Currently the second-largest project in decentralized finance, lending and borrowing protocol Aave has been one of the DeFi ecosystem’s fastest risers and biggest stars in 2020.
That this is the case isn’t surprising, either: the Aave team has developed and delivered innovations at a rapid pace this year, e.g. interest-bearing aTokens like aLINK, flash loans, credit delegation, and more.
That said, Aave’s builders aren’t ones to slow down or stop expanding. One of the project’s latest advances has been beyond DeFi proper and into the realm of non-fungible tokens (NFTs) via Aavegotchi, a new spinoff game loosely-inspired by Tamagotchi that blends elements of the DeFi and NFT arenas in novel ways.
In today’s post, then, let’s explore what this up-and-coming, DeFi-native game is all about.
The Aave team first announced Aavegotchi in early July 2018 as a project for “gamifying your DeFi experience” by “helping you bring your yield to life with various game mechanics around aToken yields.” The game would feature things like:
- Aavegotchi ghosts, i.e. collectible NFTs that have Aave aTokens staked inside them as collateral.
- Continuously growing collateral in Aavegotchis since aTokens generate yield via Aave’s lending system.
- Randomly-generated traits that determine everything about Aavegotchis, from their skill and rarity levels to what wearable NFTs they can use.
Days after the project’s announcement, the team brought on cryptoartist Xibot as the project’s designer; the talented creator immediately got to work fleshing out the game’s signature pixelated style, as depicted below.
Around this same time, the team launched social media accounts and continued solidifying the project’s whitepaper, DAO structure, and tokenomics.
I’ve been interested in ideas combining DeFi + NFTs. I think what @aavegotchi is doing with gamification of DeFi is really neat. Each Aavegotchi represents DeFi collateral earning yield on