What is Aavegotchi: NFT Collectible Game Explained
Aavegotchi appeared as a DeFI and NFT-oriented project, which offers tokens with unique characteristics that can be used for staking. It can help shape the NFT market by introducing concepts combining DeFi and NFT and a gaming experience. If you are interested in Aavegotchi but need clarification on what it is, don’t worry. This article will cover all you need to know about this project.
Table of Contents
What is Aavegotchi?
Aavegotchi is an NFT game on the blockchain based on the Tamagotchi game. Aavegotchis are NFTs that you can purchase. Every Aavegotchi is unique and has special attributes. The more periodic the characteristics of an Aavegotchi, the more irregular and valuable it is.
Aspects of Aavegotchis can be continuously enhanced as you play the game. Depending on how much time and money users invest in their Aavegotchi, the more often it will be. It’s about promoting different interactions with their Aavegotchi. Users can pet it, put on new clothes, feed it or recreate mini-games with their Aavegotchi.
How Does Aavegotchi Work?
Aavegotchi works just like a Tamagotchi game but uses the blockchain and Aave-based protocol. Players can buy or earn Gotchis as NFTs with GHST tokens and “upgrade” their current avatars by playing mini-games, dressing them up, and caring for them. Gotchis become more valuable as NFTs, depending on how much time and money players spend on them. Based on their activities, players can also earn GHST.
Rarity farming seasons are regularly organized and updated to reward users based on their experience, uniqueness, rarity, and loyalty to their Gotchi. In each round of rarity farming, users receive rewards based on transparent rankings. Moreover, Gotchis have value as in-game NFT collectibles. The reward comes from general sales on the network, where users can buy clothes and different accessories for their Gotchi avatars.
Aavegotchi is hosted on Aave; the Aave protocol exists as a side-chain on the Ethereum network, so users must create a MetaMask wallet and an ETH address. To play Aavegotchi, you should have cryptocurrencies in your ETH wallet. You either buy Ethereum (ETH) or Polygon (MATIC) and connect the two blockchains to enable cross-chain operations. Furthermore, you will need GHST to purchase Gotchis and connect to the Aavegotchi network.
You can use Aavegotchi to play with Gotchis in various mini-games, with wearables and upgrades. At the same time, users can earn interest on their collateral. Aavegotchi is a blockchain-based game and a DeFi protocol for staking and NFTs.
Users can buy, sell, or upgrade their Gotchies while earning GHST and interests based on their activity and rate. Moreover, Aavegotchi allows one to own and manage rare NFTs beyond in-game collectibles.
Who Created Aavegotchi?
The Aavegotchi team has rich experience in decentralized financial projects. Coder Dan is a pseudonymous CEO and co-founder who works with the renowned co-founder Jesse Johnson.
Founder and COO of Pixelcraft Studios and creator of Bullionix, a gold-backed NFT collectible, Johnson is an industry veteran who, along with Coder Dan, is leading development.
In the past, Johnson has held strategic positions as director of business relations and international market development manager at various companies and firms, including China’s Intop Exhibition Co and ZB Group.
The team also includes other pseudonymous members who handle vital roles like the art director and Solidity team leader. The founder of Aave, Stani Kulechov, is an advisor to the project.
What is GHST?
GHST is the native token required to participate in the blockchain game. The token doesn’t have a maximum supply, but the current circulating supply is 70,782,641.04 GHST, according to coinmarketcap.
The distribution protocol is based on a bonding curve, ensuring that utility increases positively affect the demand and hence price over time. The more value and time spent on the network, the higher the value.
GHST tokens were distributed in two phases initially in Q4 2020. In particular, the private-sale round included the sale of 5 million tokens, and as part of the presale, 500,000 tokens were exchanged. Governance rewards and rarity farming are two other ways investors can get a token (besides buying it outright).
The vesting period of the distributed tokens during both rounds was set to one year (365 days). Other beneficiaries included the team and the ecosystem reserve fund, which received 1,000,000 GHST.
How Do You Play Aavegotchi?
Aavegotchi contains a 2D map which is called the Gotchiverse. Players can move around this space and look for hidden rewards. There is also a combat mode where players can fight on Aarena. Only users with enough Spiritual Force fight each other.
More gaming features are planned to be added as the game progresses.
So far, these are all the gaming features Pixelcraft has brought to the virtual world of Aavegotchi.
What Makes Aavegotchi Unique?
Aavegotchi isn’t only a gaming platform where users can purchase and create in-game collectibles, but the use of Gotchis goes beyond NFTs, and in-game collectibles, as Gotchis can also be used as collateral.
To enable engagement with Gotchis, users first need to deposit in other supported cryptocurrencies, which gives Gotchis value beyond player activity.
By placing collateral, players can earn interest, which is visible in real time. In addition to earning interest, users can earn GHST rewards as well. The network generates income from the collectibles and wearables market and mini-game fees.
What Gives Aavegotchi Value?
The value of Aavegotchi is determined by its technical capacity, technology, and utility. The user cases, the relevance of the DeFi sector, and the technologies used behind the project are the elements that form the intrinsic value of Aavegotchi as a project.
Aavegotchi has value both as a blockchain-based game (like CryptoKitties) and as a DeFi protocol where players can earn interest on deposited cryptocurrencies.
The intrinsic Aavegotchi value often doesn’t match the market value of GHST. GHST is subject to frequent changes, mainly caused by volatility in the cryptocurrency market, as well as specific factors that can affect the price of GHST.
Are There Any In-Game Tokens?
Yes, there are many tokens associated with Aavegotchi. Furthermore, users can exchange GHST for fiat currency directly. For others, holders will need to exchange them for GHST before turning them into real money:
- GHST
GHST is the leading in-game currency players need to buy anything inside the Gotchiverse. Whether it’s wearables, consumables, or collectibles, you will need this token to do it. In addition, you can stake your GHST to earn income and use it to vote in the DAO.
- FRENS
Stakers earn FRENS tokens daily by locking their GHST tokens. Users can buy Raffle Tickets with FRENS.
- FUD
There are 100,000,000,000 FOMO tokens in total. As the most common token, FUD is also the least valuable. Saying this, it does have some value when buying in-game assets or combining them with other tokens so you can create valuable items.
- FOMO
The total supply of FOMO tokens is 50,000,000,000. FOMO is the second-most prevalent token in Aavegotchi. As with other elements of Gotchiverse, users can spend the FOMO token to create buildings.
- ALPHA
What about the total supply of ALPHA tokens? It’s 25,000,000,000. Players should spend less ALPHA on buildings than on FOMO and FUD.
- KEK
It is the rare Gotchiverse element, as a total supply is 10,000,000,000 KEK tokens.
FOMO, KEK, ALPHA, and FUD are called the Gotchus Alchemica and represent the four elements that make up the Gotchiverse. The holders of these tokens can combine them to create Installations and Aesthetica, like Tiles. Users can also spend one of the four Gotchus Alchemica tokens to purchase land inside the Gotchiverse.
What is the Gotchiverse?
The Gotchiverse is an ecosystem inside which players can explore, battle, build, earn, and socialize using their Aavegotchi. Three main areas comprise the Gotchiverse, and these are:
- The Citadel
This is Gotchis’ home base in the Gotchiverse. A special force field surrounds The Citadel to keep enemy Lickquidators at bay. Players can’t build in The Citadel, except in very rare cases.
- The Grid
The Grid exists outside of The Citadel, and players can build their plots of land here. However, the Lickquidators are also hiding throughout The Grid. The Aarena is within The Grid. This is where Gotchis, with enough Spirit Force can fight each other.
- The Beyond
The Beyond is locked right now. More plots of land will become available as soon as it opens.
How Many GHST Coins are There in Circulation?
There are 44,494,967 GHST in circulation out of a total of 46,259,130.1790459 GHST. The token doesn’t have a limited supply, as unlimited GHST can be purchased on the Token Bonding Curve.
As more GHST is bought from the TBC, the supply increases along with the cost of subsequent GHST. Note that GHST can be sold back in the TBC at any time, reducing the supply and lowering the price of the following tokens purchased from the TBC.
The number of current GHST coins in circulation multiplied by the price of GHST in the market equals the market capitalization of Aavegotchi. Market capitalization evaluates a cryptocurrency and determines its market share and dominance.
How is the Aavegotchi Network Secured?
The Aavegotchi network is running on Aave and, just like Aave, is secured by the Ethereum network that runs on Proof of Work. It means that the same protocol also secures Aavegotchi.
Ethereum is gearing up to move to Proof of Stake to stable scaling and more efficient operations. Aavegotchi smart contracts are open source to increase the chance of errors being detected if any.
How to Buy Aavegotchi?
The buying process can take as little as 15 minutes, and you only need a smartphone or computer, an internet connection, a photo ID, and a means of payment.
- Compare crypto exchanges. The easiest way to purchase Aavegotchi is through a cryptocurrency exchange.
- Create an account. To create an account on an exchange, you need to verify your email address and identity. You should have some photo ID and phone ready.
- Make a deposit. After verification, you can deposit $ using the payment method that is most convenient for you: PayPal, cryptocurrency, wire transfer, and debit or card payments.
- Buy Aavegotchi. Now you can exchange your funds for Aavegotchi. On easier-to-use exchanges, it’s as simple as entering the amount you want to purchase and clicking buy. If you wish, you can withdraw your Aavegotchi to your wallet.
How to Choose an Aavegotchi Wallet?
MetaMask is a popular wallet option for playing Aavegotchi, given that you will need it to connect Ethereum, Polygon, and Aavegotchi to start using the platform. For those interested in trading or investing in GHST, there are many storage options available, and the type of wallet you pick will depend on how much you want to store and what you intend to do with it.
Hardware wallets or cold wallets such as Trezor or Ledger provide the most secure option for keeping cryptocurrencies with offline storage and backup. But they may require strong technical knowledge and are a more expensive option. Thus, they may be better suited to store large amounts of GHST for more experienced users.
Software wallets provide users with other options that are free and easy to use. These wallets are available to download as smartphone, tablet, or desktop apps and can be custodial or non-custodial. When using custodial wallets, the service provider manages and backs up the private keys on your behalf. Non-custodial wallets use secure elements on your device to store private keys. Even though they are convenient, they are less secure than hardware wallets and may be better suited for fewer GHSTs or more novice users.
What about online or web wallets? They are also free, easy to use, and accessible from multiple devices using a web browser. However, they may be less secure than hardware or software alternatives. Since you are likely to trust the platform to manage your GHST, you should choose a reputable service with expertise in security and storage. Therefore, they are best suited for holding small amounts of cryptocurrencies or for those who transact more frequently.
Aavegotchi Staking and Price
GHST owners can stake their tokens in the Aavegotchi Staking Contract
to earn a non-transferable balance of FRENS. Later, FRENS can be converted into Raffle Tickets to win portals and virtual land.
The price of Aavegotchi is in constant motion and is subject to frequent changes due to volatility and many specific factors. GHST can rise and fall drastically in a relatively short amount of time.
In addition to traditional factors like market sentiment, the flow of assets on exchange platforms, and the overall economy, the price of GHST can also be affected by the number of tokens purchased from the Token Bonding Curve and the popularity of Aavegotchi.
Aavegotchi’s current price is 1.205683 €. The GHST trading volume for 24 hours is 5,492,325 €. GHST is currently ranked #387 among all cryptocurrencies by total market capitalization, with a market cap of 53,558,219 €. There are 44,494,967 GHST in circulation.
Who Created Aavegotchi?
The Aavegotchi team has rich experience in decentralized financial projects. Coder Dan is a pseudonymous CEO and co-founder who works with the renowned co-founder Jesse Johnson.
Founder and COO of Pixelcraft Studios and creator of Bullionix, a gold-backed NFT collectible, Johnson is an industry veteran who, along with Coder Dan, is leading development.
In the past, Johnson has held strategic positions as director of business relations and international market development manager at various companies and firms, including China’s Intop Exhibition Co and ZB Group.
The team also includes other pseudonymous members who handle vital roles like the art director and Solidity team leader. The founder of Aave, Stani Kulechov, is an advisor to the project.
FAQ
Where do Aavegotchis Live?
Gotchis exist in the virtual world called the Gotchiverse Realm, split into three distinct zones: the Citadel, the Grid, and the Beyond. Players can buy NFTs, known as REALM, which are plots of land. Gotchis can farm REALM for resource production and further development.
What Blockchain is Aavegotchi Built On?
Aavegotchi was initially built on Ethereum. It means that pixelated ghost NFTs comply with the ERC-721 standard. At the end of 2021, Pixelcraft Studios decided to move its operations to the Polygon network. This means that it’s still compatible with the Ethereum Virtual Machine (EVM), and transactions are still settled on the Layer1 Ethereum network.
On the other hand, all day-by-day “business” activity is performed on Polygon. This network is faster, cheaper, and more sustainable than Ethereum in its current form. Aavegotchi’s move to Polygon has dramatically improved the user experience.
Since Polygon is a Layer2 network built on Ethereum, users can quickly transfer their assets from one network to another.
What Traits do Aavegotchis Have?
Gotchis have six traits: aggressiveness, energy, spookiness, brain size, and eye color. Each feature has a rarity – common, uncommon, rare, or mythical- chosen randomly according to Chainlink’s Verifiable Random Function. Those Gotchis, with less common traits, are more valuable, while their spirit force (the type of collateral used to create the Gotchi) can also affect trait values.
Is Aavegotchi A Good Investment?
Aavegotchi isn’t known for offering exceptionally high APR returns in exchange for staking your GHST. So take your time with five or ten X returns. On the other hand, the slow release of Aavegotchi in-game tokens offers low returns, which means sustainable management of the economy.
GHST has remained at most 85-95 % from its all-time high, likely due to its steady economy.
Buying an Aavegotchi NFT can also be a good investment. Since the beginning of the bear market, the price of the ghost characters in the game has decreased. The most expensive gotchi ever sold was $176,960 10 months ago.
Now that the price of ETH is dropping, you can buy Gotchifor for as little as $600. If the web3 world recovers and Aaegotchi maintains its position as the favorite among the community, these prices may start to look like bargains. The game also features a rental system where players can borrow their Gotchis and receive a share of the landlord’s profits.
Conclusion
Aavegotchi is a renowned project with a unique approach to managing and creating NFTs and DeFi use cases. Players can manage their NFTs while enjoying the game and creating valuable Gotchis, which can be traded or used as collateral for the users’ Gotchi collection.
Even though Aavegotchi is still in its early stages, it is a well-designed game with solid foundations, little awareness, and a thriving community. As the game continues to grow, we can expect an increase in players and gaming options.
