
<p>The NFT Market is stabilizing thanks to solid and engaged communities with a healthy trading behavior. Usefulness of tokens now seems to take precedence over the notion of financial investment.</p>



<p>The first era of NFTs where profit and speculation reigned supreme seems over, and gradually a new page in the history of this technology is being written under the mainstream radar.</p>



<p>The next boom is beginning to take shape. There is still time to prepare for it, but get ready because this wave will most likely be even more explosive and impactful than the era of “NFT Collectibles”.</p>



<div class="wp-container-1 wp-block-buttons">
<div class="wp-block-button aligncenter has-custom-width wp-block-button__width-100 has-custom-font-size is-style-fill has-medium-font-size"><a class="wp-block-button__link has-white-color has-luminous-vivid-orange-background-color has-text-color has-background" href="https://www.slideshare.net/secret/ECKivLhCG3AUNT" style="border-radius:0px" target="_blank" rel="noreferrer noopener">Read your Q3 2022 NFT Market Report</a></div>
</div>


The NFT market shrinks and enters into a stabilizing phase, also showing auspicious signs of a coming boom taking shape.

A massive 77% drop was observed in terms of USD traded between Q2 and Q3 2022 with a global volume of about US$1.7 billion in Q3 2022.

A net quarterly loss of US$450M is recorded for the first time ever.

A 84% decrease in profit at resell is observed during the period, for a total loss that decreased by 44% (US$326 million profit for US$783 million loss).

1. The fundamentals
2. A look back at Q3 2022
3. Overall performance Q3 2022
4. Detailed performance (search volume, performance by segment, market distribution by project, etc.)
5. Profits & losses on the market (profit & loss per segment over time, most profitable projects, etc.)
6. Focus by segment (key metrics about: crypto-art, collectibles, gaming, metaverses, utilities)
7. Conclusion


2022

Quarterly NFT Market Report


<p>The bear market has largely impacted the NFT market. For the first time in the history of NFTs, trading-related activities are no longer profitable. Despite a complicated economic context, NFTs continue to surprise, and we observe some strong trends around Metaverses and Utilities over the period, which tends to revitalize the markets. </p>



<p>With speculation in a tailspin, it looks like the industry has once again entered a building phase, away from the spotlight.</p>



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</div>


A massive 25% drop was observed in terms of USD traded between Q1 and Q2 2022 with a global volume of about US$8 billion in Q2 2022.

A net profit of US$460M is recorded over Q2 2022, a significant decrease compared to Q1 2022 (US$2.3B).

Secondary market remains predominant with almost 80% of the volume of USD traded, in the meantime, primary market has constantly decreased over the period.

A 46% decrease in profit at resell is observed during the period, for a total loss that increased by 23% (US$1.8 billion profit for US$1.4 billion loss).

The market is more centralized than ever: More than 30% of the volume of USD traded over the quarter is distributed between projects that have been launched or acquired by Yuga Labs.

The bear market has largely impacted the NFT market. For the first time in the history of NFTs, trading-related activities are no longer profitable. Despite a complicated economic context, NFTs continue to surprise, and we observe some strong trends around Metaverses and Utilities over the period, which tends to revitalize the markets.

With speculation in a tailspin, it looks like the industry has once again entered a building phase, away from the spotlight.


<p>The incredible enthusiasm for NFTs led to tremendous growth of the NFT industry in 2021. The early days of 2022 mark a new era for NFTs, with many changes to the market.<br>Are we facing a bubble on the verge of bursting? Are the NFTs markets holding up despite the tense geopolitical situation surrounding the war in Ukraine?<br>The Q1 Quarterly Report 2022 presents the first detailed figures on the reality of NFTs markets.<br>This quarter, we had the chance to interview Shaban Shaame, a pioneer of Blockchain Gaming since 2014, who shares his vision and thoughts on the state of the industry.</p>



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</div>


The general public seems to be losing interest in NFTs, if the search volume on Google is to be believed.
Collectibles are the predominant segment in the industry, far ahead of Art or even the Metaverses.

The resale profit volume is down 3% while the total loss volume is up nearly 50% compared to the previous quarter.
For the first time, some segments show a negative balance: Gaming shows a total loss of almost $50 million on the segment, which makes it the least profitable segment of the industry from a trading point of view.

With nearly $8 billion traded in the first quarter of 2022, the market cannot really be considered to have collapsed. We are seeing more of a form of stabilization, in line with the last quarter of 2021.
Conversely, the volume of sales fell by nearly 50%, with a very marked slowdown in the volume of buyers and sellers.
The great novelty of this quarter is undoubtedly the evolution of profitability in the markets. Making a profit in NFTs is no longer so easy in 2022...


<p>Every year since 2018, NonFungible.com publishes “Yearly NFT Market Report” which remains to date the most in-depth and comprehensive piece of research about the NFT Industry</p>



<p>These reports are designed for curious newcomers as well as experienced investors.</p>


Collectibles is probably the segment that is running out of steam in favor of Metaverses and Blockchain Gaming.

With over $5 billion in profit recorded in NFT trading, speculation is an integral part of this market. But this is a more complex activity than it seems...

Markets gradually became saturated with the issuance of millions of new NFTs. How have the markets reacted to this unbridled multiplication of assets?

The market boomed to over $15 billion for nearly 2 million active wallets.

"NFT" was declared word of the year 2021. This is not surprising given the exponential growth of the industry. Between unprecedented opportunities, excessive speculation and new economic models: where are we?

The 200 pages, 70 metrics and 15 interviews of this report have been designed to give you the most complete and up-to-date overview of the different facets of the NFT industry.

Yearly NFT Market Report

2021


<p>Data doesn’t lie, at NonFungible we analyze it and make the complex simple and freely accessible for everyone.</p>



<p>Our Q3 Report looks into Non-Fungible Token trends on the Ethereum chain. We use our data to provide an in depth analysis of the market backed with charts and analytics.</p>


Q3 of 2021 broke the $billion threshold by a long way, with almost $6 billion traded on the Ethereum blockchain alone. All indicators continue to show an upwards trend, with the number of wallets in use of both buyers and sellers increasing significantly.

Record USD volume for NFT sales

Unsurprisingly, the collectibles segment generated the most USD volume this quarter, undoubtedly stemming from PFP hype but also from the continual increase in the price of CryptoPunks and Bored Ape Yacht Club.

Market Distribution

The recent growth of the NFT industry has been almost unbelievable. In just a few short months, the $billion-dollar mark has been crossed in traded NFTs, followed by $billion per quarter and only then to be surpassed by $billion per month.

The market we see evolving today is a market that is growing at an exponential rate, with unprecedented liquidity but it is also even more of a speculative and volatile market than ever before.

The current market growth dictates that all investors and NFT stakeholders should pay extra attention as Triple-digit growth goes hand in hand with market instability, unrealistic expectations and potential disappointments.


<p>Whether you&#8217;re a newcomer or a veteran in the crypto ecosystem, you must have heard of Decentralized Finance (DeFi). This concept aims to automate the various financial mechanisms from traditional finance through decentralised smart contracts.</p>



<h2>Introduction to Decentralized Finance (DeFi)</h2>



<p>In DeFi, the economy does not pass through a third party, here are its simplest features:<br></p>



<ul><li>Lending: making tokens available</li><li>Borrowing: borrowing tokens</li><li>Swap: exchange one token for another</li><li>Staking: placing your tokens in a smart contract to generate more tokens</li></ul>



<p>Lending or borrowing tokens will always be done with a more or less variable rate depending on the service used, this rate also fluctuates depending on the liquidity available and the duration of the operation.</p>



<p>Swaps can be more or less advantageous depending on the protocols used and as for staking, the number of tokens recovered will vary depending on the number of tokens placed. The bigger your share, the bigger your reward will be.</p>



<p>There are other, more complex features:</p>



<ul><li>Liquidity mining: recover the costs related to a liquidity pool by depositing the associated token pair in the smart contract</li><li>Yield farming: recovering a reward linked to a liquidity pool</li><li>Vesting: a form of liquidity mining, stacking or yield farming but which blocks rewards for a given time.</li></ul>



<p>The first two features are often closely related, while Liquidity Mining recovers transaction fees, Yield Farming can offer other types of rewards and its these use cases that are most used in the Non-Fungible Tokens space. Here are some examples of NFT projects that have utilised different mechanisms for their project.</p>



<h2>Cometh.io</h2>



<div class="wp-block-image"><figure class="aligncenter"><img src="https://lh6.googleusercontent.com/iAwBCXnG3ZPhiCTobev_MaUyDEf8MTxZvvXYcOfFNFroAm-uGT-R-Z1mZ4cmXGmPjQBXsW9O6CfZM8XlPFlITEbfNiT0NbLLHzup3Apg5aRaAXfWi9KpayCYxcP_Og" alt=""/><figcaption><em>Cometh.io</em></figcaption></figure></div>



<p><a href="https://www.cometh.io/" target="_blank" rel="noreferrer noopener">Cometh.io</a> is one of the first NFT projects to use the power of DeFi to launch its game. The only way to <a href="https://docs.cometh.io/spaceships/how-to-get-spaceships" target="_blank" rel="noreferrer noopener">acquire your first Cometh ships</a> was to buy them with $DUST tokens and to acquire these, it would be necessary to stack another of the project&#8217;s tokens, $MUST.</p>



<p>Once the ships have been obtained, the game can begin. The goal is simple to understand, succeed in placing your ship in the right orbit, enabling you to mine the comets. Except that in practice, it is obviously not so easy, but worth it as for every comet mined, rewards in $MUST are delivered.</p>



<p>Each ship has its own particularities: speed, mining efficiency and size.</p>



<p>We wrote<a href="https://nonfungible.com/news/game/a-voyage-through-space-with-cometh-io" target="_blank" rel="noreferrer noopener"> an article about Cometh</a> so you could easily understand the different mechanics from the game, so don&#8217;t hesitate to go and read it!&nbsp;</p>



<h2>Aavegotchi</h2>



<div class="wp-block-image"><figure class="aligncenter"><img src="https://lh6.googleusercontent.com/JKCbeoHyAHymxmWOj0ldRMykX4x8cBUPapIIcQ5hRDUJYcBr_m2A-avaeoAnFjFUxGNVIh7BggqR_5JiJWruIYbm4oWvKCOh63Ufudo9Qlx0EVNlMtk0HtSC99vSBQ" alt=""/><figcaption><em>Aavegotchi</em></figcaption></figure></div>



<p>For users looking to understand deeper the world of DeFi,<a href="https://aavegotchi.com/" target="_blank" rel="noreferrer noopener"> Aavegotchi</a> is the perfect project! The team behind it are veterans of the crypto and NFT ecosystem and they wanted to maximize what was possible to put on-chain.</p>



<p>To summon a Gochi, several steps were necessary:</p>



<ul><li>Have $GHST to buy a portal</li><li>Open the portal to invoke 10 Gochis randomly generated by Chainlink&#8217;s RNG algorithm</li><li>Among these 10 Gotchis, choose one, associated with a crypto. For example, if a Gochi is correlated to the USDT, USDt is required to finalize the invocation.</li></ul>



<p>And once the Gochi has been summoned, the magic really begins! Because the USDT that was used to invoke the Gochi are in essence &#8220;stacked’’ in the Gotchis. It is therefore NFTs that serve, thanks to the Aave protocol, to generate interest according to the associated collateral.</p>



<p>The world of Aavegotchis has grown enormously in one year and there are still many steps on the roadmap and we wrote several articles on the subject in collaboration with their team. To better understand this complex project in more detail, we invite you to read our articles:</p>



<ul><li><a href="https://nonfungible.com/news/defi/aavegotchi-the-missing-link-between-nft-and-gaming" target="_blank" rel="noreferrer noopener">Understand everything about Aavegotchi</a></li><li><a href="https://nonfungible.com/news/defi/new-aavegotchi-roadmap-reveals-onchain-future" target="_blank" rel="noreferrer noopener">Aavegotchi&#8217;s roadmap</a></li><li><a href="https://nonfungible.com/news/defi/three-big-takeaways-from-aavegotchis-metaverse-reveal" target="_blank" rel="noreferrer noopener">Aavegotchi announces its metaverse</a></li></ul>



<p>Also, the community has been very active in participating with the development of the project, with several ancillary tools have been put in place by and for the community:</p>



<ul><li><a href="https://ghst.gg/" target="_blank" rel="noreferrer noopener">Ghst.gg:</a> a veritable Swiss Army knife gathering all the tools necessary to analyze the universe of Aavegotchi</li><li><a href="https://www.gotchivault.com/" target="_blank" rel="noreferrer noopener">Gotchi Vault</a>: allows you to place your Gotchis in a chest to feed them every day and improve rewards</li></ul>



<h2>Uniswap V3</h2>



<div class="wp-block-image"><figure class="aligncenter"><img src="https://lh4.googleusercontent.com/Dglz8pBi75_KIwVOF8_qvvkuJHIFQskLcdvsg9dtUmTShDNdrCMYs5vxTqU2lVJ6HF1u8obeGR9FasGONt24OPKgXb9urMvdWS2DG3kbNw26nSdd3H5F8kBr8ykqvA" alt=""/><figcaption><em>Uniswap</em></figcaption></figure></div>



<p>When it was updated to version 3, the famous Decentralized Exchange (DEX) <a href="https://uniswap.org/" target="_blank" rel="noreferrer noopener">Uniswap</a>&nbsp; started using NFTs and not to play games or collect images. The chosen use is completely innovative in the sector, Uniswap NFTs are utilised to optimize transaction-related gains for those who deposit liquidity in the various pools.</p>



<p>Until then, by depositing a liquidity pair in the DEX, there was no defined limit and users can now set one to optimize the recovered fees.</p>



<p>“Rather than being required to allocate capital across the entire price spectrum from 0 to infinity, each LP is given full control over what price ranges they wish to provide liquidity to”</p>



<figure class="wp-block-embed aligncenter is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><p lang="en" dir="ltr">2/ <br><br>The blogpost provides a high level overview<br><br>For a detailed technical dive, we recommend reading the Uniswap-v3-core whitepaper<a href="https://t.co/1TSBI7iz3K">https://t.co/1TSBI7iz3K</a></p>&mdash; Uniswap Labs 🦄 (@Uniswap) <a href="https://twitter.com/Uniswap/status/1374407381958848520?ref_src=twsrc%5Etfw">March 23, 2021</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<p>Prior to this update, the default limit was 0.3% per trade but it is now possible to choose fees ranging from 0.05% to 1%, allowing greater freedom in case of a ‘Take Profit’ strategy or market decline.</p>



<h2>The DeFi x NFT is still a very experimental field</h2>



<p>Although the merge between NFTs and DeFi has immense potential, these two worlds are still very recent and their use is still a very experimental field, therefore it&#8217;s important to keep in mind that projects with a focus on DeFi are relatively risky.</p>



<p>We could have talked about more projects, created last year, that present interesting concepts. But it is difficult to know at this time whether the use of NFTs in these projects is relevant and above all, planned for the long term.</p>



<p>More and more projects that link DeFi and NFTs are make their concepts fun to use and therefore easier to use. This simplified access to Decentralized Finance should not make us forget the due diligence as well as the necessary research we must carry out before using them!&nbsp;</p>



<p>That said, these different experiences will have an overall positive impact on the NFT ecosystem to better determine what will and won&#8217;t work in the long run..</p>


Decentralized finance has been around for many years on Ethereum but really exploded during 2020. Very quickly, certain NFT mechanisms were included to make their projects more complete, let's take a look at some use cases!

What interactions exist between NFTs and DeFi?


<p>Since last year more and more NFT projects have been using mechanisms inspired by <strong>decentralized finance </strong>systems. Being described as a modern fairy tale about DeFi and the rise of decentralization, <a href="https://degens.farm/" target="_blank" rel="noreferrer noopener">Degen’$ Farm</a> is proposing a different distribution model that is tightly connected with DeFi culture.&nbsp;</p>



<p>The game invites farmers to test their <strong>crypto farming skills</strong> and farm unique Collectibles&#8217; NFT creatures. It’s essentially dynamic art and the game itself is full of modern <strong>crypto allusions and irony</strong> that might be misunderstood from the first sight.</p>



<p>Let’s dive a bit deeper into the farm and find out who is behind this project and what can be done with it?</p>



<h2><strong>Presentation of degens.farms</strong></h2>



<p>The idea of the game was born in January and the project was officially launched at the beginning of June. The team is made up of six people and has <strong>Chichi</strong> (funky cartoon chick) as a CEO, who has wished to remain anonymous in order to have a free hand and really have some fun with this project.</p>



<div class="wp-block-image"><figure class="aligncenter size-full is-resized"><img loading="lazy" src="http://nfcms1/app/uploads/2021/08/degensfarm-chichi.gif" alt="degensfarm chichi" class="wp-image-5826" width="256" height="256"/></figure></div>



<p>That said, in an<a href="https://www.nftradar.org/nft-radar-new-project-presentation-degens-farm/" target="_blank" rel="noreferrer noopener"> interview with NFT Radar</a>, it is interesting to note that the core team has already had some significant experience in <strong>the world of music and art</strong> for more than 10 years, while the developers have been using Solidity since 2017 and have experience in <strong>mobile games</strong> for more than seven years.&nbsp;</p>



<p>It’s pretty easy to confuse the newcomers with the crazy APY of their main in-game utility token called <a href="https://etherscan.io/token/0xdada00a9c23390112d08a1377cc59f7d03d9df55" target="_blank" rel="noreferrer noopener">$DUNG</a>, but it obviously serves the purpose of <strong>‘degen storytelling’</strong>.</p>



<p>What is funny – creatures of the farm are the only entities that produce precious $DUNG. <strong>Team has never sold any $DUNG</strong> and distributed the initial supply for free. After some research it’s becoming clear that the project has some serious <a href="https://www.chainlinkecosystem.com/ecosystem/degens-farm/" target="_blank" rel="noreferrer noopener">smart-contract eco-system</a> driven by <strong>Chainlink</strong> oracles.</p>



<p>While you can enjoy crazy $DUNG farming, the core playground of the Degen’$ Farm universe is <strong>NFT farming</strong>, so let’s take a closer look at this process.</p>



<h2><strong>How does it work?</strong></h2>



<div class="wp-block-image"><figure class="aligncenter size-full is-resized"><img loading="lazy" src="http://nfcms1/app/uploads/2021/08/degenfarms-nft.gif" alt="degenfarms nft" class="wp-image-5815" width="1200" height="668"/></figure></div>



<p>At Degen’$ Farm <strong>everything starts with the $BAGZ</strong> with the hard cap of 4500 tokens. There are 20 types of creatures on the farm (cows, sheeps, goats etc.), with three levels of rarity: <strong>Normies</strong>, <strong>Chads</strong>, and <strong>Degens</strong>.</p>



<p>While $BAGZ are built as ERC20 tokens, inside the $BAGZ there are 2000 basic Normie creatures and 2500 lands that are both ERC-721. In order to farm next level creatures you put <strong>one land and one Normie</strong> into the <a href="https://degens.farm/farming" target="_blank" rel="noreferrer noopener">farming cabinet</a> and come back in one week to see what you got – another portion of $DUNG or rare Chad. </p>



<p>Essentially, 2000 Normies are used to breed 400 Chads, which can then be used to give birth to 20 mighty Degens. The basic probability of <strong>Chad farming is</strong> <strong>20%</strong>, and the basic probability of <strong>farming a Degen is</strong> <strong>5%</strong>. But if you are an experienced DeFi farmer you can affect it!</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><a href="https://opensea.io/assets/0xd227df494367a8b769b4bf2bbebd0388a8758741/20143" target="_blank" rel="noopener noreferrer"><img loading="lazy" width="506" height="504" src="http://nfcms1/app/uploads/2021/08/degenfarm-chad.jpg" alt="degenfarm chad" class="wp-image-5824" srcset="http://nfcms1:80/app/uploads/2021/08/degenfarm-chad.jpg 506w, http://nfcms1:80/app/uploads/2021/08/degenfarm-chad-300x300.jpg 300w, http://nfcms1:80/app/uploads/2021/08/degenfarm-chad-150x150.jpg 150w" sizes="(max-width: 506px) 100vw, 506px" /></a></figure></div>



<p>At the moment of giving birth to another animal the probabilities can go up depending on various factors. If you own a horse (related to Uniswap) and are an owner of UNI tokens, <strong>the probability of giving birth to a Chad is higher</strong>.</p>



<p>Also the <strong>market momentum affects the probability</strong> – if the price of UNI is going up at the moment you’re giving birth, the probability of getting a Chad is higher too. You can also boost your probability by obtaining <strong>farming tools</strong> that could only be <a href="https://degens.farm/dung-swap" target="_blank" rel="noreferrer noopener">swapped</a> for $DUNG.</p>



<p>There’s a lot of farming tips and tricks that could be found in the project <a href="https://docs.degensfarm.com/" target="_blank" rel="noreferrer noopener">docs</a> and hot farming discussions in the <a href="https://discord.gg/UfhPh5kyMS" target="_blank" rel="noreferrer noopener">Discord</a>.</p>



<h2><strong>Conclusion</strong></h2>



<p>While most projects on the market are aiming for instant distribution and therefore usually insiders and whales are the primary beneficiaries, Degen’$ Farm provides a different perspective where your DeFi skills and knowledge are playing a crucial role.</p>



<p>In a way, this game is a snapshot of the current DeFi landscape and users are not only earning ultra-rare NFT’s, but also learning and <strong>improving their farming skills</strong> by playing. But what is more important – It’s a fun and engaging way to become a real crypto farmer and collect cute animated creatures with sounds.</p>



<p class="has-vivid-red-color has-text-color">Disclaimer: This is a sponsored article. No content or article should be considered as financial advice. We strongly recommend you to conduct due diligence and always do your own research before investing in a project.   </p>


Tired of profile picture rush and looking for some fresh on-chain experience? Check out Degen’$ Farm with its wicked skill-based distribution model. 

Slightly more than 10,000 profile pictures collection


<p><a href="https://aavegotchi.com/" target="_blank" rel="noreferrer noopener">Aavegotchi</a> have established themselves as one of the <a href="https://aavegotchi.medium.com/the-first-nft-wallet-on-polygon-is-aavegotchi-b24cac01a1d9" target="_blank" rel="noreferrer noopener">premier NFT crypto avatars with their innovative approaches</a> to personality traits, on-chain storage and Aave-partnered DeFi capabilities. One area that has til now remained a question mark, is <strong>the future integration of a virtual world</strong> for these cute ghosts to inhabit.</p>



<p><strong>Pixelcraft Studios</strong>, the core dev team, has long promised an expansion of Aavegotchis into the metaverse. But definitions for a metaverse are all over the map and so there’s been no clear indication of what this expanded environment would look like. <strong>Til this week, that is!</strong></p>



<h2>Aavegotchi&#8217;s Metaverse: The Gotchiverse Realm</h2>



<p>Wednesday, June 23rd saw the official Aavegotchi Twitter (<a rel="noreferrer noopener" href="https://twitter.com/aavegotchi" target="_blank">@aavegotchi</a>) host a Twitter Spaces event to reveal a brand new lite paper dedicated to what they are calling, &#8220;<strong>The Gotchiverse Realm</strong>”.</p>



<p>The Gotchiverse Realm is described as <strong>the homeworld for Aavegotchis</strong> to inhabit and participants in the online event were treated to a high level overview of the various game mechanics and tokenomics of their take on <strong>what a crypto metaverse can be</strong>.</p>



<p>Digital real estate and the gamification of NFTs are already gaining a significant amount of attention with leading projects like <strong>Decentraland</strong> and <strong>Cryptovoxels</strong> active in this space. With the potential of this space growing week by week, we’re excited to share <strong>three key features</strong> that The Gotchiverse is promising.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="939" height="650" src="http://nfcms1/app/uploads/2021/06/aavegotchi-real-gotchiverse.jpg" alt="aavegotchi real gotchiverse" class="wp-image-5068" srcset="http://nfcms1:80/app/uploads/2021/06/aavegotchi-real-gotchiverse.jpg 939w, http://nfcms1:80/app/uploads/2021/06/aavegotchi-real-gotchiverse-300x208.jpg 300w, http://nfcms1:80/app/uploads/2021/06/aavegotchi-real-gotchiverse-768x532.jpg 768w" sizes="(max-width: 939px) 100vw, 939px" /><figcaption><em>A couple of Aavegotchis farming ALPHA</em></figcaption></figure></div>



<h2>Yield Generating land parcels</h2>



<p>There is a reason for The Gotchiverse’s diverse regions that goes beyond aesthetics. While most metaverse project’s offer parcels of various size and shape, each Realm parcel also comes with <strong>a unique mix of “resources”</strong> under its soil.</p>



<p>Owning a parcel is more than a sandbox to build on, but also access to four distinct resources known as $ALPHA, $FOMO, $FUD and $KEK. These resources are necessary for <strong>crafting a wide variety of NFT “installations”</strong> on top of parcels. Each of these four resources are technically ERC20 tokens and it is up to you and your Aavegotchi to effectively farm the parcels.</p>



<p>The “<strong>treasure map</strong>” provided subtly indicates which resources one is most likely to farm. For example, blue waterways indicate an abundance of ALPHA whereas the bright hot lava areas will certainly offer more FOMO to be farmed.</p>



<p>One important note is a sense of scale. The team stated on call that it takes a single Aavegotchi over one hour to cross the Realm from east to west. It also appears that the <strong>Citaadel</strong> offers a special gameplay zone that is roughly 20% of the entire Realm’s space. It’s explained that farming of all four resources is also available inside the <strong>Citaadel</strong> with one key being the lack of competitive “<strong>tower defense</strong>” type game play scenarios inside the Citaadel.</p>



<p>That means we can look forward to <strong>a truly RPG gaming inspired experience</strong> in addition to the typical buildings and yield farming.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1012" height="506" src="http://nfcms1/app/uploads/2021/06/aavegotchi-materials.jpg" alt="aavegotchi materials" class="wp-image-5065" srcset="http://nfcms1:80/app/uploads/2021/06/aavegotchi-materials.jpg 1012w, http://nfcms1:80/app/uploads/2021/06/aavegotchi-materials-300x150.jpg 300w, http://nfcms1:80/app/uploads/2021/06/aavegotchi-materials-768x384.jpg 768w" sizes="(max-width: 1012px) 100vw, 1012px" /></figure></div>



<h2>Free-to-play, one-time-use NFTs</h2>



<p><strong>The</strong> <strong>Aavegotchi’s arch nemesis</strong> was also revealed. Known as “The Liquidators”, these creatures are actually competing with Aavegotchis for resources that often “leak” onto the surface of the world. The result is described as the equivalent of <strong>a big easter egg hunt</strong> where players are incentivized to explore and snatch up yield first.&nbsp;</p>



<p>Like Aavegotchis, Liquidators are unique NFTs that can be your game character of choice. Unlike Aavegotchis, these Liquidators are meant to offer a f<strong>ree-to-play entry point with no cap on supply</strong> and limited collectability.&nbsp;</p>



<p>This is a fascinating new use case for NFTs that seems to be geared toward <strong>mass adoption</strong> where everyone will have a means to chasing down the Alchemica Resources.&nbsp;</p>



<h2>A fairly distributed world</h2>



<p>The first generation of Aavegotchis (known as Haunt 1) were sold in March 2021 via a typical NFT Drop or “first come first serve” model. That saw 10,000 Aavegotchi NFTs sell out in about 1 minute. While most would call it a success, <strong>the core team were not satisfied</strong> with the amount of stress and disappointment this sales model caused much of the Aavegotchi fanbase.&nbsp;</p>



<p>The situation prompted the team (and the AavegotchiDAO) to carefully consider new, potentially better approaches to large scale NFT sales. It was confirmed at the Twitter Spaces call that a “<strong>bid-to-earn</strong>” auction model powered by crypto auction experts, GBM, is in the works for both Haunt 2 (this July) and the first REALM parcel pre-sale in August. The auction method <strong>leaves the door open for 72 hours</strong> and enables everyone to take their time bidding on any available parcel over that period.</p>



<p>Perhaps even more surprising is the confirmation that only 80% of pre-sale #1 parcels will be auctioned while the remaining 20% of parcels will all be distributed via a Chainlink VRF raffle.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1400" height="788" src="http://nfcms1/app/uploads/2021/06/aavegotchi-realm-distribution.jpg" alt="aavegotchi realm distribution" class="wp-image-5069" srcset="http://nfcms1:80/app/uploads/2021/06/aavegotchi-realm-distribution.jpg 1400w, http://nfcms1:80/app/uploads/2021/06/aavegotchi-realm-distribution-300x169.jpg 300w, http://nfcms1:80/app/uploads/2021/06/aavegotchi-realm-distribution-1024x576.jpg 1024w, http://nfcms1:80/app/uploads/2021/06/aavegotchi-realm-distribution-768x432.jpg 768w" sizes="(max-width: 1400px) 100vw, 1400px" /></figure></div>



<p>While Aavegotchi is famous for <strong>having perfected Chainlink-powered raffles</strong>, the size and scope of this raffle announcement is still quite shocking. To facilitate this, a new ERC-1155 was introduced, aptly called “<strong>Drop Tickets</strong>”.&nbsp;</p>



<p>Anyone <a rel="noreferrer noopener" href="https://aavegotchi.com/stake" target="_blank">staking Aavegotchi’s GHST token</a> earns FRENS points which can soon be exchanged for these Drop Tickets. There are also a number of ways to win drop tickets, with <strong>the team allocating 10,000 USD worth of funding</strong> toward ticket giveaways.&nbsp;</p>



<p>With the <strong>REALM presale</strong> still a couple months away, we all have some time to farm or earn some sweet Drop Tickets. It’s understood that the raffle will take place during <strong>the same time window</strong> as the auction itself. Though exact dates remain to be confirmed.</p>



<p>If someone wants to use their Drop Tickets before the August sale, it is worth noting that Drop Tickets can be traded on the Aavegotchi marketplace and will also work in a similar raffle confirmed for <strong>Haunt 2, second generation Aavegotchis this July.&nbsp;</strong></p>



<p>You can <a href="https://docs.google.com/document/d/1hUHF29F3_tByWd8ezSphYEE0gPJYg3K5CN1K-X3_WK8/edit?usp=sharing" target="_blank" rel="noreferrer noopener">read The Realm lite paper in its entirety here</a> or join the Aavegotchi conversation at <a href="https://discord.gg/aavegotchi" target="_blank" rel="noreferrer noopener">the official Discord</a> and <a href="https://t.me/aavegotchi" target="_blank" rel="noreferrer noopener">Telegram</a>.&nbsp;&nbsp;</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1012" height="506" src="http://nfcms1/app/uploads/2021/06/aavegotchi-gotchis-frens.jpg" alt="aavegotchi gotchis frens" class="wp-image-5064" srcset="http://nfcms1:80/app/uploads/2021/06/aavegotchi-gotchis-frens.jpg 1012w, http://nfcms1:80/app/uploads/2021/06/aavegotchi-gotchis-frens-300x150.jpg 300w, http://nfcms1:80/app/uploads/2021/06/aavegotchi-gotchis-frens-768x384.jpg 768w" sizes="(max-width: 1012px) 100vw, 1012px" /><figcaption><em>A couple frenly Aavegotchi ready to explore The Gotchiverse Realm</em></figcaption></figure></div>



<p class="has-vivid-red-color has-text-color">Disclaimer: This is a sponsored article. No content or article should be considered as financial advice. We strongly recommend you to conduct due diligence and always do your own research before investing in a project.</p>


The Aavegotchi's Metaverse has been revealed! This realm will bring the game to the ultimate stage, here's some main takeaway to keep in mind.

Gamified Yield Farming!? 3 big takeaways from Aavegotchi’s metaverse reveal


<p>Over the past year DeFi has been developing at a rapid pace, but its spread into the world of NFTs as a viable option for traders and finance has been slower. NFTs provide an ability to <strong>wrap tokens</strong> <strong>and value</strong> and provide a viable container that can prove very useful.</p>



<p>However the merging of its visual abilities plus <strong>these DeFi centric skill sets have been limited</strong>. Even less can be found utilizing the multi power of Semi Fungible Tokens which can be both unique art and fungible value, until now.&nbsp;</p>



<p>Getting to <strong>grips with DeFi</strong> can be complicated for anybody who hasn&#8217;t mastered the technical and financial aspects related to the blockchain. <strong>Even casual investors with over 6 months experience can still find some aspects confusing.</strong></p>



<p>But some <strong>experienced traders</strong> have learned how to leverage these aspects and are always looking for new tools to put together the most effective trading strategies and profit making.&nbsp;Perhaps the most <strong>successful use cases of NFTs in DeFi</strong> will reveal themselves from this hybrid community?</p>



<p>This is what <a href="https://wows.finance/" target="_blank" rel="noreferrer noopener">The Wolves of Wall Street</a> is betting on by focusing more specifically on Semi-Fungible Tokens which provide the ability to add a fun visual characterisation to ease entry level investors into the DeFi space as well as the innovation to attract <strong>hardcore DeFi traders and investors</strong>.</p>



<h2>C-Folios and Semi Fungible Tokens</h2>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1494" height="1600" src="http://nfcms1/app/uploads/2021/05/wolves-of-wall-street-cfolio.jpg" alt="wolves of wall street cfolio" class="wp-image-4785" srcset="http://nfcms1:80/app/uploads/2021/05/wolves-of-wall-street-cfolio.jpg 1494w, http://nfcms1:80/app/uploads/2021/05/wolves-of-wall-street-cfolio-280x300.jpg 280w, http://nfcms1:80/app/uploads/2021/05/wolves-of-wall-street-cfolio-956x1024.jpg 956w, http://nfcms1:80/app/uploads/2021/05/wolves-of-wall-street-cfolio-768x822.jpg 768w, http://nfcms1:80/app/uploads/2021/05/wolves-of-wall-street-cfolio-1434x1536.jpg 1434w" sizes="(max-width: 1494px) 100vw, 1494px" /></figure></div>



<p>The use of SFTs within the WOWS ecosystem is centred around their <strong>CryptoFolios</strong> or <strong>C-Folios</strong>™ and are visualised as Liquidity Pool <strong>Trader Wolves</strong> or the Stablecoin <strong>Business Bois</strong> (aka dogs).</p>



<p>The LP Wolf traders are eager for a <strong>quick profit</strong> and only want one thing: to make money, whatever the cost, but they are also the main token holders and support the growth of the token.</p>



<p>The second group, the Business Bois (dogs), consists of <strong>stablecoin farmers</strong>. They create the Total Value Locked of invested stablecoin, a key metric in DeFi, and are long term players, but are also accused by token holders of not contributing enough to the tokens health, having only to invest in stablecoins with minimal token buy in.</p>



<p>In this way, <strong>WOWS visualizes the opposing pillars of AMM</strong> and lending with 2 factions cut from the same cloth Wolves and Bois and reveal their dynamics within DeFi for a wider audience.</p>



<figure class="wp-block-embed aligncenter is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-4-3 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="Wolves of Wall Street NFT" width="500" height="375" src="https://www.youtube.com/embed/XWwNUKuLyy0?start=5&#038;feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div></figure>



<p>Having your own C-Folios™ , the token that acts as a portfolio for your LP and stablecoin investments has <strong>multiple advantages</strong>.&nbsp;</p>



<p>All annual earnings, collectables and LP values can go into your own unique SFT C-Folios™. Everything in that C-Folios™ can be managed by you, whether you take your rewards out or you take your investment NFTS out, <strong>each element can be sold separately OR together</strong> by you as a user at any time.</p>



<p>The next user of your C-Folios™ can then have all your collectables, rewards and value and use it again as they wish on the WOWS platform.</p>



<figure class="wp-block-embed aligncenter is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="WOWS C-FOLIO - HOW TO TRADE" width="500" height="281" src="https://www.youtube.com/embed/VESlm5umX1g?start=3&#038;feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>
</div></figure>



<p>Other more serious future financial applications can be found such as the CRO (<strong>Collateralised Rewards Obligation</strong>) a new term created by the WOWS team and made possible by using the SFTs.</p>



<p>This involves the ability to collect multiple stacked LP investment NFTs with a high risk but high rewards percentage and stable coin investments NFTs with a low risk (and slightly lower rewards percentage) &#8211; and spread a ratio of risk in one financial vehicle so there is more chance of higher profits since there is also a bigger buffer that serves as collateral.&nbsp;</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1548" height="748" src="http://nfcms1/app/uploads/2021/05/wolves-of-wall-street-apy.jpg" alt="wolves of wall street apy" class="wp-image-4784" srcset="http://nfcms1:80/app/uploads/2021/05/wolves-of-wall-street-apy.jpg 1548w, http://nfcms1:80/app/uploads/2021/05/wolves-of-wall-street-apy-300x145.jpg 300w, http://nfcms1:80/app/uploads/2021/05/wolves-of-wall-street-apy-1024x495.jpg 1024w, http://nfcms1:80/app/uploads/2021/05/wolves-of-wall-street-apy-768x371.jpg 768w, http://nfcms1:80/app/uploads/2021/05/wolves-of-wall-street-apy-1536x742.jpg 1536w" sizes="(max-width: 1548px) 100vw, 1548px" /></figure></div>



<p>This possibility of new ways to utilize SFTs in the financial sector has caught the attention of some influential people in the Financial sector namely <strong>Massimo Buonomo</strong> <strong>the Former UN Global expert in BlockchAIot</strong>, blockchain and a current advisor and consultant for international organizations, central banks and corporates, as well as financial institutions in Dubai.</p>



<p><strong>Other future use cases</strong>, already in the roadmap beyond the Lp staking and stable lending investment NFTs are clear:</p>



<ul><li>Being able to own a fraction of an NFT like real estate.</li><li>Using SFT as collateral for a loan.</li><li>Create a SaaS for artists who want to create C-Folios from their own work.</li><li>Automating Yield Farming with several protocols (such as Curve, Yearn.finance, etc.) to avoid the need to manually stake and unstake your funds.</li></ul>



<h2>Upcoming news and events for WOWS.</h2>



<p>The team are currently building up to their imminent launch of their stablecoin and <strong>LP staking C-folio dApp </strong>where the core features of the C-Folio will be revealed. The 2nd batch of 280 new C-Folios are available for purchase.</p>



<p><strong>As the first pre-sale sold out very quickly, it is important to remind those who are interested that it is necessary to pay in $WOWS to get in.</strong></p>



<p>To add a layer of security upstream, The Wolves of Wall Street made a partnership with <strong>COVER</strong> recently in order to be able <strong>to ensure the investments</strong>. Other partnerships are in the pipeline but it will be necessary to watch out for official announcements from the team.</p>



<p>The team have also announced a very important strategic partnership with <strong>NFY.finance</strong> and their owners <strong>MIMIR CORPORATION</strong>. MIMIR is fast positioning itself as a major player in the DeFi and blockchain scene, having just been announced as an official collaborative partner of the <strong>Geometric Space Corp</strong> and now infamous Dogecoin Cubesat Space X Launch in July 2022.</p>



<p>WOWS &amp; NFY will actively cross collaborate on new projects under the MIMIR brand. Cyotee and MIMIR Devs will help push through certain new features on the WOWS platform, whilst also working together with the WOWS team to <strong>create a shared token pool</strong> and <strong>other unique C-Folios will be created</strong> to represent the new team members of MIMIR.</p>



<p><strong>And of course the biggest event after the platform launch is the World&#8217;s First Global <a href="https://defiinvestmentsummit.com/" target="_blank" rel="noreferrer noopener">DeFi Summit</a> in Dubai on the 2-3rd of June</strong>, where the founders of WOWS tristan and Mateen will be presenting WOWS to affluent investors and mixing and meeting with many of the leaders in the blockchain sector.</p>



<h2>The Team Presentation</h2>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1878" height="624" src="http://nfcms1/app/uploads/2021/05/wolves-of-wall-street-team.jpg" alt="wolves of wall street team" class="wp-image-4781" srcset="http://nfcms1:80/app/uploads/2021/05/wolves-of-wall-street-team.jpg 1878w, http://nfcms1:80/app/uploads/2021/05/wolves-of-wall-street-team-300x100.jpg 300w, http://nfcms1:80/app/uploads/2021/05/wolves-of-wall-street-team-1024x340.jpg 1024w, http://nfcms1:80/app/uploads/2021/05/wolves-of-wall-street-team-768x255.jpg 768w, http://nfcms1:80/app/uploads/2021/05/wolves-of-wall-street-team-1536x510.jpg 1536w" sizes="(max-width: 1878px) 100vw, 1878px" /></figure></div>



<p>Appearing in late 2020, The Wolves of Wall Street team <strong>does not hide behind anonymity</strong> and makes themselves known from the <a href="https://wolvesofwallstreet.medium.com/unleashing-the-wolves-ece415252ea5" target="_blank" rel="noreferrer noopener">first article</a> on their Medium page:</p>



<ul><li><strong>Tristan</strong> (<a href="https://twitter.com/TristanVert" target="_blank" rel="noreferrer noopener">@TristanVert</a>) &#8211; Lead Project Manager : Investor since 2017 in cryptos, he has experienced the worst and the best aspects of management related to ICOs. He has notably developed Dapp related to DeFI since such as: NFY.finance, XMM.momentum, and Yeld.io&nbsp;</li><li><strong>Markus </strong>(<a href="https://twitter.com/peak3d1" target="_blank" rel="noreferrer noopener">@peak3d1</a>) &#8211; Full Stack Developer : After 35 years in different positions as CTO or Lead of Innovation.</li><li><strong>Garret </strong>(<a href="https://twitter.com/eigendude1" target="_blank" rel="noreferrer noopener">@eigendude1</a>) &#8211; Lead Solidity Dev : formerly streaming engineering, embedded systems engineering and most recently climate tech engineering.</li><li><strong>Mateen </strong>(<a href="https://twitter.com/Mateen_OD" target="_blank" rel="noreferrer noopener">@Mateen_OD</a>) &#8211; Marketing Manager, experienced innovator, entrepreneur and product developer with working experience in the fields of entertainment, music, tourism and crypto.</li><li><strong>Danny </strong>(<a href="https://twitter.com/Danzel62598317" target="_blank" rel="noreferrer noopener">@Danzel62598317</a>) &#8211; Marketing manager (ASIA)</li></ul>



<p>Proud of their skill set and respective experiences, The Wolves of Wall Street puts themselves forward to show that “<strong>they have nothing to hide</strong>” in a Universe where the risks are very numerous.</p>



<p>DeFI is an <strong>extremely young environment</strong> and that is why the team wants to be <strong>reassuring and authentic</strong> about themselves and the implementation and <strong>security of their project.</strong></p>



<h2>A powerful DeFi tool</h2>



<p>Although it is mainly the NFT art sector that has been talked about since the beginning of the year, this use of semi-fungible tokens in such <strong>an innovative way</strong> is particularly interesting for all who operate in the Decentralized Finance sector.</p>



<p>By specializing in DeFI to offer increasingly powerful tools, The Wolves of Wall Street have managed to create <strong>a very powerful financial project in record time</strong>. Indeed, as we said above, such intensive use of Decentralized Finance is still very young in the crypto ecosystem, which tends to make investors wary.&nbsp;</p>



<p>But the Wolves of Wall Street are <strong>reaching out directly to experts</strong> to make it easier for traders to do create new opportunities in DeFi and <strong>for beginner investors</strong>, a visually led fun interactive process to make their first steps.</p>



<p><strong>It will be necessary to observe the results of various C-folios to form an opinion on their effectiveness and to make a choice according to their chosen strategy!</strong></p>



<p class="has-vivid-red-color has-text-color">Disclaimer: This is a sponsored article. No content or article should be considered as financial advice. We strongly recommend you to conduct due diligence and always do your own research before investing in a project.</p>


An underestimated use of NFTs is their link with the world of DeFi (Decentralized Finance). A few projects exist but an effective balance between finance and the visual flora of the NFT world is sometimes difficult to find…This is something Wolves of Wall Street intends to solve!

The Wall Street that is built on NFTs & SFTs


<p>The NFT space has been booming, and, while most of the media&#8217;s attention might have been focused on big brands names and celebrities discovering this new technology, some projects were headed down building <strong>to deliver new features and use cases</strong>.</p>



<p><a href="https://www.aavegotchi.com/" target="_blank" rel="noreferrer noopener">Aavegotchi</a> is one such project that we have covered as being one of the most ambitious,&nbsp;forging its way forward in “<strong>gamifying DeFi</strong>”. Since instantly selling out the first batch of little pixelated ghosts during the first Haunt in early March, this blockchain game has already implemented some novel concepts:</p>



<ul><li>Rarity Farming: where Aavegotchi holders are awarded with $GHST depending on their ghost’s rarity and game involvement</li><li>NFT badges: empowering the most active community members with some unique insignia.</li></ul>



<p>However, <strong>this is only the very beginning of the Aavegotchi adventure</strong>. According to the project&#8217;s recently unveiled roadmap, there is much more to come!</p>



<h2><strong>Rarity Farming</strong></h2>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="952" height="620" src="http://nfcms1/app/uploads/2021/05/aavegotchi-rarity-farming.png" alt="aavegotchi rarity farming" class="wp-image-4733" srcset="http://nfcms1:80/app/uploads/2021/05/aavegotchi-rarity-farming.png 952w, http://nfcms1:80/app/uploads/2021/05/aavegotchi-rarity-farming-300x195.png 300w, http://nfcms1:80/app/uploads/2021/05/aavegotchi-rarity-farming-768x500.png 768w" sizes="(max-width: 952px) 100vw, 952px" /></figure></div>



<p>Rarity Farming, whose first season started on April 20, is a massive play-to-play that rewards Aavegotchi holders in three categories:</p>



<ul><li>Kinship</li><li>XP</li><li>Rarity Score</li></ul>



<p>The higher in the leaderboard the Aavegotchi, the better the reward! In addition, due (or thanks) to the postponement of Haunt 2, therefore only 10,000 Aavegotchi were eligible to participate in the first <a href="https://aavegotchi.medium.com/aavegotchi-rarity-farming-season-1-rewards-finalized-2db81e9f66e8" target="_blank" rel="noreferrer noopener">Rarity Farming event</a> event.&nbsp;</p>



<p>The total prize pool for the first season is 1.4MM $GHST, and the rewards are paid at the end of each round (there are four rounds for this season).<br><br>As the first round came to a close last week, 350,000 $GHST was distributed to the top-5000 Aavegotchis from each category. Given that there are less than 6500 Gotchis summoned in total, <strong>the vast majority of Gotchis were eligible for a reward!</strong><br><br>The rarest and most experienced ghost was able to collect over 24,583 GHST ( or ~ $38,955 at the time) — but <strong>we wouldn’t expect less from a Gotchi called Winklevoss</strong>.</p>



<p>Another highlight from the first round is a Gotchi named FELON, who took third place in rarity ranking after equipping their best attire just minutes before the snapshot was taken, shocking many of his rivals. He then immediately disappeared after the snapshot, returning to the shadows.</p>



<h2><strong>Pocket wallet and more features to come</strong></h2>



<p>To be able to collect the Rarity Farming rewards as smoothly as possible, the team behind Aavegotchi have developed several tools, one of which is the “pocket wallet”. This wallet is a bit special because… <a href="https://aavegotchi.medium.com/the-first-nft-wallet-on-polygon-is-aavegotchi-b24cac01a1d9" target="_blank" rel="noreferrer noopener">it makes Aavegotchis wallets themselves!</a></p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1600" height="855" src="http://nfcms1/app/uploads/2021/05/aavegotchi-pocket.png" alt="aavegotchi pocket" class="wp-image-4732" srcset="http://nfcms1:80/app/uploads/2021/05/aavegotchi-pocket.png 1600w, http://nfcms1:80/app/uploads/2021/05/aavegotchi-pocket-300x160.png 300w, http://nfcms1:80/app/uploads/2021/05/aavegotchi-pocket-1024x547.png 1024w, http://nfcms1:80/app/uploads/2021/05/aavegotchi-pocket-768x410.png 768w, http://nfcms1:80/app/uploads/2021/05/aavegotchi-pocket-1536x821.png 1536w" sizes="(max-width: 1600px) 100vw, 1600px" /></figure></div>



<p>Rather than receiving the $GHST from Rarity Farming directly into its metamask wallet,<strong> the rewards went straight to Aavegotchi&#8217;s pockets</strong>. Thanks to this new way of distributing assets, we can say that this is the first time on the Polygon network that <strong>an NFT also serves as a wallet!</strong></p>



<p>Knowing that the Gotchi pockets were already used to keep their NFT wearables, all that was missing was fungible assets to complete their usefulness as a true decentralized companion for players.</p>



<p>This milestone is just one example of the upcoming features to make this game <strong>even richer than it already is</strong>. With the unveiling of the <a href="https://aavegotchi.medium.com/aavegotchi-development-roadmap-v2-15820dcf84de" target="_blank" rel="noreferrer noopener">V2 roadmap</a>, many more things were announced, here is a summary of the features we expect the most:</p>



<h3><strong>Phase 1 (Q2-Q4 2021)</strong></h3>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1200" height="675" src="http://nfcms1/app/uploads/2021/05/aavegotchi-roadmap-phase-1.jpg" alt="aavegotchi roadmap phase 1" class="wp-image-4729" srcset="http://nfcms1:80/app/uploads/2021/05/aavegotchi-roadmap-phase-1.jpg 1200w, http://nfcms1:80/app/uploads/2021/05/aavegotchi-roadmap-phase-1-300x169.jpg 300w, http://nfcms1:80/app/uploads/2021/05/aavegotchi-roadmap-phase-1-1024x576.jpg 1024w, http://nfcms1:80/app/uploads/2021/05/aavegotchi-roadmap-phase-1-768x432.jpg 768w" sizes="(max-width: 1200px) 100vw, 1200px" /></figure></div>



<ul><li>Polygon to Ethereum NFT Bridges</li><li>NFT ‘Aauctions’</li><li>Haunt 2 (planned)</li><li>Aavegotchi ‘Aarcade’ Mini-game hub</li><li>REALM Gotchiverse Alpha Launch</li></ul>



<h3><strong>Phase 2 (Q1 2022 &#8211; Q4 2023)</strong></h3>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1200" height="675" src="http://nfcms1/app/uploads/2021/05/aavegotchi-roadmap-phase-2.jpg" alt="aavegotchi roadmap phase 2" class="wp-image-4730" srcset="http://nfcms1:80/app/uploads/2021/05/aavegotchi-roadmap-phase-2.jpg 1200w, http://nfcms1:80/app/uploads/2021/05/aavegotchi-roadmap-phase-2-300x169.jpg 300w, http://nfcms1:80/app/uploads/2021/05/aavegotchi-roadmap-phase-2-1024x576.jpg 1024w, http://nfcms1:80/app/uploads/2021/05/aavegotchi-roadmap-phase-2-768x432.jpg 768w" sizes="(max-width: 1200px) 100vw, 1200px" /></figure></div>



<ul><li>Aavegotchi Mobile App alpha launch</li><li>REALM Public Land Sales</li><li>More Haunts (planned)</li></ul>



<h3><strong>Phase 3 (Q1 2024 and beyond)</strong></h3>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1200" height="675" src="http://nfcms1/app/uploads/2021/05/aavegotchi-roadmap-phase-3.jpg" alt="aavegotchi roadmap phase 3" class="wp-image-4731" srcset="http://nfcms1:80/app/uploads/2021/05/aavegotchi-roadmap-phase-3.jpg 1200w, http://nfcms1:80/app/uploads/2021/05/aavegotchi-roadmap-phase-3-300x169.jpg 300w, http://nfcms1:80/app/uploads/2021/05/aavegotchi-roadmap-phase-3-1024x576.jpg 1024w, http://nfcms1:80/app/uploads/2021/05/aavegotchi-roadmap-phase-3-768x432.jpg 768w" sizes="(max-width: 1200px) 100vw, 1200px" /></figure></div>



<ul><li>REALM Public Land Sales</li><li>Aavegotchi Minigame Builder</li><li>Aavegotchi Hardware Wallet</li></ul>



<p>As it is difficult to be completely precise over such a long time scale, so these dates may alter but if so the teams will make the necessary announcements to warn everyone.</p>



<h2><strong>Boosting the NFT industry at large</strong></h2>



<p>In just under a few months, Aavegotchi has been able to demonstrate creativity, responsiveness and resilience via various updates, sometimes planned, sometimes voted by the DAO. Little by little, the game continues to evolve and the community starts delivering additional content such as mini-games that help earn extra XP for the Gotchis.</p>



<p>The announcements made during the Roadmap V2 unveiling event are a good reminder that despite amassing a very active community in a matter of months, the game itself is at the very early stages of development.</p>



<p><strong>Considering the attentiveness with which the Aavegotchi ecosystem is being built, it seems that once the “Gotchiverse” is out, the NFT industry will see even more financial opportunities and technical features that might eventually become mainstream.</strong></p>



<p class="has-vivid-red-color has-text-color">Disclaimer: This is a sponsored article. No content or article should be considered as financial advice. We strongly recommend you to conduct due diligence and always do your own research before investing in a project.</p>


From on-chain metaverse construction to bi-weekly payouts, here’s what Aavegotchi has been up to since mainnet launch

New Aavegotchi Roadmap reveals bright on-chain future


<p>After a particularly successful first portal haunt (everything sold out in less than 2 minutes), the time has come to take stock of this first Haunt as well as the various sales made on <a href="https://aavegotchi.com/" target="_blank" rel="noreferrer noopener">Aavegotchi</a>’s secondary market.</p>



<p>Don&#8217;t know what a Haunt or an Aavegotchi is? Do not hesitate to (re-)<a href="https://nonfungible.com/news/defi/aavegotchi-the-missing-link-between-nft-and-gaming">read the article we wrote</a> on the subject where we detail all the fundamental aspects of <strong>this game mixing NFT x DeFI</strong>!</p>



<p>For months, everything has been designed so that this first Haunt delivers 10,000 portals and with a hype having reached an unprecedented level, <strong>more than 25,000 users</strong> connected to the site at the same time! Many users who were waiting for their digital ghost were therefore disappointed and the influx was such that even some core team members did not succeed in getting any portals!</p>



<p>While the <a href="https://snapshot.org/#/aavegotchi.eth" target="_blank" rel="noreferrer noopener">AavegotchiDAO</a> is discussing a potential second Haunt, let&#8217;s take a closer look at the activity of the <a href="https://aavegotchi.com/baazaar" target="_blank" rel="noreferrer noopener">Baazaar</a>, <strong>Aavegotchi&#8217;s secondary market!</strong></p>



<h2>An already very active secondary market</h2>



<p>As soon as the Haunt 1 began, the Aavegotchi Baazaar immediately turned into one of the <strong>most important and fun features</strong> of the game. Exploring the various portals, wearables and Aavegotchis has become an addicting past time for many.</p>



<p>In just over two weeks, the Baazaar volume has <strong>exceeded 7.8 million $GHST (currently worth around 12M USD) </strong>as players trade everything from wizard hats and trait boosting potions to unopened portals and waifu pillows.&nbsp;</p>



<p>Indeed, haggling can go a long way — especially when it&#8217;s gas-free and powered by Polygon, the L2 solution Pixelcraft Studios chose to launch Aavegotchi on.&nbsp;</p>



<div class="wp-block-image"><figure class="aligncenter size-full is-resized"><img loading="lazy" src="http://nfcms1/app/uploads/2021/03/aavegotchi-top-10.png" alt="" class="wp-image-3754" width="580" height="401" srcset="http://nfcms1:80/app/uploads/2021/03/aavegotchi-top-10.png 1536w, http://nfcms1:80/app/uploads/2021/03/aavegotchi-top-10-300x207.png 300w, http://nfcms1:80/app/uploads/2021/03/aavegotchi-top-10-1024x708.png 1024w, http://nfcms1:80/app/uploads/2021/03/aavegotchi-top-10-768x531.png 768w" sizes="(max-width: 580px) 100vw, 580px" /></figure></div>



<p>To illustrate the magnitude of the demand the Baazaar is experiencing, here are the top ten biggest sellers so far:</p>



<h3>1 &#8211; Portal #1 &#8211; 75000 $GHST</h3>



<p>Owning the first portal from the first haunt is much like owning the Genesis tweet, and can be worth a lot more in the future as the Aavegotchi realm unfolds. Just remember that <strong>there is Portal #0 out there too</strong>, currently listed in the Baazaar for 500,000 $GHST ?.</p>



<h3>2 &#8211; Godlike Stani Hair &#8211; 70000 $GHST</h3>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="247" src="http://nfcms1/app/uploads/2021/03/aavegotchi-stani-hair.png" alt="aavegotchi stani hair" class="wp-image-3745" srcset="http://nfcms1:80/app/uploads/2021/03/aavegotchi-stani-hair.png 1280w, http://nfcms1:80/app/uploads/2021/03/aavegotchi-stani-hair-300x58.png 300w, http://nfcms1:80/app/uploads/2021/03/aavegotchi-stani-hair-1024x198.png 1024w, http://nfcms1:80/app/uploads/2021/03/aavegotchi-stani-hair-768x148.png 768w" sizes="(max-width: 1280px) 100vw, 1280px" /></figure></div>



<p>There are only five wearables dedicated to <strong>Aave founder Stani Kulchov’s </strong>well-groomed mop and one of them just went for $107,000 USD value at time of sale on March 20th!&nbsp;</p>



<p>This marks a new all time high for any wearable item in the Aavegotchi universe. The Stani Hair item <strong>boosts Brain Size by 3 points</strong> and <strong>chills your gotchi with -3 Aggression</strong>. On top of these individual trait boosters, all Godlike rarities offer an additional +50 to the Aavegotchi’s Base Rarity Score (BRS).</p>



<h3>3 &#8211; Portal #2 &#8211; 60000 $GHST</h3>



<p>We imagine it felt similar to buying Portal #1, but with a nice discount. Super OG vibes all around.</p>



<h3>4 &#8211; Godlike Wizard Hat &#8211; 55000 $GHST</h3>



<h3>5 &#8211; Godlike Wizard Hat &#8211; 38000 $GHST</h3>



<p>There is a <strong>sizable gap</strong> between the fourth and fifth biggest sellers, although they represent the same wearable (but different copies, as proven by the blockchain) &#8211; a prime example of the power of bargaining (and timing) on a secondary market.</p>



<p><strong>Only five of this Godlike version of the classic Wizard Hat</strong> exist and each offers powerful trait boosters. Equipping one grants your Aavegotchi <strong>+2 Spookiness</strong> and <strong>+4 Brain Size</strong>. Simply put, these are the best Wizard hats a gotchi can wear.</p>



<h3>6 &#8211; Aavegotchi: Big Bang (ID: 67) &#8211; 45000 $GHST</h3>



<div class="wp-block-image"><figure class="aligncenter size-full is-resized"><img loading="lazy" src="http://nfcms1/app/uploads/2021/03/aavegotchi-big-bang.png" alt="aavegotchi big bang" class="wp-image-3740" width="580" height="399" srcset="http://nfcms1:80/app/uploads/2021/03/aavegotchi-big-bang.png 804w, http://nfcms1:80/app/uploads/2021/03/aavegotchi-big-bang-300x207.png 300w, http://nfcms1:80/app/uploads/2021/03/aavegotchi-big-bang-768x529.png 768w" sizes="(max-width: 580px) 100vw, 580px" /></figure></div>



<p>The new twitter bot (<a href="https://twitter.com/GotchiBot" target="_blank" rel="noreferrer noopener">@gotchibot</a>) is an amazing resource for following r<strong>eal-time trading of Aavegotchis</strong> (not wearables and portals yet). This weekend, the twitter handle broke the news of a new all-time high selling Aavegotchi named <strong>BIG BANG</strong>. Other than a great name, it’s stats reveal more insights into why this Aavegotchi just sold for 45,000 $GHST!</p>



<p>Traits range from 0-100 and this gotchi loves the high 90’s with <strong>near perfect eye shape</strong> (TUSD themed) and based aggression scores. This is enough to lock in a <strong>569 Base Rarity Score </strong>and its additional wearables are currently resulting in a <strong>very impressive 583 Rarity Score</strong>.&nbsp;</p>



<h3>7 &#8211; Aavegotchi: Unicron (ID 8062) &#8211; 35000 $GHST</h3>



<div class="wp-block-image"><figure class="aligncenter size-full is-resized"><img loading="lazy" src="http://nfcms1/app/uploads/2021/03/aavegotchi-uni.png" alt="aavegotchi uni" class="wp-image-3747" width="580" height="415" srcset="http://nfcms1:80/app/uploads/2021/03/aavegotchi-uni.png 1043w, http://nfcms1:80/app/uploads/2021/03/aavegotchi-uni-300x215.png 300w, http://nfcms1:80/app/uploads/2021/03/aavegotchi-uni-1024x733.png 1024w, http://nfcms1:80/app/uploads/2021/03/aavegotchi-uni-768x550.png 768w" sizes="(max-width: 580px) 100vw, 580px" /></figure></div>



<p><strong>Unicron</strong> (assumedly named with a nod to Transformers and Uniswap at the same time) is currently wielding a pickaxe while casually holding a cozy coconut drink in the other hand. It’s personality traits reveal a very cuddly spookiness rating that is balanced by high aggression at the same time! Also, those 99 mythical eyes on a <strong>UNI-staked Gotchi</strong> are indeed priceless.&nbsp;&nbsp;</p>



<h3>8 &#8211; Llamacorn T-shirt&nbsp; &#8211; 34000 $GHST</h3>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1088" height="87" src="http://nfcms1/app/uploads/2021/03/aavegotchi-llamacorn-shirt.png" alt="aavegotchi llamacorn shirt" class="wp-image-3743" srcset="http://nfcms1:80/app/uploads/2021/03/aavegotchi-llamacorn-shirt.png 1088w, http://nfcms1:80/app/uploads/2021/03/aavegotchi-llamacorn-shirt-300x24.png 300w, http://nfcms1:80/app/uploads/2021/03/aavegotchi-llamacorn-shirt-1024x82.png 1024w, http://nfcms1:80/app/uploads/2021/03/aavegotchi-llamacorn-shirt-768x61.png 768w" sizes="(max-width: 1088px) 100vw, 1088px" /></figure></div>



<p>Inspired by <strong>the one and only Vitalik</strong> and his knack distinct fashion, this is one of only five Llamacorn t-shirts existing in the Aavegotchi metaverse. A real-life version of Vitalik’s signature t-shirt might go for even more, but how would you know whether it is really his if it’s not on the blockchain?&nbsp;</p>



<div class="wp-block-image"><figure class="aligncenter size-full is-resized"><img loading="lazy" src="http://nfcms1/app/uploads/2021/03/aavegotchi-dynamic-onchain-data.png" alt="aavegotchi dynamic onchain data" class="wp-image-3742" width="580" height="352" srcset="http://nfcms1:80/app/uploads/2021/03/aavegotchi-dynamic-onchain-data.png 1152w, http://nfcms1:80/app/uploads/2021/03/aavegotchi-dynamic-onchain-data-300x182.png 300w, http://nfcms1:80/app/uploads/2021/03/aavegotchi-dynamic-onchain-data-1024x622.png 1024w, http://nfcms1:80/app/uploads/2021/03/aavegotchi-dynamic-onchain-data-768x467.png 768w" sizes="(max-width: 580px) 100vw, 580px" /></figure></div>



<p>This body type wearable can be equipped to help move your Aavegotchi’s Energy and Aggression traits further along the left side of the personality bell curve. If your gotchi is ready to to get zenned out, Llamacorn is the shirt!</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1476" height="426" src="http://nfcms1/app/uploads/2021/03/aavegotchi-comparaison.png" alt="aavegotchi comparaison" class="wp-image-3741" srcset="http://nfcms1:80/app/uploads/2021/03/aavegotchi-comparaison.png 1476w, http://nfcms1:80/app/uploads/2021/03/aavegotchi-comparaison-300x87.png 300w, http://nfcms1:80/app/uploads/2021/03/aavegotchi-comparaison-1024x296.png 1024w, http://nfcms1:80/app/uploads/2021/03/aavegotchi-comparaison-768x222.png 768w" sizes="(max-width: 1476px) 100vw, 1476px" /></figure></div>



<h3>9 &#8211; Aavegotchi: YFI (ID 1306) &#8211; 32000 $GHST</h3>



<p>Tying for ninth and tenth are two Gotchis with roughly the same BRS. The first here is “YFI” It needs some clothes but is boasting an impressive base of 567. <strong>Get this YFI-staked Aavegotchi a few wearables </strong>and watch it climb the charts!</p>



<h3>10 &#8211; Aavegotchi: THE WEEKND (ID 2348) &#8211; 32000 $GHST</h3>



<p>“The Weeknd” is currently placed in the top-20 of kinships with a “Chummy” 78 kinship score. Someone is getting pet everyday! What’s more, it has clearly established itself as the gotchi with the <strong>best array of equipped wearables</strong> on today’s list.</p>



<h2>Aavegotchi NFTs farm $GHST tokens</h2>



<p>Aavegotchis and their various NFT game items are <strong>100% on-chain collectible</strong> art but they are also full of competitive gaming utility. All the traits and rarity scores described above play a role in the soon to launch first season of Rarity Farming. This is a game of rarity that looks at all the available on-chain metadata <strong>to determine which gotchis are the rarest, happiest and most active</strong>. A massive 1.4 Million $GHST tokens are already secured (40% of the launch drop sales total) in a rewards pool for the first season, starting on <strong>April 20th, 2021!</strong></p>



<p>By virtue of existing, <strong>all Aavegotchis will automatically be entered</strong> into this first season of Rarity Farming. For your part, you want to help your gotchis climb three different leaderboards that measure different aspects of each Aavegotchi and reward them with GHST in kind:</p>



<ol><li>Rarity Score</li><li>Kinship Score</li><li>XP Score</li></ol>



<p>The rarity leaderboard looks at your Aavegotchi + any equipped wearables to determine where your gotchi ranks amongst its peers. <strong>You want to achieve as high of a rarity score as possible.</strong></p>



<p>Kinship simply looks at the top kinship scores across all Aavegotchis and ranks accordingly. Boost this by interacting with your Aavegotchi once every 12 hours. <strong>Pet it, change it’s clothes or whatever you like</strong> because each on-chain interaction is affordable thanks to Aavegotchi deploying onto Ethereum’s layer 2 solution Polygon (formerly known as Matic Network).</p>



<p>XP is earned through <strong>community engagement</strong>. By voting in the DAO’s core proposals or attending sanctioned virtual events in the Discord or elsewhere, your Aavegotchi becomes eligible to earn XP and level up.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="763" height="421" src="http://nfcms1/app/uploads/2021/03/aavegotchi-rarity-farming.png" alt="aavegotchi rarity farming" class="wp-image-3744" srcset="http://nfcms1:80/app/uploads/2021/03/aavegotchi-rarity-farming.png 763w, http://nfcms1:80/app/uploads/2021/03/aavegotchi-rarity-farming-300x166.png 300w" sizes="(max-width: 763px) 100vw, 763px" /></figure></div>



<p>The first season is distributing the entirety of the 1.4 Million $GHST over an 8 week period. <strong>Every two weeks an on-chain snapshot occurs</strong> to see where your Aavegotchi ranks on the charts. Payouts follow each round and a final bonus round is being funded to the tune of 50,000 $GHST by the core dev team Pixelcraft Studios. These additional $GHST will be awarded to the <strong>Aavegotchis that performed best </strong>on a cumulative basis across all four rounds!</p>



<p>The highest earning Aavegotchis stand to harvest <strong>tens of thousands of dollars worth of $GHST</strong> while the distribution curve also offers a long tail of rewards so that the top 5000 Aavegotchis (nearly all currently summoned gotchis!) can enjoy farming across each of the three categories.&nbsp;</p>



<p>Basically, if you have an Aavegotchi and are putting in some basic effort to engage with it, you can expect a clean shot at farming rarity this April!</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1600" height="562" src="http://nfcms1/app/uploads/2021/03/aavegotchi-wearables-set.png" alt="aavegotchi wearables set" class="wp-image-3748" srcset="http://nfcms1:80/app/uploads/2021/03/aavegotchi-wearables-set.png 1600w, http://nfcms1:80/app/uploads/2021/03/aavegotchi-wearables-set-300x105.png 300w, http://nfcms1:80/app/uploads/2021/03/aavegotchi-wearables-set-1024x360.png 1024w, http://nfcms1:80/app/uploads/2021/03/aavegotchi-wearables-set-768x270.png 768w, http://nfcms1:80/app/uploads/2021/03/aavegotchi-wearables-set-1536x540.png 1536w" sizes="(max-width: 1600px) 100vw, 1600px" /></figure></div>



<p>The best resource for preparing is the community maintained wiki: <a href="https://wiki.aavegotchi.com" target="_blank" rel="noreferrer noopener">wiki.aavegotchi.com</a> and more specifically, be sure to check out <a href="https://wiki.aavegotchi.com/en/wearables" target="_blank" rel="noreferrer noopener">the master list of all wearables</a> and <strong>their various trait boosting effects</strong>!&nbsp;</p>



<p>The top ten sales in the Baazaar will likely continue to shift a lot as Rarity Farming kicks into effect. <strong>Expect new wearables and more Aavegotchi</strong> to populate our world soon enough. We can’t wait to see what comes next!</p>



<h2>Getting started with Aavegotchi</h2>



<p>Aavegotchis are on-chain collectible ghosts staked with <strong>Aave’s interest-generating aTokens </strong>(known as maTokens on layer 2).</p>



<p>Compete for player rewards by earning XP, leveling up, and increasing the rarity of your Aavegotchi fren. Aavegotchi is governed by the <strong>AavegotchiDAO</strong> via the native eco-governance token $GHST. Summon your first Aavegotchi and join the future of DeFi-staked NFT avatars!</p>



<p>Explore the Baazaar and play now at <a href="https://aavegotchi.com/" target="_blank" rel="noreferrer noopener">Aavegotchi.com</a></p>



<p>Join the conversation at <a href="https://discord.com/invite/aavegotchi" target="_blank" rel="noreferrer noopener">Aavegotchi Discord </a>or <a href="https://t.me/aavegotchi" target="_blank" rel="noreferrer noopener">Telegram</a></p>



<h2>Conclusion</h2>



<p>Thanks to its Polygon (formerly Matic) roots, anyone can enjoy this blockchain game without worrying about the fees. However, we must not forget that Aavegotchi is still only at its launch and that even if the expectations surrounding the game are high, <strong>the project will continue to solidify over time</strong>.</p>



<p>This top 10 of the best sellers is only the submerged part of the iceberg of the secondary market, it should also be remembered that the <strong>Maall</strong> (primary market for accessories) is currently sold out and that all of the items are being exchanged today in the Baazaar! The community is strongly encouraged to participate in discussions on the forum or the project Discord in order to best define the future of Aavegotchi. </p>



<p><strong>This first haunt was only the launching stage and there is still a lot to build in this new emerging multiverse!</strong></p>



<p class="has-vivid-red-color has-text-color">Disclaimer: This is a sponsored article. No content or article should be considered as financial advice. We strongly recommend you to conduct due diligence and always do your own research before investing in a project.</p>


Aavegotchi’s dedicated NFT marketplace sees over 11 Million USD worth of volume in the first two weeks.

The top 10 biggest sales in the Aavegotchi Baazaar


<p>One of the concepts emerging in the world of NFTs is “<strong>DeFi Gamification</strong>”. These terms refer to the art of making the sometimes complex mechanisms of <strong>Liquidity Mining</strong> and <strong>Yield Farming</strong> playful, an exercise that many projects have been attempting since 2020.</p>



<p>In October 2020, we spoke<a href="https://nonfungible.com/news/defi/the-troubled-marriage-between-nfts-and-defi" target="_blank" rel="noreferrer noopener"> in an article about this alliance</a> being formed between these two universes but at that time the bond still seemed very new. Among the projects that have succeeded in building a community around the potential of NFT x DeFi applications is Aavegotchi.</p>



<p>With the project’s launch in its final stages, it’s the right time to examine the goals <a href="https://www.aavegotchi.com/" target="_blank" rel="noreferrer noopener">Aavegotchi</a> is working to achieve and take a closer look at some of their most innovative features.</p>



<div class="wp-block-image"><figure class="aligncenter size-full is-resized"><img loading="lazy" src="http://nfcms1/app/uploads/2021/02/aavegotchi-meme.png" alt="aavegotchi meme" class="wp-image-3364" width="439" height="510" srcset="http://nfcms1:80/app/uploads/2021/02/aavegotchi-meme.png 439w, http://nfcms1:80/app/uploads/2021/02/aavegotchi-meme-258x300.png 258w" sizes="(max-width: 439px) 100vw, 439px" /></figure></div>



<h2>Presentation of Aavegotchi</h2>



<p>Aavegotchi was announced in July 2020 with a simple concept: <strong>players can use NFTs and mine various cryptos</strong> from <a href="https://aave.com/" target="_blank" rel="noreferrer noopener">Aave Technology</a>. In fact, Aave enables you to have your own tokens whose price is indexed to the original token. For example, a $aDAI has the same characteristics as the $DAI but grows in quantity inside a hodler’s wallet. This is extremely intuitive and only possible because of the yield generated by depositing $DAI on the Aave platform. The Aavegotchi team recognized the potential of staking Aave’s “aTokens” into collectible NFTs and began to build out what has become the incredibly well-layered Aavegotchi experience. </p>



<p>Pixelcraft Studios was formed to build out the central features of Aavegotchi. Their core members include:&nbsp;</p>



<ul><li><strong>Coder Dan</strong>: Known for leading the development of the <a href="https://bullionix.io/" target="_blank" rel="noreferrer noopener">Bullionix</a> marketplace, he also is the brainchild behind Yield Hero,&nbsp; a Dapp that enables users to redirect their yield toward anyone they wish to support..</li><li><strong>Jesse, AKA GldnXross</strong>: An NFT space OG who helped co-found <a href="https://mintable.app/" target="_blank" rel="noreferrer noopener">Mintable.app</a> before going on to team up with Coder Dan to realize his vision for Bullionix, the first ERC721 NFTs staked with ERC20 collateral.&nbsp;</li><li><strong>Xavier Iturralde aka Xibot</strong>: One of the first Crypto Artists to issue a social token, $PIXEL, to buy his works. His pixel art and collaborations in the NFT crypto art space are extensive.</li><li><strong>Nick Mudge</strong>: Co-author of ERC998 which allows in particular to &#8220;link&#8221; a parent NFT to a child NFT.His Diamond Standard is currently gaining significant adoption across the Ethereum space. This standard enables upgradeable contracts while still maintaining best practices.&nbsp;</li><li><strong>JC Crown</strong>: The community lead and thought leader who has been extremely active in the Bitcoin conversation since the earliest of days.</li></ul>



<p>This group, mixing both NFT and DeFI skills, quickly put their ambitions into action, starting with the grassroots: The Community.</p>



<p>The reward for having completed all of Aavegotchi&#8217;s promotional quests were <strong>NFTs for customizing your Aavegotchi</strong> and the game quickly became known to collectors and the crypto curious alike!<br>Each of their Discord’s quests linked to steps for the participant to follow which helped them understand the project in its entirety, some of them required writing a blog post and others ranged from getting your first $GHST to <strong>spawning portals</strong> on the projects testnet.</p>



<p>Newcomers to the project just have to reread the missions to be as well informed as early adopters and if there are any issues, <strong>there is always someone to answer questions on their Discord.</strong></p>



<h2><strong>First steps: participate in the economy</strong></h2>



<p>Before being able to obtain an Aavegotchi, <strong>several steps are necessary for the economic equilibrium</strong> of the project to be achieved. The first of these is to get $GHST which is the only way to buy a portal. GHST is also the AavegotchiDAO’s governance token and can even be staked to obtain NFTs which will be used to personalize your Aavogotchi.</p>



<h3><strong>$GHST : Utility token and yield farming</strong></h3>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="863" height="869" src="http://nfcms1/app/uploads/2021/02/aavegotchi-farmer.png" alt="aavegotchi farmer" class="wp-image-3361" srcset="http://nfcms1:80/app/uploads/2021/02/aavegotchi-farmer.png 863w, http://nfcms1:80/app/uploads/2021/02/aavegotchi-farmer-298x300.png 298w, http://nfcms1:80/app/uploads/2021/02/aavegotchi-farmer-150x150.png 150w, http://nfcms1:80/app/uploads/2021/02/aavegotchi-farmer-768x773.png 768w" sizes="(max-width: 863px) 100vw, 863px" /></figure></div>



<p>$GHST are the utility tokens of the project. You can get $GHST through Uniswap or directly from the site after performing KYC, the price and supply is fixed on a <strong>Bonding Curve</strong>, providing the basis of their DAICO (DAO+ICO) token distribution model.&nbsp;</p>



<p>Their primary role is purchase portals allowing you to obtain Aavegotchi, but they also have another use: <strong>they can be staked to generate $FRENS</strong>, the tokens which enable wearables for your Aavegotchi.</p>



<p>To obtain wearables and personalize your Aavegotchi, it will be necessary to stack $GHST to obtain $FRENS. There are two methods to achieve this:</p>



<p><strong>Method 1</strong>: By storing $GHST directly from the site, the reward is at the ratio of 1 $GHST = 1 $FRENS / per day.</p>



<p><strong>Method 2</strong>: From Uniswap or Quickswap on MATIC, the reward is 14 $FRENS / per day but the method is a little more complicated than simply staking your $GHST.</p>



<p>You will be asked to participate in a liquidity pool that requires staking an equal value in $GHST and $ETH (or $QUICK) to obtain a new ‘LP’ token, meaning <strong>Liquidity Provider</strong>. Depending on the percentage of what your investment in the pool represents, this will define the number of LP tokens obtained. The reward of 14 $FRENS / per day is set on a basis of 1 LP GHST-ETH or GHST-QUICK, <strong>the reward will be allocated depending on the number of LPs you hold</strong>.&nbsp;</p>



<p>The name of this method is ‘<strong>Yield Farming</strong>’: by participating in the liquidity of a project you receive rewards associated with the LP token.</p>



<h3><strong>$FRENS: Raffle tickets</strong></h3>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1210" height="228" src="http://nfcms1/app/uploads/2021/02/aavegotchi-wearables.jpg" alt="aavegotchi wearables" class="wp-image-3367" srcset="http://nfcms1:80/app/uploads/2021/02/aavegotchi-wearables.jpg 1210w, http://nfcms1:80/app/uploads/2021/02/aavegotchi-wearables-300x57.jpg 300w, http://nfcms1:80/app/uploads/2021/02/aavegotchi-wearables-1024x193.jpg 1024w, http://nfcms1:80/app/uploads/2021/02/aavegotchi-wearables-768x145.jpg 768w" sizes="(max-width: 1210px) 100vw, 1210px" /></figure></div>



<p>$FRENS cannot be bought or traded, the only way to get it is by one of the methods listed above.</p>



<p>They have only one purpose, buying tickets which offers the possibility of <strong>obtaining wearables of different rarities</strong>. To ensure greater fairness, the quantity of tickets purchased will give the best chance of getting the price you want, but does not necessarily mean getting something!</p>



<p>Personalizing your Aavegotchi is not just for fashion, <strong>wearables also have other uses</strong>.</p>



<h2><strong>Aavegotchi: decentralized tamagotchis</strong></h2>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1168" height="742" src="http://nfcms1/app/uploads/2021/02/aavegotchi-birth.jpg" alt="aavegotchi birth" class="wp-image-3360" srcset="http://nfcms1:80/app/uploads/2021/02/aavegotchi-birth.jpg 1168w, http://nfcms1:80/app/uploads/2021/02/aavegotchi-birth-300x191.jpg 300w, http://nfcms1:80/app/uploads/2021/02/aavegotchi-birth-1024x651.jpg 1024w, http://nfcms1:80/app/uploads/2021/02/aavegotchi-birth-768x488.jpg 768w" sizes="(max-width: 1168px) 100vw, 1168px" /></figure></div>



<p>One of the great strengths of Aavegotchis is <strong>the balance sought by the team between farming and gaming</strong>. To achieve this the community&#8217;s opinion is regularly asked for but it’s also important to see how the team has thought out and considered what constitutes <strong>the value of an Aavegotchi</strong>.</p>



<h3><strong>Characteristics / Traits</strong></h3>



<p>Each Aavegotchi is an NFT which has its own <a href="https://wiki.aavegotchi.com/en/traits" target="_blank" rel="noreferrer noopener">characteristics</a>. These different character traits also determine a rarity score.</p>



<p>Six in number, the characteristics are as follows:</p>



<ul><li><strong>AGG</strong> = Aggressiveness</li><li><strong>NRG</strong> = Energy</li><li><strong>SPK</strong> = Spookiness</li><li><strong>BRN</strong> = Brain Size</li><li><strong>EYS</strong> = Eye Shape</li><li><strong>EYC</strong> = Eye Color</li></ul>



<p>Apart from the color and shape of the eyes, it will be possible to <strong>modify the characteristics</strong> of the Aavegotchi thanks to experience acquired when playing the mini-games, using consumables or to make them wear certain wearables.</p>



<p>These characteristics <strong>will be taken into account</strong> in particular during the Aavegotchi mini-games offered in the Realm. For Instance more BRN will be better in a meditation game while an important characteristic in NRG makes it more suitable for a running game.</p>



<p>In addition to these different traits, another characteristic should be taken into account: <strong>belonging to Aavegotchi has its own collateral</strong> and as we mentioned above they are also used to mine, but in what way?</p>



<h3><strong>Opening the portals</strong></h3>



<div class="wp-block-image"><figure class="aligncenter size-full is-resized"><img loading="lazy" src="http://nfcms1/app/uploads/2021/02/aavegotchi-portals.gif" alt="aavegotchi portals" class="wp-image-3366" width="580" height="580"/></figure></div>



<p>After <a href="https://wiki.aavegotchi.com/en/portals" target="_blank" rel="noreferrer noopener">opening the portal</a>, the little ghost will randomly take on the colors of $DAI, $LINK, $USDC, $USDT or other Cryptos. <strong>But for it to be truly yours, it will be necessary to hold the Aave collateral associated with the Crypto to finalize the invocation</strong>.</p>



<p>For example, after opening a portal, an Aavegotchi in the colors of the $DAI appears. Depending on its scarcity level, a greater or lesser amount of $aDAI will be required for it to start being used&#8230;and in the process generate interest in $aDAI!</p>



<p>This method of using a token (fungible or not) to earn interest on it is <strong>Liquidity Mining</strong>. Regarding Aavegotchi, the collateral contained in these NFTs are transferable to a new owner in the event of sale!</p>



<h3><strong>Kinship</strong></h3>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1164" height="494" src="http://nfcms1/app/uploads/2021/02/aavegotchi-kinship.png" alt="aavegotchi kinship" class="wp-image-3363" srcset="http://nfcms1:80/app/uploads/2021/02/aavegotchi-kinship.png 1164w, http://nfcms1:80/app/uploads/2021/02/aavegotchi-kinship-300x127.png 300w, http://nfcms1:80/app/uploads/2021/02/aavegotchi-kinship-1024x435.png 1024w, http://nfcms1:80/app/uploads/2021/02/aavegotchi-kinship-768x326.png 768w" sizes="(max-width: 1164px) 100vw, 1164px" /></figure></div>



<p>Another important element is the continuation of the <strong>tamagotchi concept</strong> which consists of having to take care of your Aavegotchi regularly. Infact, each has a <strong>Kinship</strong> level that represents their <strong>loyalty</strong> to you.&nbsp;</p>



<p>This Kinship level will determine boost levels and can be maintained by different methods:</p>



<ul><li>Aavegotchis love to vote. Bring them to City Hall and let it <strong>vote in AavegotchiDAO</strong>;</li><li>Aavegotchis love to eat! <strong>Feed your Aavegotchi consumables</strong> to see its spooky smile;</li><li>Aavegotchis love fashion. Equip your Aavegotchi with <strong>new wearables</strong> to forge a lasting bond;</li><li>Aavegotchis love to play! Take your Aavegotchi out for a romp in the Aavegotchi Realm metaverse and <strong>level it up playing mini-games</strong>.</li></ul>



<p>There is currently no penalty for neglect, but <strong>the more you take care of your Aavegotchi the better it will adore you.</strong>.</p>



<h3><strong>Rarity Farming&nbsp;</strong></h3>



<p>There is another benefit in taking care of your Aavegotchi, that of <a href="https://wiki.aavegotchi.com/en/rarity-farming" target="_blank" rel="noreferrer noopener">increasing its rarity</a>! Your choice of Aavegotchi when summoning, quests, or suitable wearables, will have a direct impact on the rarity of your little ghost. This level of rarity is called the Base Rarity score.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="924" height="924" src="http://nfcms1/app/uploads/2021/02/aavegotchi-karting.png" alt="aavegotchi karting" class="wp-image-3362" srcset="http://nfcms1:80/app/uploads/2021/02/aavegotchi-karting.png 924w, http://nfcms1:80/app/uploads/2021/02/aavegotchi-karting-300x300.png 300w, http://nfcms1:80/app/uploads/2021/02/aavegotchi-karting-150x150.png 150w, http://nfcms1:80/app/uploads/2021/02/aavegotchi-karting-768x768.png 768w" sizes="(max-width: 924px) 100vw, 924px" /></figure></div>



<p>But there is a <strong>second scarcity score</strong>, which is much more dynamic than the first. Called the <strong>Final Rarity</strong> score, this is calculated based on the number of Aavegotchi in the ecosystem with the same specializations as yours.</p>



<p>If all players focus on meditative ghosts and improve the Brain Size characteristic, it will actually become less rare and lower the final rarity score of Aavegotchi with that same specialization.</p>



<p><strong>There is therefore an entire strategic stake in having a well trained Aavegotchi</strong> but also keeping an eye on the others to be sure that yours remains very unique!</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="861" height="331" src="http://nfcms1/app/uploads/2021/02/aavegotchi-metaverse.png" alt="aavegotchi metaverse" class="wp-image-3365" srcset="http://nfcms1:80/app/uploads/2021/02/aavegotchi-metaverse.png 861w, http://nfcms1:80/app/uploads/2021/02/aavegotchi-metaverse-300x115.png 300w, http://nfcms1:80/app/uploads/2021/02/aavegotchi-metaverse-768x295.png 768w" sizes="(max-width: 861px) 100vw, 861px" /></figure></div>



<h2><strong>Aavegotchi is building a whole universe</strong></h2>



<p>Usually, projects that combine DeFi and NFTs are more focused on the financial aspect, providing little value to the overall ecosystem. Although more and more projects are emphasizing the playful side of ‘DeFi Gamification’ for the sole purpose of generating liquidity, <strong>Aavegotchi is creating a much more complete Universe</strong>.</p>



<p>Indeed, the emphasis here is not on the DeFi aspect which is made accessible to anyone but rather on <strong>the importance of the Aavegotchi traits</strong>. This brings a strategic dimension to adopt before buying wearables or blindly investing in all of Aave&#8217;s collateral.</p>



<p>These initiatives which tend to provide <strong>a real use case for NFTs x DeFi</strong> could be reused subsequently, for example in metaverses to bring the concept of ‘Play to Earn’ on to another level!</p>



<p>This requires an excellent knowledge of the economic balance between the available liquidity and rewards for the players, but it seems that Aavegotchi has understood this well and has proposed a project with a long-term vision rather than quick and risky profits.</p>



<p>The launch date for the first generation of <a href="https://www.aavegotchi.com/" target="_blank" rel="noreferrer noopener">Aavegotchis</a> is expected to be announced any day now. It will be very interesting to follow and see how the 100% on-chain Aavegotchis continue to evolve! </p>



<p class="has-vivid-red-color has-text-color">Disclaimer: This is a sponsored article. No content or article should be considered as financial advice. We strongly recommend you to conduct due diligence and always do your own research before investing in a project.</p>


As NFTs are increasingly used in the DeFI environment, Aavegotchi has managed to create their own Universe with a strong community since the start. What exactly does this all-pixel ghost bring to the world of NFTs and more generally, Cryptocurrencies?

Aavegotchi: the missing link between NFTs and Gaming ?


<p>Once upon a time in a large enchanted forest called <strong>Niftyland</strong>, many small tribes lived in harmony. This was thanks to a magical sap contained in all the forests plants and the leaves of the trees had commercial value.</p>



<p>Each tribe had their <strong>own individuality</strong> which sometimes could make them incompatible with neighbouring communities, but since the trees’ resources were abundant they easily found harmony.</p>



<p>One day, a traveler entered the forest and shouted to anyone who could hear him, &#8220;In a few days a Unicorn will appear and will be able to bring you what you need to prosper even better together”.</p>



<p>The first person who met with the Unicorn returned <strong>feeling somewhat unsatisfied</strong> with their experience. The process was lengthy, being necessary to freeze the magic leaves in a large rainbow patterned cauldron and waiting to see if they regenerated.</p>



<p>Even though the way the <strong>magical sap</strong> functioned was still not understood, some of the tribes noticed two things, the magical sap was needed to activate the freeze and also a great quantity was needed.</p>



<p>The tribes have evolved by having individual technical and artistic experiences and, through their ancestral knowledge, have invoked a new tool and several golems have risen from the ground, each focussed on generating more.&nbsp;</p>



<p>How is this new strength being harnessed by Niftyland and what are the stakes for the tribes?</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="960" height="540" src="http://nfcms1/app/uploads/2020/10/treasury-1.jpg" alt="" class="wp-image-2901" srcset="http://nfcms1:80/app/uploads/2020/10/treasury-1.jpg 960w, http://nfcms1:80/app/uploads/2020/10/treasury-1-300x169.jpg 300w, http://nfcms1:80/app/uploads/2020/10/treasury-1-768x432.jpg 768w" sizes="(max-width: 960px) 100vw, 960px" /></figure></div>



<h2><strong>Decentralized Finance and NFTs</strong></h2>



<p>It is hard not to have heard about Decentralised Finance in the World of NFTs,&nbsp;especially with gas prices being so high for months.</p>



<p>We analysed the entire market over this time in one of our previous articles but the term DeFi has become very generic and represents several different definitions.&nbsp;</p>



<p>The truth is that as soon as a <strong>financial exchange system</strong> is set up on a decentralized blockchain, it becomes de facto decentralized finance and we can confirm that since the birth of the ERC721 standard, DeFi has existed within the very nature of NFTs themselves.</p>



<p>Several projects have tried out a beneficial&nbsp; economic model: <a href="https://axieinfinity.com/" target="_blank" rel="noreferrer noopener">Axie Infinity</a> and the Small Love Potion ($SLP), <a href="https://www.mycryptoheroes.net/" target="_blank" rel="noreferrer noopener">My Crypto Heroes</a> and the $GUM, <a href="https://decentraland.org/" target="_blank" rel="noreferrer noopener">Decentraland</a> and $MANA.. the common point of all these games is the <strong>manual interaction</strong> necessary to obtain rewards.&nbsp;</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="700" height="643" src="http://nfcms1/app/uploads/2020/10/axie-2.jpg" alt="" class="wp-image-2899" srcset="http://nfcms1:80/app/uploads/2020/10/axie-2.jpg 700w, http://nfcms1:80/app/uploads/2020/10/axie-2-300x276.jpg 300w" sizes="(max-width: 700px) 100vw, 700px" /></figure></div>



<p>In 2019, <a href="https://chainguardians.io/" target="_blank" rel="noreferrer noopener">Chain Guardians</a> tried an experiment ahead of their time by setting up an “NFT mining” system. Thanks to the projects that are part of their Cryptoverse Alliance, every hour it’s possible to send NFTs to mine blocks of Chain Guardians ‘$CGC’ for a chance to receive a mining reward.</p>



<h2><strong>Farming &amp; Mining with NFTs</strong></h2>



<p>Then everything stopped because of the intensive use of decentralized exchange <a href="https://uniswap.org/" target="_blank" rel="noreferrer noopener">Uniswap</a>.<br>‘<strong>Liquidity mining</strong>&#8216; consists of producing cryptos dedicated to the project when using a DeFI service in which the user must make investments. The rate of return is determined by the smart contract.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="752" height="426" src="http://nfcms1/app/uploads/2020/10/sushiswap-1.png" alt="" class="wp-image-2896" srcset="http://nfcms1:80/app/uploads/2020/10/sushiswap-1.png 752w, http://nfcms1:80/app/uploads/2020/10/sushiswap-1-300x170.png 300w" sizes="(max-width: 752px) 100vw, 752px" /></figure></div>



<p>Many took the opportunity to ‘grow’ money thanks to some very fast, very high but above all very risky returns. When passions for farming began to subside, the world of NFTs drew&nbsp;inspiration from farming for their own projects.</p>



<p>Being able to generate a decentralized and automated economy in addition to or thanks to NFTs, was going to become a reality. This year the first to have this feature in place was Niftymoji and their $MEXP on September 24th but then without explanation, the team performed an exit scam a few weeks later.</p>



<p>This first dramatic event was followed by another very soon after.</p>



<p>It is the sad story of Blue Kirby who promoted $YFI for several months until becoming an <strong>important emissary</strong> of it.<br><br>Building on this success, they took the opportunity to promote it on <a href="https://rarible.com/" target="_blank" rel="noreferrer noopener">Rarible</a> while publishing works on the platform where the community offered the project a great deal of support. Maybe it was for the $RARI, maybe for the quality of the works, in the end no one will know because overnight, Blue Kirby sold all their $YFI and closed its Twitter.&nbsp;</p>



<p>These experiences have shown several things:</p>



<ul><li>It is possible to <strong>easily generate</strong> <strong>liquidity</strong> through an NFT project</li><li>Users have shown a <strong>real interest</strong> in the NFT x DeFI combination</li><li>Scams take on another dimension and the amount of <strong>mischief has greatly evolved</strong></li></ul>



<p>Even though these events were noticed, it is interesting to note that the marketing of projects wanting to use the <strong>Liquidity Farming x NFT</strong> combination quickly succeeded in eclipsing these breaches of trust.</p>



<p>In order to try to understand as objectively as possible the mechanisms of this emerging mixture of genres, we have chosen two projects with completely different approaches: <a href="https://aavegotchi.com/" target="_blank" rel="noreferrer noopener">Aavegotchi</a>, <a href="https://cargo.build/" target="_blank" rel="noreferrer noopener">Cargo</a> and <a href="https://biffy.ai/" target="_blank" rel="noreferrer noopener">Biffy</a>.</p>



<h2><strong>Aavegotchi, the ghost to maintain</strong></h2>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="850" height="560" src="http://nfcms1/app/uploads/2020/10/Aavegotchi-2.png" alt="" class="wp-image-2893" srcset="http://nfcms1:80/app/uploads/2020/10/Aavegotchi-2.png 850w, http://nfcms1:80/app/uploads/2020/10/Aavegotchi-2-300x198.png 300w, http://nfcms1:80/app/uploads/2020/10/Aavegotchi-2-768x506.png 768w" sizes="(max-width: 850px) 100vw, 850px" /></figure></div>



<p>Aave is a stablecoin savings and borrowing platform. Although the project became known thanks to its innovations such as <strong>Flash Loans</strong>, a form of Liquidity Mining has developed in parallel.<br><br>For example, If you deposit $100 DAI on the platform, $100 aDAI will be created. This can be used as <strong>collateral</strong> on Uniswap, obtaining on one hand interest generated by the deposit of $DAI but also a percentage from exchanges using the $aDAI.</p>



<p>As this system is not within everyone&#8217;s reach, <a href="https://aavegotchi.com/" target="_blank" rel="noreferrer noopener">Aavegotchi</a> aims to make their experience more interactive and accessible. Currently in development, we were able to see how the project would work thanks to the team&#8217;s testing on the testnet.&nbsp;</p>



<p>It all starts with the project&#8217;s fungible token, the $GHST. It is possible to obtain it via Uniswap or directly from the site by passing a KYC. This token is a pivotal element of the project:</p>



<ul><li>Value backed by a “bonding curve” between $0.1 and $0.8</li><li>Can be stacked to generate $FRENS</li><li>Can be placed in the liquidity pool</li><li>Allows you to open a portal to generate your Aavegotchi</li></ul>



<p>The next step is to generate $FRENS, a token having only one purpose: to buy tickets that allow you to participate in a lottery to obtain wearables. These wearables will be NFTs that will influence your Aavegotchi&#8217;s statistics, so they can be directly attached to it or exchanged separately.</p>



<p>It is also possible to participate in the liquidity pool by freezing its $GHST to generate others.&nbsp;</p>



<p><strong>Next comes the Aavegotchi summoning step!</strong></p>



<p>After opening a portal for 100 $GHST, you get to choose&nbsp; between 10 ghosts in the colors of the collateral that are dedicated to them with a random rarity level. This level of rarity will determine the amount of collateral needed for its summons.&nbsp;</p>



<p>Once the payment is made, all you have to do is personalize it to make it more rare and therefore more efficient. The Aavegotchi is an NFT that can be traded on secondary markets and wearables are linked to it.</p>



<h2><strong>Biffy: technical experimentation</strong></h2>



<div class="wp-block-image"><figure class="aligncenter size-large is-resized"><img loading="lazy" src="http://nfcms1/app/uploads/2020/10/biffy-2-1024x1024.jpg" alt="" class="wp-image-2903" width="580" height="580" srcset="http://nfcms1:80/app/uploads/2020/10/biffy-2-1024x1024.jpg 1024w, http://nfcms1:80/app/uploads/2020/10/biffy-2-300x300.jpg 300w, http://nfcms1:80/app/uploads/2020/10/biffy-2-150x150.jpg 150w, http://nfcms1:80/app/uploads/2020/10/biffy-2-768x768.jpg 768w, http://nfcms1:80/app/uploads/2020/10/biffy-2-1536x1536.jpg 1536w, http://nfcms1:80/app/uploads/2020/10/biffy-2.jpg 1600w" sizes="(max-width: 580px) 100vw, 580px" /></figure></div>



<p>At the start of 2020, several teams of tech enthusiasts carried out original experiments with NFTs:</p>



<ul><li><strong>Words</strong>: It all started with the generation of a three-letter word. To be able to generate longer words, it was necessary to merge already existing syllables. If you were the owner of one of the syllables used, you earn a % of $ETH</li><li><strong>Maths</strong>: The same concept as Words but with numbers</li><li><strong>RGB</strong>: Creation of 8bit images where each pixel is a metadata registered in the NFT</li><li><strong>Chainfaces</strong>: Random generation of emoji in ASCII</li><li><strong>Bitsforai</strong>: Random generation by pixel algorithm in 8bit</li><li><strong>Metaglitch</strong>: Merge of a chosen glitch effect and another NFT to generate a new NFT</li></ul>



<p>The total cost for minting each of these NFTs was always under 0.05 ETH (including transaction fees) A <strong>ridiculous price</strong> which clearly proved the desire to want to experiment and <strong>have fun</strong> all in the technique of the game.</p>



<p>These projects have no connection between them, other than the fact they evolved out of a similar experimental space.&nbsp;</p>



<p>Despite a sometimes non-existent user interface, the community quickly showed an interest in these projects and each one sold out soon after their publication on the mainnet.&nbsp;</p>



<p>Of all these projects, it was Bitsforai who was chosen to carry out a new experiment that began in May but was postponed due to transaction costs: the emergence of <a href="https://biffy.ai/" target="_blank" rel="noreferrer noopener">Biffy</a>.&nbsp;</p>



<p>Unlike Aavegotchi that comes from DeFI, Biffy is a100% NFT community initiative. The concept is simple, to be able to use your Bitsforai to generate $LOVE, which will then be used and sacrificed to maintain Biffy!</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1066" height="1600" src="http://nfcms1/app/uploads/2020/10/biffy-number-3-1.jpg" alt="" class="wp-image-2891" srcset="http://nfcms1:80/app/uploads/2020/10/biffy-number-3-1.jpg 1066w, http://nfcms1:80/app/uploads/2020/10/biffy-number-3-1-200x300.jpg 200w, http://nfcms1:80/app/uploads/2020/10/biffy-number-3-1-682x1024.jpg 682w, http://nfcms1:80/app/uploads/2020/10/biffy-number-3-1-768x1153.jpg 768w, http://nfcms1:80/app/uploads/2020/10/biffy-number-3-1-1023x1536.jpg 1023w" sizes="(max-width: 1066px) 100vw, 1066px" /></figure></div>



<p>The goal? Have the first customizable artistic robot thanks to a community governance token. Without a token pre-sale, it would seem that the project does not put forward the financial aspect but rather a real co-construction of Biffy between the developer and the community.</p>



<p>The way in which the project will evolve will be carried out in 4 stages:</p>



<ul><li><strong>The mechanics</strong> stack and generate the $LOVE</li><li><strong>Body without organs</strong>:&nbsp; sacrifice of $LOVE for the benefit of Biffy&#8217;s hearts. Unique works will be distributed as badges to the biggest priests of $LOVE each week.</li><li><strong>Machine Desire</strong> Stack up Bitsforai to obtain $LOVE</li><li><strong>Autocatalysis </strong>The smart contracts all become improvable thanks to a transfer of their governance to the community.</li></ul>



<p>Details of each phase can be accessed from the “<a href="https://github.com/ethereal-nfts/biffy.ai-contracts/blob/master/README.md" target="_blank" rel="noreferrer noopener">read me</a>” section in the project&#8217;s Github.</p>



<h2><strong>Cargo &amp; Polyient Games Founder Key: transferring ownership</strong></h2>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="780" height="404" src="http://nfcms1/app/uploads/2020/10/polyient-cargo-1.jpg" alt="" class="wp-image-2889" srcset="http://nfcms1:80/app/uploads/2020/10/polyient-cargo-1.jpg 780w, http://nfcms1:80/app/uploads/2020/10/polyient-cargo-1-300x155.jpg 300w, http://nfcms1:80/app/uploads/2020/10/polyient-cargo-1-768x398.jpg 768w" sizes="(max-width: 780px) 100vw, 780px" /></figure></div>



<p>Among these new projects combining NFTs and DeFI, there is a problem that <a href="https://cargo.build/" target="_blank" rel="noreferrer noopener">Cargo</a> and <a href="https://www.polyient.games/" target="_blank" rel="noreferrer noopener">Polyient Games</a> want to solve, the change in portfolio when an NFT is linked to a liquidity mining activity.</p>



<p>To answer this, Cargo found a solution that competes with Rarible, a marketplace that based its business model on token generation through the creation and exchange of NFTs on its platform. Several aspects differentiate it, in particular, you must buy credits to mint NFTs but many NFTs can be batch minted thanks to ERC-2309.</p>



<p>Where Cargo innovates on one hand with the possibility of staking NFTs to generate $GEMS the platform&#8217;s governance token also allows the transfer of the link between the reward in $GEMS and the NFT to the new buyer.&nbsp;</p>



<p>On October 15th Polyient Games announced the possibility of staking $GEMS in their own NFT the Polyient Games Founder Key $PGFK. $PGFK, a non-fungible token, can be sharded or fractionalized into an ERC20 a fungible token, $XPGP for liquidity mining and as currency on their own upcoming DEX. <a href="https://medium.com/polyient-games/details-on-pgfk-particles-xpgp-334bec06f902" target="_blank" rel="noreferrer noopener">Learn more on their blog!</a></p>



<p>It can be a confusing space to dive into for many but this is a vital key that is the cornerstone of a larger universe allowing&nbsp; you to link to other liquidity mining projects for rewards.</p>



<h2><strong>A new NFT trend</strong></h2>



<p>These projects are only three examples which are well advanced in their realization, nobody can say if they will reach their finalization.&nbsp;</p>



<p>These new features are still extremely young in the ecosystem and it is therefore difficult to know which direction the use of Liquidity Mining by NFTs will take.&nbsp;</p>



<p>The question of the usefulness of such a function must be considered very carefully with an informed response from the team. If this only serves to generate money, we may as well say that the intrinsic value of the project is non-existent.</p>



<p>Thanks to the increasing integration of a second layer such as Matic Network, in the various projects to pay less costs for so-called ‘complex’ transactions, it is very likely that future DeFI x NFT experiences will increase in time to come.&nbsp;</p>



<p>Because even though today the risks of scams are high, the possibilities of Liquidity Mining opens the door to further sustain the decentralized ecosystems and economies that we build every day.&nbsp;</p>



<p>Undoubtedly this new use of NFTs is extremely interesting and paves the way for crypto-savings that are fully owned by users, more liquidity in the markets and endorses the positioning of NFTs as a store of value.</p>



<p>This last point is essential to underline, especially for assets based on a technology which is less than 3 years old.</p>



<p>Sources :&nbsp;<a href="https://unsplash.com/photos/DqGIaY0K08o" target="_blank" rel="noreferrer noopener">Illustration cover</a> &#8211; <a href="https://abstract.desktopnexus.com/wallpaper/2549144/" target="_blank" rel="noreferrer noopener">Illustration NFT x DeFI</a></p>


It is hard not to have heard about Decentralised Finance in the World of NFTs, which project is worth it ?

NFTs and Decentralized Finance: how it started


<p>When <a href="https://medium.com/megacryptopolis/mcp3d-started-what-will-be-your-strategy-359b4682dada" target="_blank" rel="noreferrer noopener">MegaCryptoPolis moved to 3D</a> a few months ago, that was just the start of a long series of updates. Indeed, the game has seen a lot of evolution since:</p>



<ul><li>Micro-economy</li><li>Implementation of the <a href="https://medium.com/megacryptopolis/mcp3d-launch-on-the-tron-blockchain-scheduled-for-march-25-158285f04609" target="_blank" rel="noreferrer noopener">Tron blockchain</a></li><li>A <a href="https://medium.com/megacryptopolis/the-most-powerful-analytics-tool-ever-made-for-a-dapp-3bd7dcd40cb4" target="_blank" rel="noreferrer noopener">newspaper</a></li><li><a href="https://medium.com/megacryptopolis/special-buildings-for-the-decentralized-city-39c80dced2e4" target="_blank" rel="noreferrer noopener">Points of interest and monuments</a></li></ul>



<p>So many contributions to the game to continue to enrich the gameplay with significant events. Today, the game is raising the bar even higher and further enriching its already developed economic system, thanks to features from Decentralized Finance (DeFI) thanks to a partnership with MakerDAO.</p>



<p>How will this new update, which marks a turning point in the gaming economy, work out?</p>



<p>What are the impacts for the players?</p>



<h2><strong>Many, many updates</strong></h2>



<p>When MegaCryptoPolis was launched, there was only macro-economics. If you remember<a href="https://nonfungible.com/news/game/megacryptopolis-discover-the-secrets-of-the-city-building-blockchain-game" target="_blank" rel="noreferrer noopener"> the article we wrote last year</a>, well everything has changed for the better.</p>



<p>Indeed, from the system of influence to the way you manage your assets, the game is now much more complete and many gameplay upheavals have taken place.</p>



<p><strong>The first big change</strong> in the game is in the buildings. From a simple network of influence communicating with each other, they now have one more utility:</p>



<ul><li><strong>Residential buildings</strong> produce citizens</li><li><strong>Offices</strong> give citizens jobs</li><li><strong>Commercial buildings</strong> train citizens and can change their appearance</li><li><strong>Municipal buildings</strong> have insurance funds if there is any natural disasters</li><li><strong>Mining buildings</strong> produce resources required to construct new buildings</li><li><strong>Production buildings</strong> produce complex resources required to upgrade buildings</li><li><strong>Industrial buildings</strong> produce Electricity and Water that is required for other buildings to operate</li></ul>



<p><strong>The second change </strong>concerns<strong> influence</strong>, now here is how the buildings depend on each other:</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1178" height="901" src="http://nfcms1/app/uploads/2020/09/dependend.png" alt="" class="wp-image-2783" srcset="http://nfcms1:80/app/uploads/2020/09/dependend.png 1178w, http://nfcms1:80/app/uploads/2020/09/dependend-300x229.png 300w, http://nfcms1:80/app/uploads/2020/09/dependend-1024x783.png 1024w, http://nfcms1:80/app/uploads/2020/09/dependend-768x587.png 768w" sizes="(max-width: 1178px) 100vw, 1178px" /></figure></div>



<p>Each red arrow indicates the negative influence the building has on the other, unlike the green ones which indicate the positive influence.</p>



<p><strong>The third change</strong> is the use of game resources. In fact, initially limited in number, they are &#8220;burned&#8221; as they are used! They are therefore increasingly rare and therefore more and more expensive.</p>



<p>Some resources are required for the construction of any building such as water or electricity and are only available in certain land locations.</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" width="640" height="480" src="http://nfcms1/app/uploads/2020/09/sand.png" alt="" class="wp-image-2784" srcset="http://nfcms1:80/app/uploads/2020/09/sand.png 640w, http://nfcms1:80/app/uploads/2020/09/sand-300x225.png 300w" sizes="(max-width: 640px) 100vw, 640px" /></figure></div>



<p><br>Others, such as wood, metal, stone or sand are common resources that can be generated by production buildings. In particular, they will make it possible to manufacture more complex resources subsequently.</p>



<p><strong>Finally, one of the latest changes</strong> is undeniably the support for the Tron blockchain! Every asset in the macroeconomics can be transferred from one blockchain to another, very easily, since March 2020!</p>



<p>According to DappRadar, this makes <a href="https://mcp3d.com/" target="_blank" rel="noreferrer noopener">MegaCryptoPolis</a> one of the most played games on this blockchain!</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="700" height="700" src="http://nfcms1/app/uploads/2020/09/megacryptopolis-city.png" alt="" class="wp-image-2785" srcset="http://nfcms1:80/app/uploads/2020/09/megacryptopolis-city.png 700w, http://nfcms1:80/app/uploads/2020/09/megacryptopolis-city-300x300.png 300w, http://nfcms1:80/app/uploads/2020/09/megacryptopolis-city-150x150.png 150w" sizes="(max-width: 700px) 100vw, 700px" /></figure></div>



<p>We could also talk about vehicles that influence building productivity, <a href="https://medium.com/megacryptopolis/points-of-interest-landmarks-and-monuments-in-the-decentralized-city-6cd50caeca5" target="_blank" rel="noreferrer noopener">important locations</a> that increase influence, or pets that boost your character&#8217;s stats, but we recommend that you read the <a href="https://www.megacryptopolis.com/doc/?page=howto_welcome" target="_blank" rel="noreferrer noopener">full team guide</a> instead!<strong> </strong>It will allow you to best develop your strategy between investor, worker or even insurer in the event of a natural disaster.&nbsp;</p>



<h2><strong>DeFI x MCP3D</strong></h2>



<p>Now that we&#8217;re up to date, let&#8217;s take a closer look at what DeFi will bring to the economy of MegaCryptoPolis.</p>



<p>We saw earlier the importance of resources for construction:</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="700" height="483" src="http://nfcms1/app/uploads/2020/09/defixmcp.png" alt="" class="wp-image-2786" srcset="http://nfcms1:80/app/uploads/2020/09/defixmcp.png 700w, http://nfcms1:80/app/uploads/2020/09/defixmcp-300x207.png 300w" sizes="(max-width: 700px) 100vw, 700px" /></figure></div>



<p>The only way to get it is through buildings that can produce it, but the problem lies elsewhere: if you wanted to sell it, it was only possible in packs of 100.</p>



<p>This is where the token issue by MCP3D comes in: $MEGA. Thanks to this ERC-20 token, it is now possible to buy or sell the amount of resources you want! The total amount of token has been pre-mined and locked in the “in-game vault,” which will now serve as the central space for all exchanges involving in-game materials.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1000" height="291" src="http://nfcms1/app/uploads/2020/09/mega-resources.png" alt="" class="wp-image-2787" srcset="http://nfcms1:80/app/uploads/2020/09/mega-resources.png 1000w, http://nfcms1:80/app/uploads/2020/09/mega-resources-300x87.png 300w, http://nfcms1:80/app/uploads/2020/09/mega-resources-768x223.png 768w" sizes="(max-width: 1000px) 100vw, 1000px" /></figure></div>



<p>The total amount of token has been pre-mined and locked in the “in-game vault,” which will now serve as the central space for all exchanges involving in-game materials. It not only makes it possible to optimize its purchases and sales but also ensures free trade as close as possible to its initial definition.</p>



<p>The fact that it is possible to buy or sell materials with $MEGA will fuel this vault and will greatly influence the economics of the game. The less $MEGA available in the safe, the less quickly citizens&#8217; energy will regenerate and the slower buildings will be constructed.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="700" height="334" src="http://nfcms1/app/uploads/2020/09/mega-resources-liquidity-pools.png" alt="" class="wp-image-2788" srcset="http://nfcms1:80/app/uploads/2020/09/mega-resources-liquidity-pools.png 700w, http://nfcms1:80/app/uploads/2020/09/mega-resources-liquidity-pools-300x143.png 300w" sizes="(max-width: 700px) 100vw, 700px" /></figure></div>



<p>If you want to get $MEGA, there are several ways. The most accessible if you are already a player is to <strong>deposit the produced resources</strong> in the safe. If you are new to playing MegaCryptoPolis, you will need to go through decentralized exchanges like Uniswap or go through exchanges against other players.</p>



<p>Its use will not only be limited to buying or selling materials, but you can also participate in pools of liquidity in order to earn interest. And yes, the $MEGA also acts as <strong>Liquidity Mining</strong>! To achieve this feat, the team has partnered with MakerDAO. This brings many advantages such as a 30% discount if you buy your citizen packs with DAI!</p>



<p>Finally, with transactions now going through the MATIC sidechain, the fees will be a distant memory.</p>



<p>If you are still not convinced by the seriousness of the game, we are preparing an article for you which will allow you to form an objective opinion on a market analysis since the launch of MCP3D on all the aspects mentioned in this article.</p>



<p>And if you prefer to have a preview of the game, feel free to <a href="https://tour.mcp3d.com/" target="_blank" rel="noreferrer noopener">follow this tutorial</a>, a citizen will be offered to you if you follow it to the end!</p>



<h2><strong>Conclusion</strong></h2>



<p>Following the process of creating a completely decentralized economy, MCP3D was already a pioneer thanks to its innovative gameplay from the start. The implementation of DeFI in a blockchain game is something new, however, and achieving this achievement marks a significant development in this sector!</p>



<p>It is therefore notable that DeFI is not just a hype element for games such as MegaCryptoPolis! This use mixed with that of NFTs gives a glimpse of the evolution which will surely take a lot of games in the future!</p>



<p class="has-vivid-red-color has-text-color">Disclaimer: This is a sponsored article. No content or article should be considered as financial advice. We strongly recommend you to conduct due diligence and always do your own research before investing in a project.</p>


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