Aavegotchi has introduced Gotchi Lending, a new way to generate passive income by lending NFTs to other players. The Aavegotchi Lending system functions completely on-chain, and allows players to rely completely on blockchain technology without the need of human efforts.
The Aavegotchi lending system, also dubbed the on-chain Uber of the Gotchiverse, gives players borrowing the NFTs limited access to the NFTs. There will be a duration to the contract, a fee and possibly a reward split. Players can even limit the availability of their Gotchis to their own social circle, or everybody globally. This would allow someone in a guild to lend Gotchi NFTs only to other guild members.
The concept of lending NFTs was pioneered by the Axie Infinity community, where the current popularized scholarship program comes from. It gives gamers with less financial power the ability to participate and earn in and from an ecosystem. The Aavegotchi improves on that system by letting all lending options happen on the blockchain. The system even allows players to set rules for the way how NFTs are split between the lender and the borrower.
Second land sale coming December 2nd
Aavegotchi will conduct its second Gotchiverse Land Sale on December 2nd at 15:00 UTC and it will run through December 5th. They will auction exactly 7,000 parcels of land using a unique bid-to-earn platform, while they will give away 3,000 parcels in a raffle. Additionally, participants will earn GHST for bidding, even if they don’t end up winning.
The bid-to-earn auction will take place between December 2nd and December 5th, with 7,000 parcels up for grabs. A drop-ticket raffle will be held between December 10th and 13th to distribute the remaining 3,000 parcels. Participants will use GHST to bid. It might be wise to grab your GHST sooner rather than later, based on what we saw with the first land sale.
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.
Robert Hoogendoorn is a gamer and blockchain enthusiast. He got in touch with crypto in 2014, but the fire really lit in 2017. Professionally he’s a content optimization expert and worked for press agencies and video production companies, always with a focus on the video games & tech industry. He’s a content manager and creator at heart, started the Play to Earn Online Magazine in early 2020.