How to Buy Aavegotchi (GHST) Safely

What is Aavegotchi?

Aavegotchi is a cryptocurrency game with DeFi developed by Singapore-based Pixelcraft Studios that allows players to bet non-fungible token (NFT) avatars with interest-generating tokens and interact with the Aavegotchi metaverse. It is a unique combination of Decentralized Finance (DeFi) and NFTs.

Aavegotchis are pixelated ghosts living on the Ethereum blockchain, backed by the ERC-721 standard. Their value is determined by rarity level, which is calculated through multiple factors, such as basic traits, amount of collateral/aTokens staked and equipped wearables.

To level up their Aavegotchis, players can participate in various activities, such as mini-games, governance and encounters. Aavegotchis can also increase their rarity level by equipping wearables in the game and leveling up.

Rare Aavegotchis not only have a higher secondary value in the bazaar, but also allow the Aavegotchi to perform better in rarity farming, a mini-game that rewards rarer Aavegotchis with GHST tokens.

Aavegotchi is governed by AavegotchiDAO, which manages all funds generated through the distribution of GHST tokens.

Aavegotchis are rare cryptocurrencies that live on the Ethereum blockchain, backed by the ERC-721 standard used in popular blockchain games such as CryptoKitties, Axie Infinity and Cryptovoxels. Aavegotchis possess three attributes that determine their overall value and rarity within the Aavegotchi universe: collateral stake, traits and wearables.

Collateral stake: Each Aavegotchi ERC721 NFT manages an escrow contract address that holds an Aave-backed ERC20 collateral, or “aToken”. The aTokens generate yield through Aave’s LendingPool, which increases the amount of aTokens held in the portfolio. Thus, the amount of aTokens held in the Aavegotchi custodial address grows over time.

Traits: Aavegotchis possess multiple traits that influence their rarity, their performance in mini-games, and the accessories they can equip. Some are randomly generated at birth, and others depend on the user’s interactions with the Aavegotchi. See Traits.

Random traits: At birth, each Aavegotchi is assigned several random trait values using the ChainLink VRF random number generator. The trait values are distributed in a bell curve, and each trait is assigned a value of Common, Uncommon, Rare or Mythical depending on its rarity.

Kinship: “Kinship” is not assigned randomly, but starts with a fixed value (50) at birth and increases or decreases depending on several factors, such as how long the Aavegotchi has been with the same owner and how often the owner interacts with the Aavegotchi.

Experience: Aavegotchis level up as they gain more experience by voting on AavegotchiDAO and participating in mini-games. Every three levels, aavegotchis receive a spirit point that they can allocate to increase or decrease a certain trait.

Wearables: In addition to managing the aToken repository, Aavegotchis also extend the ERC998 Composables standard, which allows them to manage child NFTs, known as wearables in the Aavegotchi ecosystem. Not all wearables can be equipped by all Aavegotchi. Some wearables can be equipped exclusively by Aavegotchis staked with certain collaterals, those of a certain level and those with certain traits. Some wearables can increase or decrease certain traits of an Aavegotchi. For example, equipping a sword can slightly increase an Aavegotchi’s aggressiveness, while equipping a Bob Marley t-shirt can decrease its energy level.

The relationship between collateral stake, traits, clothing items and parentage is best represented by an onion diagram (see below). Each layer builds on the previous ones, and the sum is the Aavegotchi itself.

Value of the Aavegotchi

The valuation of an Aavegotchi comes from both its intrinsic value and its rarity value.

Intrinsic value The intrinsic value is the value of the Aavegotchi’s collateral. If the Aavegotchi is staked with 10 aDAI, then the intrinsic value would be 10 aDAI, plus any extra aDAI that has accumulated from the Loan Fund. Initially, only ERC20 tokens listed on the Aave platform (aTokens) will be available as collateral. However, once AavegotchiDAO is launched, the community will be able to vote on what new collateral will be allowed.

Rarity Value The rarity value is determined by calculating the rarity of each Aavegotchi’s traits and equipped items within the Aavegotchi universe. Unlike other NFT games, rarity is not a fixed value in Aavegotchi. It can change over time as Aavegotchis level up and are equipped with different accessories. Thus, a rare Aavegotchi one week may become common, and vice versa, depending on the general distribution of traits and accessories in the Aavegotchi universe. This allows a new concept known as “rarity farming”, which is explained on this page.