Where does DeFi go next?
After attracting billions of dollars of value onto the Ethereum blockchain – also launching a bull run for all cryptocurrencies – some of the most innovative DeFi developers are looking to take their success to the next level.
And that means breaking out from the small number of crypto whales who have frantically been farming their newly created governance tokens.
That means going mass market by making games.
Aavegotchi is coming
In some ways, this is highly ironic as the DeFi boom has increased Ethereum gas prices to such a level that no blockchain games can now operate on it, so they’re all now moving to various sidechains.
Nevertheless, in general, games have a much wider appeal than finance. Obviously, people spend a lot more time playing Fortnite than in their banking apps.
And that brings us to Aavegotchi.
Created by the team behind the Aave DeFi dapp, the core element is the Aavegotchi (Aave+Tamagotchi) characters.
Each one is an Ethereum based NFT, which is created using a new ERC20 token that Aave is creating. Called GHST (Ghost), users will spend GHST to create each Aavegotchi and each Aavegotchi will need to be backed with the interest-bearing aTokens that run the Aave dapp.
These are generated when a user deposits collateral into Aave, so depositing DAI generates aDAI, USDC generates aUSDC etc.
In this way, each Aavegotchi is created with some inherent financial value. Indeed, because each aToken has an interest rate attached to it, so each Aavegotchi will increase in value over time.
Of course, Aavegotchis may be traded for a higher value than their collateral, as with other NFTs, but the collateral provides a guaranteed minimum price.
Other interesting features of Aavegotchis will be each one’s random traits and rarity level. It will also be possible to equip them with items, which themselves will be tradable NFTs.
Furthermore, Aavegotchis will operate as a governance token for the entire project, meaning that owners will be able to vote on how the project develops over time.
And that’s just the start. Aave is promising a metaverse and what looks like a land system too, and the whole thing will be going live in the coming week – at least its version 1.0.