Project Overview:

Background

Aavegotchi is an open-source, community-owned NFT gaming protocol.

Key stakeholders and participants

• Aavegotchi DAO
• GHST Holders
• Aavegotchi holders
• Pixelcraft Studios (founding team)

Documentation, guides, and educational resources

Website

Docs

Forum

GHST CoinGecko

BC Simulation

Bonding Curve Doc

Gotchi Verse Analytics

History

1. The Bonding Curve was initiated after a private & pre-sale. Avaliable to KYC’ed members.
2. Launch Mechanism: Decentralized autonomous initial coin offering (DAICO)
3. A price of 0.2 DAI was set with the liquidity provided by the pre-sale
4. It successfully worked for 2.5 years
5. Following uncertainty around stablecoins depegging and the fear of contagion, a proposal to close the BC was approved via a DAO vote
6. The vote passed (investigate more)
7. The max supply was fixed around 53 million he reserve asset (DAI) was redistributed to Pixelcraft, DAO treasury, Liquidity Pools

What worked well

• Enabled the bootstrapping of a community
• Reserve asset from the curve was used to help pay for active development
• Curve was successfully closed and assets repurposed
• Volatility was limited to the downside

What issues arose

• Volatility was limited to the upside
• Concern of reserve asset contagion

Bonding Curve Design:

Description

Shape: Convex, price increases at an increasing rate

Type: Constant Product Market Maker, Exponential

Native Token: GHST

Reserve Asset: DAI

Reserve Ratio: 33% -

<aside> 💡 Price curve grow more aggressively with increasing supply. The chart shows the particular price curve for RR = 33%. A RR lower than 33% would react even more aggressively (sharper exponential curve) than this, and a CW higher than 33% would relatively flatten towards the linear shape as it approaches 50%.

</aside>

Fees: 2.5% on all swaps

KYC: Yes

Status: Closed Source Software

Pricing algorithm

Uses the Bancor Formula

Explanation

• Reserve Token refers to the reserve asset that users put into the bonding curve

• The Continuous Token is the GHST token, that users receive in return for depositing the reserve asset

• Reserve Ratio: a fixed ratio between 0 - 100%, of the value in the reserve pool / the value of the token supply * price

  <aside> 💡 This ratio determines how sharply a BC Token price needs to adjust in order to be maintained with every transaction, or in other words, its price sensitivity. A higher ratio will result in lower price sensitivity, meaning that each buy and sell will have a relatively softer effect on the price movement. A lower ratio will result in higher price sensitivity, meaning that each buy and sell will have a relatively stronger effect on the token price movement

  </aside>

Additional Mechanisms

Tap mechanism:

Reserve Assets in BC are tapped into and given to PixelCraft for active development. Amount is gov by the DAO

Governance and Tokenomics:

GHST Utility

• Base ecosystem currency

• Used throughout the ecosystem for:

• Staking

• Voting in the DAO

• Revenue Sharing: GHST that is spent within the ecosystem is redistributed:

  

  • Players earn it via:

Governance model

• Aavegotchi DAO is a 100% on-chain DAO
• DAO controls the Tap Mechanism
• more stuff

Objectives & Goals:

1. Creating a healthy play-to-earn ecosystem that rewards active players and DAO participants
2. Ensuring that GHST token has a strong foundation for long-term value capture
3. Building a treasury for AavegotchiDAO to use on discretionary spending
4. Providing ongoing financial rewards to those developing Aavegotchi

Marketplaces

PAMM

• GHST can be bought directly from the bonding curve on ethereum Mainnet

SAMM

• DEX’s on ethereum such as Uniswap & Matcha
• DEX’s on polygon such as QuickSwap

Centralized

• Centralized exchanges such as Okex & Binance

Distribution