal opening takes place via the Polygon network through an authorized wallet transaction. Once opened, 10 different Aavegotchis with different random properties are presented. However, users can select only 1 and summon it from the Nether Realm to their wallet, while others will disappear.
• To summon an Aavegotchi, users must stake the required spirit power (security, aTokens, maTokens, or amTokens) into the portal. These tokens or spirit force can be bought on Aave or DEXs like Uniswap.

A quick overview of the different symbols

As mentioned earlier, Aavegotchi originally launched on the Ethereum network and later moved to Polygon. While still on the Ethereum network, Spirit Force (aka aTokens) were interest-based tokens from the Aave ecosystem. Due to high gas fees on the Ethereum network, Aavegotchi moved to the Polygon network, which has lower gas fees and faster transaction throughput.

Due to switching networks, aTokens will also be required on Polygon. This resulted in bridging Aave V2 aTokens from Ethereum to Polygon. The bridged aTokens are called maTokens. When the Aave protocol switched to the Polygon network for higher transaction throughput, the market maker’s liquidity pool on the Polygon network became known as amTokens.

You understand now, right?

aTokens are divided into stablecoins and cryptocurrencies. Stablecoins include DAI, USDC and USDT; stablecoins such as BUSD, GUSD, TUSD and USD will be added after DAO voting. The cryptocurrencies are AAVE, UNI, ETH, YFI and LINK, while BAT, REN, MANA, KNC, ENJ, WBTC, BAL, CRV, REP and SNX will be added later after reconciliation.

The base rarity of your preferred Aavegotchi determines its safety; the higher the base rarity score, the higher the security. The minimum security is 10 DAI, while the maximum is 1000 DAI.

• A rarity score of less than 450 attracts 10 DAI.
• Rarity scores greater than 450 but less than 525 attract 25 DAI.
• A rarity score greater than 526 but less than 580 attracts 100 DAI.
• A rarity score greater than 581 attracts 1000 DAI.

After claiming your Aavegotchi NFT, you can start using it to play and earn rewards, or you can sell it on marketplaces like Rarible or Baazaar.

Where do Aavegotchis get their value?

Like all NFTs, which are valued based on utility, an Aavegotchi is valued based on its intrinsic value and rarity.

The realistic valuation of an Aavegotchi is defined by its inmate security. If an Aavegotchi is staked with 100 DAI, it will be valued at 100 DAI along with what is earned from the lending pool with the staked DAI. Therefore, an Aavegotchi staked with 1000 DAI will have a higher value than one staked with 100 or 25 DAI. However, each Aavegotchi has its own value.

Rarity value

Aavegotchi’s rarity value is measured by calculating the rarity score of each Aavegotchi’s traits and associated wearables. Unlike most NFTs whose rarity is fixed, a mechanism called “Rarity farming” allows Aavegotchi’s rarity to be dynamic and increase as they upgrade and acquire more wearables and consumables.

Features and wearables

An NFT feature usually refers to the physical characteristics or characteristics and functionality of the particular NFT. Such is the case with the primary traits, which include randomly generated traits, Spirit Force trait modifiers, experience, affinity, level, and whereabouts.

Randomly Generated Traits (RGT)

The randomly generated traits are assigned to all Aavegotchis during the portal opening. RGTs include aggressiveness (AGG), energy (NRG), mischievousness (SPK), brain size (BRN), eye shape (EYS) and eye color (EYC). Each of these traits has its rarity value which is categorized into Common (50%), Uncommon (30%), Rare (16%) or Mythic (4%).

Spirit Force move modifiers

Remember that spirit power is collateral used to summon Aavegotchi from the Nether Kingdom. Spirit powers are none other than tokens (aTokens, maTokens, and amTokens), as explained earlier, but these tokens have their respective modifications on the properties of the Aavegotchis they are used to summon. Below is the effect of each token on Aavegotchi’s trait.

Kinship

Kinship is a function of the Aavegotchi’s sense of loyalty to its owner. This type of trait is not randomly assigned to Aavegotchis, but it starts at a neutral level of 50, decreases to zero (minimum), or increases to over 500. Using Aavegotchi every 12 hours gives you 1 affinity, but if you don’t use your Aavegotchi for 24 hours, you will lose 1 affinity.

Kinship is used in the Gotchiverse (Aavegotchi Metaverse) for alchemical channeling, the basic daily stipend that every Aavegotchi earns. The affinity level of each Aavegotchi determines how much it accumulates in the alchemy tokens (FUD, FOMO, ALPHA and KEK). The main revenues for channeling are 20 FUD, 10 FOMO, 5 ALPHA and 2 KEK.

Experience (XP)

Experience is a function of the activities each Aavegotchi has participated in. It is measured by XP, awarded to each Aavegotchi for playing unique mini-games, participating in events hosted on the ecosystem’s Discord channel, and voting in Aavegotchi’s DAO.

Level

Aavegotchi levels up as it earns more XP. At every third level, Aavegotchis will earn 1 Spirit point, which can be used to increase or decrease a specific attribute. The higher your Aavegotchi level, the more guilds it can join. Also, some wearables are only compatible with Aavegotchis at a certain level.

Haunting

Haunts refers to the group an Aavegotchi travels with from the Nether to the Ether realm. There are currently two haunts that also mark editions of Aavegotchis that exist. The first haunt has 10,000 portals through which Aavegotchis was summoned, while the second haunt has 15,000 portals. Each portal can only be used once to summon an Aavegotchi.

Each haunt has its exclusive spirit powers; hangout 1 has maETH, maLINK, maTUSD, maYFI and maUNI, while hangout 2 has amWETH, amWBTC and amMATIC.

Wearables

Wearables are ERC-998 standard tokens, an extension of the unique ERC-721 standard token for NFTs. These items are seen as subordinate NFTs in the Aavegotchi ecosystem because ERC-998 allows NFTs to own other NFTs and ERC-20 tokens (cryptocurrencies). They are none other than clothing or fashion accessories worn by Aavegotchi, and they have their respective rarity. As a result, users can buy wearables in Aavegotchi Baazaar with $GHST.

What is $GHST?

The $GHST token is Aavegotchi’s original token used to purchase various assets in the ecosystem, such as portals, collectibles, consumables, wearables, etc. It is also the governance token used by the DAO to vote in the ecosystem and can be staked.

According to CoinGecko, GHST ranks #432 with a market cap of $41,074,249 and a maximum access of 42,264,367 tokens. A GHST is currently valued at $1.01 med 40 657 004 $GHST in circulation. It recorded a record high of $2.88 on December 2, 2021, and a low of $0.43 on November 15, 2020.

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*All investment/financial opinions expressed by NFT Plazas are from personal research and experience of our site moderators and are intended as educational material only. Individuals are required to research all products before making any type of investment.

Technical writer, an enthusiast for all things blockchain and the decentralized world.