Sigbog is a proud Aavegotchi parent and trainer who is excited to find out how this unique idea will evolve over time.
What Is an Aavegotchi?
Aavegotchis are crypto-collectible pixelated ghosts that entered the fray in early 2021. These ghosts are actually non-fungible tokens (NFTs) staked with DeFi-enabled ERC20 tokens powered by Aave. These tokens are known as aTokens.
That's a mouthful, but the short of it is that you stake tokens with your Aavegotchis, and by doing so, you participate in yield-bearing positions on the Aave lending platform. In this sense, you are essentially yield-farming via your collectible NFT Aavegotchis. This makes the system an interesting cross between NFTs and DeFi (decentralized finance).
If this interests you, you may be curious to about how to get involved. Currently the process can be a bit clumsy, so we'll walk through what you need to know.
How to Get Started
Currently, getting your hands on your first Aavegotchi can be a little frustrating due to the many steps required to move your various cryptocurrencies around. Additionally, there are fees that come up along the way.
With a little help, however, the process can be simplified. Ultimately, you'll need Aavegotchi (GHST) tokens in a wallet connected to the Polygon network so you can use them at the Aavegotchi Bazaar to buy things. Aavegotchi uses Polygon instead of the Ethereum mainnet to reduce fees, but you can transfer back and forth between the two. Here's what you must do:
- Set up or use a wallet that supports Polygon (renamed from Matic.) A very commonly used one is the MetaMask wallet, and this guide, we will use it, though Aavegotchi does accept others.
- You'll need to use the MetaMask browser extension throughout this process, so be sure to install that. As a side note, if using MetaMask, you can switch which network you are connecting to, but your balances only show on the currently connected network. If you are using MetaMask with Ethereum mainnet, you won't see any currencies in your same MetaMask account connected to the Polygon network.
- If applicable, buy GHST directly and transfer it to the supported wallet of your choice (I will use MetaMask as the example.) You can buy GHST directly from some exchanges such as Binance or Kraken, but you may also use a swap service to exchange other cryptocurrencies for GHST if your preferred exchanges don't list GHST.
- If swapping instead of buying, make sure you have the right cryptocurrency ready to swap for GHST. I personally did this by transferring Ethereum from my Coinbase account into my MetaMask wallet. From there, I used Uniswap to exchange it for GHST. I then owned GHST, but it was still on the Ethereum mainnet and needed to be moved to Polygon.
- Use the Polygon bridge to move the GHST to Polygon.
- You can now connect your MetaMask wallet with the Aavegotchi website! You should then see your GHST and be able to access the Bazaar.
Several of these steps require transactions that take fees, and setting up a new wallet can certainly be a bit of a pain. Hopefully, these steps get less frustrating in the coming months and years, but I consider the frustration a natural part of the early adoption process for new technology!
Screenshots of the Process
Using the Bazaar
The Bazaar is where you can buy all things Aavegotchi related, including new Aavegotchis, wearables, consumables, raffle tickets, and portals to summon Aavegotchis.
You do these things with GHST tokens, but the transactions are conducted on Polygon using Matic. You'll need Matic to do more or less anything, but transactions there are very cheap, unlike transactions on the Ethereum mainnet. A transaction can take as little as 0.0002 Matic, which at the time of this writing, represents about two-hundredths of a US penny. If you don't have enough Matic in your account to conduct transactions, a message will appear at the top of the Aavegotchi website informing you and linking to a faucet that allows you to get a little bit for free.
When you have sufficient Matic, you can partake in the Aavegotchi world. You can buy Aavegotchis from other players or summon one from a portal yourself. After buying yourself an Aavegotchi, you can begin adorning it with wearables, interacting with it, playing minigames with it, or adding to its Spirit Force!
The Future of Aavegotchis
The prospect of more gamified yield farming by using Aavegotchis as an in-between for DeFi and NFTs is at least interesting, if not exciting. However, it does still feel like it's in its infancy, as it requires a complex process to participate, and the ghosts themselves have limited use (at the moment). I hope that this improves over time because the idea seems to have potential or at least be a more amusing way to earn yield on your currencies.
This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.