Aavegotchi’s 100% on-chain Lending Feature is now live at app.aavegotchi.com/lending.
As they say frens, sharing is caring. What better way to share an NFT Gaming asset than with 100% certainty that it will be returned in a timeframe set by you? With Gotchi Lending, Aavegotchi owners can lend their Aavegotchi NFTs out to other players and begin accruing passive income in just a few clicks, all backed by the security of the blockchain.
Why Gotchi Lending?
A core dilemma facing the NFT gaming industry is scalability. How will these games scale their player base to the levels of traditional games without sacrificing the scarcity of the underlying NFT assets?
Gotchi Lending is the Aavegotchi protocol’s solution to this dilemma, and our improvement on the scholarship model made popular by other play-to-earn games. It ensures Aavegotchi NFTs get into the hands of players as seamlessly as possible.
No More Trusted Scholars
Until now, the only option for scalability was the scholarship model. Games like Axie Infinity and gaming guilds like YGG utilize scholarship systems to get NFT assets to players, but it comes with several issues.
The scholarship model relies heavily on the middleman and it is often difficult for prospective players to get assets in their hands to begin playing and earning. Once approved, scholars also have to rely on manual payments to receive their fair share of the earnings. This is a process prone to abuse and human error that doesn’t fit in with the spirit of Web3 at all.
Gotchi Lending improves on this model by keeping the entire lending process 100% on-chain.
The Gotchi Lending smart contract is designed so that Aavegotchi NFTs are lent with limited rights. Borrowers can use Aavegotchis to play-to-earn in the Gotchiverse, but never steal the NFT. The lender sets the duration they want to lend their Aavegotchi for, any up front fees, and the reward split between them and the borrower. Borrowers can browse the different options and find the Aavegotchi with the terms that best suit them.
Gotchi Lending allows for trustless sharing, backed by the security of the blockchain. In other words, bye-bye middleman!
Gotchi Lending for U and I
Now that you’re familiar with the why of Gotchi Lending, let’s take a look at the how. Follow this handy guide to lend or borrow a Gotchi today!
Step 1: Set the Duration and Upfront Cost
First the lender will set any upfront costs, the lending duration, and which tokens to share with the borrower. Whether to charge an upfront cost or not is up to the owner and the market. The majority of lenders will likely not charge an upfront cost, allowing anyone to use their Aavegotchis for free!
Step 2: Choose your Profit Split
Next they will set the profit split, including the option to send earnings to a third-party address such as a guild wallet.
Step 3: Review and Finalize
Finally, the lender reviews the terms one more time and creates the lending listing.
Lenders will also have the ability to create whitelists, making their Aavegotchis available only to an exclusive group of borrowers. This feature is perfect for guilds who want to make sure their Aavegotchi NFTs get into the hands of members of their guild.
On the other side of the coin, borrowers will have a number of filters at their disposal to allow them to find the Aavegotchi that best suits their needs. Aavegotchis available to borrow can be filtered by earnings split, upfront cost, duration, and shared tokens.
To Split or Not to Split
Thanks to feedback from the GotchiGang, we’ve added a feature to Gotchi Lending that allows the lender to choose which specific tokens to share with the borrower. This means a lender can choose to offer a sharing rate on some tokens and not others. For example, a lender can choose to offer a 100% sharing rate on one token, but not share any others. Alternatively, they could elect to share 50% of each.
Additionally, the token sharing options now include GHST in addition to the four types of Gotchus Alchemica. This is particularly important during Rarity Farming seasons, because lenders will get to determine what, if any, portion of an Aavegotchi’s GHST balance they wish to share.
Perfect for Guilds and Individuals Alike
Gotchi Lending is the perfect onramp to Aavegotchi for guilds and individuals alike. Guilds will be able to get their Aavegotchi NFTs to their players with ease utilizing the whitelist feature. They’ll be able to easily allocate fund splits to the player, the Gotchi’s owner, and the guild itself. This will encourage players who already have Aavegotchis, and those who do not, to join the guild. Large guilds will be able to offer Gotchi owners a continuous stream of players to borrow their Gotchis in exchange for a cut of the earnings.
Individuals will be able to take advantage of the feature as well. Perhaps you’ve got a fren or family member who you’ve been trying to onboard. Well, now they’ll be able to try out your Aavegotchi and enter the Gotchiverse for themselves!
Gotchi Lending FAQ
How to do I borrow an Aavegotchi?
Check out this handy video!
How do I lend my Aavegotchi
Check out this handy video!
Who pets a lent Aavegotchi?
The owner is still able to pet their Aavegotchi while it is being borrowed.
Is there a way to recall an Aavegotchi early once it’s been lent?
No, once created an agreement cannot be broken or recalled.
Can a borrower add or remove Wearables from an Aavegotchi?
No, when borrowing an Aavegotchi you cannot equip or unequip any Wearables. The borrower will be able to tell how many Wearables are equipped before choosing to borrow a Gotchi.
Do you need to relist an Aavegotchi once a rental period has concluded?
Yes, you will need to relist once the agreement has been concluded.
However, you can also extend the agreement by simply not concluding it. The agreement will stay active until either the Lender or Borrower ends it.
Just in Time for the Gotchiverse
Aavegotchi NFT owners can now lend their spooky frens out to others and begin passively earning. Players who don’t own an Aavegotchi have the ability to get in the game and start earning, free of charge. The addition of this feature makes Aavegotchi and the Gotchiverse moar accessible than evar before.
Get started with Gotchi Lending now at app.aavegotchi.com/lending
Aavegotchi is an open-source, community owned NFT gaming protocol, enabling true asset ownership for gamers. Aavegotchi NFTs are on-chain collectible ghosts staked with Aave’s interest-generating aTokens.
Compete for player rewards by earning XP, leveling up, and increasing the rarity of your Aavegotchi fren. Aavegotchi is governed by the AavegotchiDAO and the native eco-governance token GHST. Visit Aavegotchi.com today and join the future of DeFi-staked NFT avatars!
Official Website: https://aavegotchi.com/
Gotchiverse Website: https://verse.aavegotchi.com
Official Wiki: https://wiki.aavegotchi.com