What is Aavegotchi?
Too young to remember what Tamagotchis are, but too old to play with one? Say hello to your new little friend: Aavegotchi. Unlike a Tamagotchi, the Gotchis don’t starve to death if you don’t feed them because they are ghosts. Actually, they are more than that.
Gotchis are pet NFTs that grant you DeFi gains and bragging rights. Your friends may press ctrl c + ctrl v on your gloomy pets, but yields stay with their owner.
So what is the background of Aavegotchi? The game was developed by Pixelcraft Studios in 2020, way before the NFT hype picked up. As the name suggests, Aavegotchi was developed with help from Aave.
The two teams decided to create a synergy between the NFTs and Aave’s DeFi ecosystem. As a result, Aave has integrated Aavegotchi into its DeFi platform, allowing Aave users to stake their Aavegotchis and earn rewards in the form of AAVE tokens.
In case you were wondering about the safety of your yields with Aavegotchi, the answer lies with Aave. The underlying yield protocol for Aavegotchis is the same as on Aave. To this day, neither Aave nor Aavegotchi got hacked.
GHST is the primary utility token of the Aavegotchi ecosystem and is used to buy and sell goods within the Aavegotchi world, including Aavegotchis themselves. Another utility for GHST is to serve as the governance token for the AavegotchiDAO.
Currently, the AavegotchiDAO is in the transition process to full decentralization. This means Pixelcraft Studios are in charge of the general direction of the game, and GHST holders can only vote on their funds allocation. The next stage of decentralization will put GHST token holders in charge of adjusting the game mechanics such as adding new collaterals, deciding on their functions, and adding new wearables created by the community.
The final milestone for AavegotchiDAO is called "Oasis," and it will reward participants in the governance process. As of now, anyone can contribute with proposals out of their own volition. For those interested only in owning Aavegotchis, there are no requirements such as KYC.
How does Aavegotchi work?
Aavegotchis are NFTs that come with DeFi staking features on Aave. The protocol combines the digital pet concept in Tamagotchi with the yield earning opportunities on Aave. However, there is a lot more to be done with an Aavegotchi than holding it. Let's start with the basics!
Aavegotchi NFTs
Aavegotchis are ERC721 NFTs. Each Aavegotchi manages an escrow contract address that holds aTokens, an interest-generating ERC20 tokens from the Aave protocol.
Initially, Aavegotchis were minted by spending GHST to acquire Portals. Upon opening a Portal, the user has to choose one of the ten randomly generated Aavegotchis. The Aavegotchi can then be brought to life by staking aTokens.
Aavegotchis possess multiple traits that influence their rarity, their performance in mini-games, and the wearables they can equip. Some are generated randomly upon birth, and others depend on user interactions with the Aavegotchi.
Upon birth, every Aavegotchi is assigned several random trait values using the ChainLink VRF random number generator. Other traits such as kinship and experience are influenced by the users' interaction with the ecosystem. For example, Aavegotchi owners can participate in mini-games and level up their Aavegotchi.
In addition to managing the oTokens escrow, Aavegotchis can also incorporate NFT wearables. Not every wearable can be equipped by every Aavegotchi. Some wearables may be exclusively equipped by Aavegotchis staked with certain collaterals, those of a certain level, and those with certain traits. Some wearables can increase or decrease certain traits of an Aavegotchi.
For example, equipping a sword may slightly boost an Aavegotchi’s aggressiveness, whereas equipping a Bob Marley shirt may decrease its energy level.
If you go to the Aavegotchi Baazaar, chances are there is no portal for sale, meaning Aavegotchis can only be acquired from the secondary markets.
Minting new Aavegotchis can result in a high inflation of NFTs, which is why the AavegotchiDAO is in control of how many new NFTs are issued.
Haunts are akin to the concept of "Generation" in other NFT games. The initial Haunt when Aavegotchis launches on Mainnet will allow 10,000 Portals to be minted. Thereafter, the AavegotchiDAO can vote to create new Haunts, and can also vote to change the price (in GHST) of Portals in that Haunt.
Gotchi Vault
GotchiVault aims to be a fully decentralized, permissionless asset manager for the Aavegotchi ecosystem. With the GotchiVault, new and existing members of the Aavegotchi community can deposit their GHST and Aavegotchis into a permissionless contract, where these assets can be securely managed, with the goal to optimize GHST yield for all participants.
At the GotchiVault, users' assets are managed securely, on-chain, by six multi-sig of veterans and trusted Aavegotchi community members.
The vault can host GHST, Aavegotchis, and even Realm parcels. Once an Aavegotchi is in the Vault, a user can always withdraw the Aavegotchi if they want to play in a minigame, or run around the Gotchiverse.
Gotchiverse
The Gotchiverse transcends the Human Realm into the Ether Realm, a mysterious land populated by friendly ghosts. Players can own REALM parcels in the Gotchiverse and farm resources.
Owners of REALM parcels can employ their Aavegotchis (and those of others) to farm their REALM parcels, producing quantities of resources known as Gotchus Alchemica. These resources can be combined to create powerful structures known as Installations.
In this strange land, Aavegotchis battle lickquidators and earn Lickquidator Credits. Here's the catch, holders of Lickquidator Credits can play as lickquidators themselves and earn Alchemica.
Overall, the Gotchiverse is an engaging experience where users can play with their Aavegotchis and upgrade their Instalations, or the Aavegotchis.
GLTR Token
The primary utility of GAX Liquidity Token Reward (GLTR) is allowing players in the Gotchiverse to speed up the crafting and upgrading of their Installations by burning GLTR, allowing them to reach higher levels of the game faster.
GLTR also has a secondary utility, being the main token required for Wearable Crest auctions. Guilds will also have the choice to burn GLTR to speed up the time for their next Guild Channeling.
How to make money on Aavegotchi?
Aavegotchis are cute little NFTs that are imbued with an interest generating token. In some sense, owning an Aavegotchi implies holding oTokens that earn interest on Aave.
In order to play Aavegotchi, you will need some GHST and head to the Aavegotchi Baazaar. Here you have the option to buy an Aavegotchi, or mint one by buying Portals.
To claim an Aavegotchi from the portal, you need to stake the required amount of various aTokens (Spirit Force) to the portal. These aTokens can be acquired directly via Aave or decentralized exchanges like Uniswap. The staked assets provide each Gotchi with intrinsic value, in addition to its rarity value and market forces.
Aavegotchi Staking
Staking refers to locking up your cryptocurrency to serve as a validator to the blockchain in return for rewards. GHST token can be staked in the Staking Contract to earn FRENS token.
FRENS cannot be transferred as it serves as a raffle ticket to win Portals, Wearables, and land in the Gotchiverse Realm.
Here's how you stake GHST:
Go to aavegotchi.com and click “Stake GHST”
Input the amount of GHST you wish to stake in the single staking GHST area
Click “Stake”
Confirm the transaction through your wallet and you are done
While staking GHST isn't as lucrative as DeFi staking, it bears the promise of winning perks that can be sold or equipped to make a stronger Aavegotchi.
In addition to GHST staking, users can also stake GLTR tokens in order to speed up the crafting and upgrading their Installations. Again, this is an indirect way to make profits as the focus remains on enjoying the Aavegotchi game experience.
Here's how you stake GLTR:
Go to aavegotchi.com and click “Stake GLTR”
Click on the pools you are interested to LP in. The given tab will expand, showing a "View Pool" button
Deposit your tokens
Upon deposit, you will receive the corresponding LP tokens
Stake your LP tokens in the Aavegotchi Dapp
Receive your GLTR rewards every block!
Rarity Farming
To participate in Rarity Farming you must first obtain an Aavegotchi NFT. Once you have found your perfect fren, you will want to do everything you can to improve your Gotchi’s rarity, kinship, and XP.
Rarity Farming takes place over an eight week period. During this event, the rarest Aavegotchis across each of the three categories will receive a distribution of GHST rewards. Rarity farming rewards are distributed on a descending curve with top Aavegotchis receiving the highest rewards.
The proportion of rewards allocated to each category is decided by the AavegotchiDAO. As Aavegotchi evolves, more categories may be added. In order to fund Rarity Farming, 40% of all GHST spent on primary sales is redirected to the Rarity Farming rewards pool.
Rewards are distributed every two weeks during Rarity Farming, through onchain snapshots. After each snapshot, GHST rewards will appear in your Aavegotchi’s pocket. You can choose to leave the GHST in the pocket, or transfer it to your wallet.
Price Prediction for GHST: Can it hit $1000?
Buying and hodling GHST — the native token of Aavegotchi — is one way of potentially making money on Aavegotchi.
By looking at its current price, it’s natural to think about the chance of GHST hitting $1000 per token. This can happen sooner, or way in the future, and is determined by a couple of ever changing factors.
Let’s examine the potential growth of the GHST token by analyzing its tokenomics. GHST’s current market cap sits comfortably at ${MARKET_CAP}. With {CIRCULATING_SUPPLY} GHST tokens being in circulation today, that means a price of {PRICE} per GHST.
How did we come to that calculation? It’s quite easy, the price of an GHST token is equal to its current market cap divided by the number of tokens in circulation. Dividing ${MARKET_CAP} by {CIRCULATING_SUPPLY} gives us a result of {PRICE} for each GHST coin.
By changing the order in the simple formula above we can use it to calculate other things as well. This helps us a lot because we can deduce the market cap of GHST at different token prices. Then, we can use the result to compare it to the current state of the network and see what would be required for GHST to hit that price.
At a price of $1000 per token, that means the current market cap of GHST would equal ${{CIRCULATING_SUPPLY} * 1000}. Remember that we arrived at this number by multiplying the amount of circulating tokens by $1000.
Now let’s shift our attention to the fully diluted market cap.
Some blockchains may have their tokenomics built in a way that only a small percentage of tokens are circulating at the beginning. This can be misleading because we don’t have the full picture and only take into account the current number of coins released in the market.
The fully diluted market cap represents the total value of a coin if all tokens were in circulation. GHST’s whole supply of tokens is {MAX_SUPPLY - TOTAL_SUPPLY + CIRCULATING_SUPPLY} GHST which means that no more coins above that number will ever be created.
These tokens are not created at the discretion of a specific entity. They are created automatically by the network to reward different actors that keep it secure.
How does this impact the price of GHST? Taking into account the current price of an GHST token, that would result in a fully diluted market cap of ${MAX_SUPPLY - TOTAL_SUPPLY + CIRCULATING_SUPPLY * PRICE}. GHST coins that have been burned are not taken into consideration because they have been permanently removed from circulation.
Whether it seems gigantic or not, the number we came to above only takes into account the current price of an GHST token. Doing the same calculation but with a price of $1000 gives us a result of ${{MAX_SUPPLY - TOTAL_SUPPLY + CIRCULATING_SUPPLY} * 1000} for the GHST protocol fully diluted market cap.
These are all crucial details to know when calculating if GHST can reach the price of $1000 per token. If the diluted market capitalization is way too high, the token has little room left to grow. Blockchains in general have no cap on the value they can reach, whether that number seems possible it’s totally up to you.
The future of GHST depends solely on its growth as a network used by tens and hundreds of millions of users.
If you’re looking to add some GHST to your portfolio, the most trusted places to get some are Binance and Coinbase.
