If you’re wondering what I am talking about, it's about a project on the ethereum called aavegotchi. Aavegotchis are Ethereum-based crypto-collectibles powered by NFT technology. Aavegotchi ($GHST), powered by Aave, is the combination of Defi staking and non-fungible tokens (NFT) that possesses three attributes, determining their value and rarity: collateral stake, traits, and wearables.
Aavegotchi — Defi-Staked Crypto Collectibles (Image credit: Aavegotchi Whitepaper)
Introduction to NFTs (Non-Fungible Tokens)
An NFT or non-fungible token is a completely unique blockchain-based digital asset. It has its own identifiers and is truly one of a kind — resulting in digital scarcity that can be easily verified.
In comparison, fungible tokens are identical sets of assets that can be stacked on top of each other with no ability to tell one from another.
A non-fungible token is like a hand-crafted gold ring that you have engraved with your spouse’s name, whereas a fungible token is like a gold block with no identifying markers on it.
Revolutionizing NFTs
Non-fungible tokens have many potential use cases. One of the most prominent applications for NFTs is for use in blockchain gaming.
Firstly, to embrace true ownership of gaming assets, think about gamers being able to own one-of-a-kind in-game swords, vehicles, clothing, real estate, characters, and more. Items that are theirs and only theirs, that they can form an emotional attachment to.
Secondly, NFTs can also be integrated into multiple games and apps — allowing players to move from game to app to game using their NFTs everywhere they go.
ERC-1155 vs ERC-721
All NFTs are not created equal, which is clear when comparing the ERC-1155 and ERC-721 token standards.
A token standard is a set of rules that defines the data and, therefore, the functions that each token is capable of.
The ERC-1155 token standard was created to function like a vending machine, where developers could deploy a single smart contract that can be used to mint unlimited fungible (identical) tokens and non-fungible (unique) tokens.
In comparison, the ERC-721 token standard only produces non-fungible tokens and forces developers to deploy a new smart contract for each new token.
ERC-721: The original non-fungible token standard
ERC-721 is like having to create a new vending machine for every bottle of Mountain Dew you want to distribute — creating a lot of wasted space, production cost, and development time when deploying NFTs to the blockchain.
GHST token
The native digital cryptographically-secured utility token of the Aavegotchi ecosystem (GHST) is a transferable representation of attributed functions specified in the protocol/code of the Aavegotchi ecosystem, which is intended to be used solely as the primary utility token within the ecosystem.
GHST is to be used as the base ecosystem currency for the purchase of various digital assets, such as Aavegotchi Portals, wearables, consumables, and collectibles. As an indication of a commitment to the ecosystem and safeguard against malicious behavior, players are also required to stake GHST to mint REALM, the land parcels of the Aavegotchi Realm.
GHST is inherently transferable to other users, and also fully exchangeable with various supported ETH and ERC20 tokens, such as DAI, LEND (AAVE), and others.
Intrinsic Value
Their intrinsic value originates from the amount staked by users on the NFT behind the Aavegotchi. The collateral stake, along with the interest it has accrued from Aave’s lending pool, becomes an Aavegotchi’s intrinsic value. For example, a 10 aLEND stake in an Aavegotchi will mean that it can hold that value as well, along with the interest accrued.
As of now, the only collaterals that can be staked on Aavegotchis are ERC-20 tokens listed on the Aave platform. As soon as the AavegotchiDAO is launched, the number of acceptable collaterals can be expanded.
Rarity Value
The rarity of an Aavegotchi influences its value as well. This introduces the concept of “rarity farming” on the ecosystem as well. Users get rewards for training rare Aavegotchis and trading them with other players on its platform.
Rarity Farming
Rarity farming is a novel game mechanism introduced in Aavegotchi designed to encourage and reward thoughtful gameplay and active participation from users. Players get rewarded in GHST tokens for training the rarest Aavegotchis.
How you Rarity score calculated
Each Aavegotchi possesses a Base Rarity Score (BRS) derived from the overall rarity of its traits and equipped wearables.
Base Rarity Score is derived by the following formula:
BRS = traitValue >= 50 ? traitValue : 100-traitValue
In addition to this Base Rarity Score, Aavegotchis also possess an overall Absolute Rarity Score derived from the particular rarity of their traits in the overall Aavegotchi ecosystem.
For example, if many players have trained their Aavegotchis to have maximum Energy Level, then the Absolute Rarity Score (ARS) for Energy Level — TURNT would be lower than that of Energy Level — WASTED.
Absolute Rarity Score is calculated in terms of percentiles out of 100 for each of the Aavegotchi traits, so if only 5% of all Aavegotchis possess a certain trait, then that trait would receive a bonus of 95 to its ARS.
The Total Absolute Rarity Score for an Aavegotchi is the sum of:
- Base Rarity Scores for all traits
- Base Rarity Scores of all equipped wearables
- Absolute Rarity Score for all traits
In each period (length determined by AavegotchiDAO), the rarest Aavegotchis will receive a distribution of GHST rewards (derived from all sales involving GHST) that can be claimed by their owners.
The given rarity of an Aavegotchi in the overall Aavegotchi Universe is constantly shifting as players summon more Aavegotchis, equip more wearables, and level up their Aavegotchis. Thus, players must make strategic decisions on how they train and equip their Aavegotchis.
There is currently no limit to how many interactions an Aavegotchi can perform each period, but if bot activity became a problem then the AavegotchiDAO could vote to add circuit breakers to reduce bot activity.
Sources:
Aavegotchi whitepaper
watch this video about aavegotchi
