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Aavegotchi: when Japanese Kawaii meets DeFi

When I was a kid, Tamagotchis were a thing. Every kid had one of those little beeping devices in their pocket and tried to keep their virtual pets alive and sometimes even grow a virtual pet family.

Fast forward to 2021, we’ve seen the massive explosion of NFTs and DeFi growing to capture the attention of world-famous investors like Mark Cuban. One of the leading DeFi protocols in the category of lending and borrowing is the Aave protocol. It’s grown to occupy consistently one of the top spots on Defi Pulse and dApp radar and has locked in more than 10 billion in value.

The Aave team continues building with the latest advance into DeFi being their NFT-game loosely based on the once-popular virtual pets from Japan: Aavegotchi. Since being first announced in 2018 as a project to gamify the DeFi experience, Aavegotchi has since grown into a popular DeFi platform, especially for users already benefitting from Aave.

Within the game, players will watch over their Aavegotchi ghosts. Each Aavegotchi ghost is an NFT with a rarity depending on 3 attributes:

  • collateral stake: each Aavegotchi ghost is backed by ERC-20 collateral deposited into Aave: aTokens such as aDAI. The collateral will, over time, generate yield as it continues being active in the lending protocol. Therefore the amount of aTokens backing an Aavegotchi will increase over time.
  • Traits: some of the traits are randomly assigned during the generation of the ghost, and others depend on the way users interact with their ghost.
  • Wearables: Similar to other NFT games involving virtual characters, owners of Aavegotchi can dress it in the latest fashion or buy wearables to enhance not only the visual impression of their ghosts. However, it’s worth noting that not every Aavegotchi can wear all wearables.

Players investing a lot of time and money into their ghosts can expect them to become rarer and therefore valuable. Likewise, lack of interaction with one's ghost can harm its value and uniqueness. This makes Aavegotchi more interesting than other NFTs, where rarity is fixed from the beginning and can not be influenced. Players who spend time and foster their Ghost can expect rewards from it and don’t just have to rely on speculation to increase market value.

By playing minigames inside the Aavegotchi realm, a 2D pixelated metaverse, or participating in the Aavegotchi DAO, players can earn the platform's token: GHST.

GHST is the utility token of the project and can be used to finance purchases of Aavegotchis, wearables and to vote in governance.

Once the Aavegotchi DAO 2.0 is implemented, a combination of Aavegotchi ownership and holding GHST tokens might be required to participate to guarantee the right incentives.

By gamifying the DeFi experience, Aave makes DeFi more fun and potentially more accessible to people who’ve not yet gone down the yield farming rabbit hole.

To purchase an Aavegotchi, traders can either try their luck on the bazaar or connect with a portal. A portal is a gateway between Aavegotchi and the “real-world” and only opens every few months.

When trying to summon an Aavegotchi ghost, traders must first stake a required amount of collateral that gives the ghosts their intrinsic value. Then they receive their Ghost and can play with it or mine its rarity to receive GHST tokens.

GHST is now trading on Exchange with USDT and BTC pairs.



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Naomi Oba

Writer in Crypto — passionate about financial education, blockchain, books, and food.