Explained: The Aavegotchi GHST Token

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Playable assets that act as collateral on DeFi networks

GHST is the native governance token for Aavegotchi, a DeFi-focused play-to-earn ecosystem on the Polygon blockchain. Aavegotchis are basically game avatars that can be used as DeFi collateral to earn staking rewards. Similar to CryptoKitties, the tokens have differentiating features such as body color and personality, and being a staked asset, its owner can liquidate the tokens at any time. Unfortunately, liquidating the NFT means the Aavegotchi is also gone forever.

The project was due to launch on January 4th, 2021, but was pushed to mid-March due to high transaction fees on the Ethereum blockchain. Now it runs on the Polygon blockchain. Pixelmatic Studios built their own bridge, to allow users to transfer NFTs between Ethereum and Polygon.

Source: Coingecko

In the past 180 days, the value of GHST has fluctuated between $1,00 and $1,75. Only in the past few weeks the token broke the resistance at $1,75, and move towards $2,00.

Reasons for the positive market sentiment for GHST can be found in new developments. In August the team will introduce new Aavegotchi ghosts through an event called The Haunt 2. In addition, they revealed a litepaper, describing a virtual world where NFT-owners will find all kinds of play-to-earn gameplay options. GHST is the native token for all of this.

What is an Aavegotchi?

Aavegotchis are playable assets that also act as collateral on DeFi networks. To interact with one, DeFi users need to stake select tokens known as aTokens such as LINK (aLINK) and USDC (aUSDC) into the digital collectible. 

Apart from earning interest from staked tokens, holders of the platform’s native currency, GHST, also receive rewards. Furthermore, Aavegotchis are tradable on OpenSea and other NFT marketplaces meaning that those with valuable Aavegiotchis can realize the value.

Aavegotchi is banking on a system it calls rarity farming. Basically, the rarer the Avegotchi, the higher the price it should fetch on the market. Moreover, the platform shares part of its revenue with leading rarity farmers in a bid to gain user retention. 

The top exchanges for trading in Aavegotchi GHST tokens are currently Binance and Uniswap. Exchanges usually offer several pairing options, giving token owners the chance to choose a pairing based on currencies they already possess. Below are the top 3 trading pairs for GHST.

Source: CoinMarketCap

Through integration with Aave and its aTokens, NFTs on the Aavegotchi platform creates unique interest-bearing representations of funds supplied to the Aave protocol. Future drops, low transaction fees, and an expanding NFT store demonstrate that there is a healthy demand for GHST, and this is likely to grow as the platform expands.

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