Aavegotchi: An Intersection of Gaming, Non-Fungible Tokens and Decentralised Finance

The ghosts of lost Decentralised Finance (DeFi) projects have arisen from their Web3 graveyards, and they’re cute as buttons and in Non-Fungible Token (NFT) form. Aavegotchi combines the staking and passive income component of DeFi, the natural scarcity and artwork found in NFTs and gamifies the entire experience. Confused yet? Here’s a quick step-by-step guide to understanding Aavegotchis, and how you can get your hands on one.

To get your own pixelated Casper, you must open a portal to the Netherworld. Each portal will cost $GHST tokens to open them. If you haven’t got any $GHST yet, you can snag some on Uniswap here, however you will need to know how to use Metamask and have some Ether ready to fire. Each portal spawns 10 Aavegotchis at a time, but only one can be the chosen one. So if you thought picking between Charmander, Bulbusaur and Squirtle was hard, then this is exactly 3.33x harder. If your interest is piqued, you might be wondering what makes these NFTs special? Well there is a good reason.

Here’s a test portal. It’s beckoning you to enter!

In the world of NFTs, the debate is always raging on their intrinsic value. With nothing backing each NFT, they propose a similar economic model to art. How can one value art? What factors are there to consider? The most common answer, is that the value is based on what someone else is willing to pay for it, and in appraising a piece, the artist, their expertise, the subjective feel, the quantity and the quality are all factors. But what if each NFT was backed by another asset?

This is where Aavegotchis potentially becomes the gold standard of NFTs. Each and every ghost will require an underlying amount of DeFi tokens to be staked to bring it to life, so it will always have an intrinsic value. Some may cost 20 Aave-staked $DAI or 15 Aave-staked $Link, depending on rarity. So in essence, each and every Aavegotchi will have real-underlying value, and each and every one will be unique in it’s own way.

One of the spawned Aavegotchis which costs aLEND.

So for a few Ether transactions, $GHST tokens, a portal and some DeFi staked tokens, an Aavegotchi will be all yours! All that’s left to do is dress them up and send them to battle! The exact details of what’s to come has not been completely outlined, but expect many fun wearables, battling, mini-games and frens.

Crypto enthusiast, aspiring writer. I can’t dunk.