What are Aavegotchi NFT pets and are they worth the $450 entry price?

Aavegotchi is a game that uses NFTs with dynamic attributes to earn crypto by playing minigames and leveling up NFTs, and despite its triple-digit entry price, is one of the most popular Blockchain Play-To-Earn (P2E) games ). Aave (in Finnish means “ghost”) is a cryptocurrency lending and borrowing app that allows users to get cryptocurrency loans using their cryptocurrency/stablecoin holdings as collateral.

aTokens are interest-bearing cryptocurrencies issued when a user makes a deposit on Aave, and they can be bought and sold on decentralized exchanges (DEX) such as Uniswap or Quickswap. In short, when a user deposits crypto, they get tokens, and when they deposit tokens, they get crypto. Each cryptocurrency accepted by Aave is associated with an aToken (ie aUSDC, aWETH) and aTokens held in a crypto wallet will slowly accumulate over time.

According to Swissborg Academy, Aavegotchi pets, or “Gotchis”, can be bought or sold on the Aavegotchi market with GHST tokens, or they can be created by purchasing a “Portal” and summoning a new one. Each Gotchi requires a minimum of aTokens to exist, which are marked on each Gotchi’s forehead, and each has unique stats/attributes that can be leveled up over time by playing with (and petting) the Gotchi pet. Aavegotchi is run by AavegotchiDAO, a decentralized autonomous organization (DAO) of GHST token holders and developed by Singapore-based Pixelcraft Studios. GHST is earned by playing mini-games and voting on the DAO and can be bought or sold on Polygon’s Quickswap DEX.

How do attributes determine their utility?

Used Aavegotchi pets can have better stats, equipped items, and a name, while new Aavegotchi pets will start with randomly generated attributes, no NFT outfit, and no name. Currently, the base price for a low-level Aavegotchi pet is around GHST 410, or $471. To summon a new NFT Gotchi animal, a portal must be purchased. Open portals will show 10 possible Gotchi that can be summoned, but only one can be selected, while closed portals show nothing, but have a small chance to drop a rare Gotchi when opened (but probably won’t do it). At the moment, the portals are being sold at a base price of GHST 515-570 ($600-655). To invoke a Gotchi, the user must first deposit the required amount of aTokens, which is determined by its rarity.

A Gotchi’s attributes determine its rarity, performance in minigames, and the NFT outfits that can be equipped with it. Most attributes are changed by interacting with, upgrading and equipping NFT wearables. Random features are assigned by the Chainlink oracle VRF random number generator and plotted on a bell curve to show their rarity. The more extreme a trait is on one side or the other, the more useful it will be for some minigames while detrimental to others, and the only “bad” traits are the tool. Gotchis gain experience (XP) by voting and playing mini-games, and with enough XP, the pet can “level up”. Every few levels, a Gotchi pet will receive a soul point to increase/decrease a trait chosen by the user. The more levels a Gotchi pet has and the more refined its traits, the more valuable it will be to its owner (and other players).

While a price of $450+ is a steep ask to play the 2D pixelated minigame, dedicated players who learn to use the Aavegotchi system can actually make money by earning crypto rewards, or train and return their animals domestic Gotchi other players. Aavegotchi is currently one of the most advanced P2E games on the blockchain and is a great example of how NFTs and cryptocurrencies can be used to create games that blur the line between gaming and decentralized finance. (DeFi), otherwise known as “GameFi”. Although Aavegotchi is unlikely to expand beyond its native crypto space due to the high entry price, curious players can still rent a Gotchi NFT pet to play mini-games and earn crypto rewards.

Source: Swissborg Academy, Aavegotchi

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