Aavegotchis, rare crypto-collectibles living on the Polygon blockchain, are seeing a rush of new owners thanks to a new mechanic. The system, known as Aavgotchi lending, permits owners of gotchis to lend them out to other players, receiving rewards in return. Just like the original Tamagotchi introduced the world to digital pets, Aavegotchi introduces the world to playable NFTs, backed by a digital value.
In the last 7 days the number of NFT sales on the platform has exploded, increasing the number of traders by 82% to over 2,000. Those traders generated more than 8,600 gotchi sales, driving almost $11 million in volume through the marketplace.
What is an Aavegotchi?
Aavegotchis are digital pet ghosts on the Polygon Network. Bridging the gap between NFTs and DeFi, they let owners collect income based on their rarity and other factors. The GHST token drives the in-game economy and governance with the launch of the Gotchiverse tentatively planned for January 2022. It will provide a digital home, playground, and battlefield for the gotchis and their owners, with several game mechanics and revenue sources.
It appears to be in the line of expectations that Gotchiverse will scale to similar user numbers and transactions of dapp games like Axie Infinity and Splinterlands. That’s why investors are looking at lending as a way to earn a passive income when new players arrive looking to borrow some gotchis. Looking at sales in the last 24 hours we can see the average price of a Gotchi at around $1,400.
Secure and Instant Lending
The Gotchi Lending smart contract is designed so that Aavegotchis are lent with limited rights. That way the borrower can play to earn in the Gotchiverse but never steal the NFT. The trustless nature of this execution means instant approvals and a sharing economy, backed by the security of the Polygon blockchain.
With Gotchi Lending, owners can decide how long they want to lend it for, what, if any, fees they want to charge upfront, and the reward split between the owner and the person renting the Gotchi. All GHST and Alchemica earned during the lending duration are deposited into an escrow balance that splits rewards at the time of the lending agreement completion. Gotchi owners can advertise their gotchi with a split of 80/20; 50/50 or whatever they think makes sense.
Everyone can play
This evolution of the play-to-earn mechanic is an interesting approach to scaling blockchain gaming. The idea that players become the ambassadors for a platform is not a new one. However, now they can be directly rewarded for doing so without the need for any 3rd party interference which means a true internal economy can flourish.
Gotchi Lending offers a seamless, scalable way for owners to lend their gotchis to strangers, with security and terms they are comfortable with. For everyone who wants to play in the Gotchiverse, this means they don’t need upfront capital to play-to-earn. Anyone is able to farm Alchemica tokens and craft gameplay NFTs. Those interested in checking out Aavegotchis can have a look at the Aavegotchi marketplace here.
The above does not constitute investment advice. The information given here is purely for informational purposes only. Please exercise due diligence and do your research. The writer holds ETH, BTC, ENS, FTM, IMX, FLOW, GRT, OMI, GALA, and CDC.
