Liquidity, liquidity, and always liquidity. Cultural identity seems to make a mockery of finance, because capital is often violent and disorderly. This flowing beauty is both loved and hated. But Aavegotchi’s presence gave DeFi a hippie meme.

The project’s low threshold allowed DeFi kids of my generation to fulfill their dream of anti-authority Punk hero in a financial sense for the first time. ​Since its birth, Aavegotchi has been very different from other GameFi and NFT players. It has an experiential DeFi growth system.

The first time you get such an equal player experience of financial mobility, pricing, availability and compatibility in a gamified way, and the first time you have the first imps in the system, you will be eagerly shaken by the hippie frenzy of capital. ​

With five years of experience in the industry, I have seen many DeFi and NFT projects rise and fall. This article will explain from my perspective why Aavegotchi promises to be the best NFT project of the Web3.0 era, and why I’m disappointed that blue-chip projects like Cryptopunks and BAYC are hardly worth mentioning. ​

Aavegotchi: The perfect symbiosis of DeFi, NFT and DAO

If I scroll back to 2019, the best NFT product in my mind was Cryptopunks. At that time the price of each PUNK was not high and ETH was cheap. Since CryptoKitties were just beginning to take off, most people were as wary of ideas like NFT as I was. I’m sure there are a lot of people like me who are excited about projects like Cryptopunks. ​It’s so cool!

The answer is blowing in the wind

At that time we entered the crypto space with anger about the reality, the resistance to authority and seeking another way out. In a secular sense, Cryptopunks are a perfect portrait of a lot of cynical losers like us who have gone into cryptocurrency to find a way to change the world. We are renegades, but visionaries seeking to change the world. ​

This decentralized Punk culture attracts us who love freedom and oppose authority. Every Punk in Cryptopunks was cheap, but it gave me courage to survive in crypto space. At least when it comes to these cheap NFTS, we’re all equal. Although later developments were beyond our imagination. We can’t deny the wealth effect of Punk’s massive price increase, but it is no longer the fearless Punk who rebelled against authority. ​

The high floor prices reflect the aristocratic elitism of these old NFT projects. They look like bags of rubbish with the Burberry logo. For us crypto street dwellers, it’s just like “moon in the water, flower in the mirror”. If Punk has lost his street spirit and populist spirit, it is ironic to be an authority. ​

So I turned to Aavegotchi, a more radical, dynamic, and decentralized totem of Punk culture. ​

Crypto Imp: DeFi’s classic design for scarcity and sustainability

Aavegotchi is built on Aave and introduces a proliferating ecosystem around the classic character of Aavegotchis by combining it with NFT&DeFi gameplay and the Play to Earn model. Users can constantly participate and interact with the game through gameplay such as pledge mining, Rarity Farming and Bid2Earn. If a player wants to rank higher, it takes more effort and money. ​

From the development of crypto pets, pure NFT nurturing games combined with DeFi have become a trend. The player summons Aavegotchi from the portal by staking aTokens and engaging it in a series of interactions to achieve the ultimate gamified DeFi experience. In Aavegotchi, early players need to constantly increase the imps’ rarity (BRS) and level in order to monetize. Now, with the development of the Metasemes of Gotchiverse games, Aavegotchi has gradually shifted from focusing on earning money from GHST and imp to land and gameplay. ​

Scarcity makes for a wonderful synergy between DeFi and NFT. On the one hand, DeFi can provide utility, functional tokens and nested extensions to more complex financial infrastructures through scenario extensions to the NFT ecosystem. NFT, on the other hand, provides DeFi with a wider range of collateral.

NFT has become the first real world asset to enter the metaverse. While it is difficult to value real world assets through NFT and the legal mechanisms are still inadequate, projects like Aavegotchi are addressing this issue through sustainable scarcity play. The successful implementation of the Gotchiverse metasomes will open up huge untapped potential in the Punk cultural community and will undoubtedly serve as the freshest DeFi fuel to ignite the next NFT pet explosion season. ​​

Aavegotchi: The new Punk cultural totem

Over the years, DeFi and blockchain games have grown exponentially, and Aavegotchi’s daily active user count (DAU) currently stands at more than 2,000, according to DappRadar. Aavegotchi’s daily users have been steadily increasing since the launch of the landmark Gotchiverse in 2022 and the launch of a rental system that complements the P2E model. ​

Aavegotchi’s “check-in” model of pet imps to increase social intimacy, as well as the Gotchiverse’s regular “pick up” mechanic to keep players interacting with each other on a regular basis, increased retention. Although most transactions on Aavegotchi are high-frequency and small transactions, the overall user interaction frequency is quite high. ​

Gotchiverse: A New World of Punk spirituality

Gotchiverse Realm is a 2D pixelated meta-universe built on Aavegotchi and co-created by the community with direct input from AavegotchiDAO. In Gotchiverse, players can make NFT, explore, socialise, and Play to Earn. Gotchiverse Realm’s story setting itself promises to become a classic GameFi narrative Meme. ​

When the DeFi peasants of the etheric world are liquidated, their souls travel to Gotchiverse, where they are reincarnated as Aavegotchi. To continue this exciting saga, the player must lead the intrepid Aavegotchis in a battle for resources with the Liquidators. ​

Gotchiverse is an open game world, and the team expects the exploration process to take at least five years. Players can participate in a variety of activities such as farming, crafting, trading, and fighting. Additionally, the Arena in Gotchiverse allows PvP battles.

In Gotchiverse Realm, players with imps can earn money by tilling their land, while civilians can choose the Liquidator camp to earn money by collecting gold spilled from imps’ land mines, or by looting imps’ devices. ​

One of the most attractive features of Gotchiverse is the ability to build NPCS on land in the form of dApps. This means players can build anything they like. Whether it’s a minigame dApp that charges players, a dApp that sells NFT artwork, or hosting a radio show and earning sponsorship income, etc. If players can build and monetize a dApp, they can use it to earn revenue in Gotchiverse. This greatly expands GameFi’s source of value for real world assets, and is a much better way to play than it used to be by simply raising imps to increase their rarity. ​

Volatility rarity, restlessness source of DeFi value

As the Gotchiverse metaverse progressed, Aavegotchi moved from a P2E scarcity model focused on GHST and Imp to an economic model of metaverse land and games. Governance token GHST has ecosystem values such as payment, mortgage, governance and incentive. In particular, Aavegotchi’s DAU has been steadily increasing since Gotchiverse and the game’s rental system went live in 2022. ​

The main problem with integrating NFT with traditional loan agreements is the lack of reliable pricing data. While oracles can be used, it is almost impossible for NFT to price in real time. The majority of NFT mortgage activity is currently conducted on a P2P basis.

The Gotchiverse Realm economy model is designed to theoretically form a closed-loop economic system with high scarcity and high liquidity, and to build a larger economic system by improving playability and worldview.

Aavegotchi creates a sustainable incentive for players to continue to generate revenue. Gotchiverse Realm takes it to a whole new level of playability and fun. In particular, attempts at imps NFT lending are expected to be successful in this closed-loop system. Gotchiverse Realm has built a new Aavegotchi 2.0 valuation system. ​

I believe we will see Gotchiverse explore NFT agriculture in the future. What’s more, it will be even more contagious in the next wave of memes. With the success of the Gotchiverse Realm, DeFi and NFT will eventually become compatible and mutually beneficial. ​

Most importantly, Aavegotchi should strive to maintain a distinctive community culture: imps and ghosts should become as many as possible, rather than raising the floor price to complete the whale game. Only by maintaining the liquidity incentives of populist protectionism can NFT regain its Meme boom, rather than becoming a fake narcissist like BAYC or Cryptopunks.

By Kyle, Investment Manager@Bing Ventures