Aavegotchi is now auctioning NFTs, and adds a twist to the way these get sold through a system called bid-to-earn. They have introduced bid-to-earn as a way to make multiple people win during an auction. Pixelmatic Studios named their new auction system Aavegotchi Auction.
An NFT sale often has the premise of first come first serve. Sometimes, when company use an auction, many people can join but only two people will win: the auction winner and the seller. Aavegotchi’s new bid-to-earn mechanism lets previous bidders also share in the success of an auction.
They’ve got a big auction coming up for the Haunt 2 and for land parcels in the Gotchiverse Realm, during which they will sell 30,000 NFTs. Before that sale happens, they are first testing the bid-to-earn mechanic during a three-day period, starting today. Users can now bid on wearables for their gotchis.
How does Bid-to-Earn work
During the new wearables auction, users can bid on Gamer and Steampunk wearables. When they are being outbid, they will get their money back and receive a small fee based on the higher bid. Bidding happens on the Polygon blockchain, and you will need the GHST token for that.
Each so-called GBM auction can be configured with certain presets for maximum earning. For this Wearable auction, the developers a minimum of 1% , and maximum of 10%. This means that the max amount you can earn from being outbid is a full 10% of the bid amount!
The auction will end July 18, 2021 at 2PM UTC. The auction will be extended for 5 minutes every time someone places a bid during the last 5 minutes of the auction.
What is Aavegotchi?
Aave is the Finnish word for ghost. An Aavegotchi is a cute little pixelated ghost that has several traits. First of all, there’s financial collateral backing the existence of the little ghost. In addition, these ghosts have random traits, they can wear clothes and others items, and they come with a certain rarity level. You could see an Aavegotchi ghost as a modern piggy bank that generates interest while wearing cool pixelated items. The money backing the ghost will always be there. And adding rare NFT wearables increases its performance and therefore makes it more valuable.
With GHST Aavegotchi has a newly announced eco-governance token. Users can acquire GHST through Uniswap and other exchanges, or the Aavegotchi platform. You buy GHST using DAI, and you need some Aave aTokens, like aDAI for example. Then you need to spend GHST to get a portal, which will give you a cute little Aavegotchi. Owners can use this little ghost in games, sell them for a profit or burn them to regain the money backing its existence.