How Aavegotchi used GBM auctions to revolutionise their NFT distributions and marketplace since 2021
With over $52,000,000 in NFT sales, $6,000,000 distributed to bidders and 65,000 GBM auctions completed to date, our partnership with Aavegotchi stands as a testament to the power of collaboration in the blockchain space. We are proud to share how our groundbreaking Bid-to-Earn auction model turned Aavegotchi NFT drops into a fun, fair and exciting experience for their community, boosted revenues for Aavegotchi, and has now become a key component of Aavegotchi’s secondary marketplace.
The GBM auction model: A gamified approach to NFT trading
Since our inception, GBM has aimed to reinvent the traditional NFT trading landscape. We understood that the conventional fixed-price listing and the English auction model lacked engagement and excitement. To address this, we introduced the ‘Bid to Earn’ auction. Unlike traditional auctions, where only the highest bidder wins, our ‘Bid to Earn’ model rewards EVERY participant, regardless of their bid’s success. This gamified approach encourages active participation, and turns every sale into an exciting event where everyone goes home with something.
Aavegotchi: The perfect partner for empowering users
Aavegotchi is a DeFi-enabled NFT collectibles game developed by Pixelcraft Studios with a vibrant community. Aavegotchi combines Decentralized Finance (DeFi) and Non-Fungible Tokens (NFTs) to create a financially-incentivized gaming experience. When we crossed paths with Aavegotchi, we recognized a kindred spirit that shared our vision of empowering users and revolutionizing the NFT experience. We saw a lot of potential in collaborating with Aaevgotchi to create an even more rewarding and engaging ecosystem for all participants.
Aavegotchi’s desire to provide fair and even NFT distribution to their community
Aavegotchi’s first NFT drop in March 2021 was initiated through the most common form of NFT distribution: The first-come, first served, fixed-price method. Although Aavegotchi saw great success as the drop sold out in only a few minutes, it gave an unfair advantage to tech-savvy users and bots: As a result, many in the community were left out as bots snatched items and users were forced to purchase these NFTs on the secondary market at inflated prices, which was also a big opportunity cost for Aavegotchi. The Aavegotchi team were therefore on the lookout for a better method of distributing NFTs, and one that would be popular and drive excitement around their drops within their community. This is where GBM stepped in to provide a much-needed solution.
Raising Revenue and Fostering Growth through Bid to Earn Auctions
The integration of GBM bid-to-earn auctions for Aavegotchi’s primary sales led to a surge in revenues for Aavegotchi: +158% in their first GBM drop compared to their fixed-price distribution! GBM auctions also attracted a fresh wave of users eager to participate in the experience and allowed Aavegotchi to incentivise their community to continue playing, engaging and growing. Aavegotchi have used GBM for all their NFT releases ever since.
Opening up bid-to-earn auctions to everyone in the Aavegottchi community.
In December 2022, GBM was also integrated into Aavegotchi’s secondary market so that all players can create their own GBM auction to resell their Aavegotchi assets. Over 16,000 GBM auctions have been created by Aavegotci’s community to date, with over 2,500,000 GHST ($2,4M) in bidding volume and more than 57,000 GHST distributed to losing bidders. The addition of GBM auction to Aavegotchi’s secondary market has helped bring better price discovery to their ecosystem, and the increased engagement and trading activity not only brought more value to their platform but has also contributed to Aavegotchi’s market leadership in the NFT gaming space.
Rewarding Community: Inclusivity and Recognition
We have always believed in the power of community. Our ‘Bid to Earn’ auction model ensures that every participant, regardless of their bid’s success, receives a share of the reward pool. This inclusivity has been met with overwhelming appreciation from partners like Aavegotchi and their users, who feel recognised and rewarded for their active engagement. You only need to look at Twitter to see countless examples of how GBM Auctions have brought exciting and rewarding experiences to the Aavegotchi community.
What comes next?
By leveraging our innovative auction mechanics, Aavegotchi’s NFTs gained greater exposure, attracted a broader audience and strengthened the value of their assets.
The ‘Bid to Earn’ model has transformed NFT trading into a rewarding and inclusive experience, our partnership with Aavegotchi has fueled growth, raised revenue, and empowered users. There have been over 65,000 GBM auctions of Aavegotchi assets to date, with no sign of a slowdown. As we look ahead, we are excited to continue pushing the boundaries of NFT trading and collaborating with more visionary projects that share our passion for empowering users in the blockchain space.
The huge success that Aavegotchi experienced after switching from a first-come first-served distribution model to using GBM has made waves, and Aavegotchi have decided to use GBM for all their future NFT sales. The Aavegotchi and GBM teams continue to work together to bring better and fairer drops to their community, so stay tuned!
If you want to read more about our partnership with Aavegotchi, check out our case study available here: https://www.gbm.auction/case-studies/aavegotchi
You can also follow us on Twitter at: https://twitter.com/GBMauction and follow Aavegotchi at: https://twitter.com/aavegotchi
